Penguin Solutions Valuation

Is 88E undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 88E when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€32.55
Fair Value
35.3% undervalued intrinsic discount
8
Number of Analysts

Below Fair Value: 88E (€21.05) is trading below our estimate of fair value (€32.55)

Significantly Below Fair Value: 88E is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 88E?

Key metric: As 88E is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 88E. This is calculated by dividing 88E's market cap by their current revenue.
What is 88E's PS Ratio?
PS Ratio1x
SalesUS$1.34b
Market CapUS$1.29b

Price to Sales Ratio vs Peers

How does 88E's PS Ratio compare to its peers?

The above table shows the PS ratio for 88E vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.1x
SIS First Sensor
5.2xn/a€599.6m
ELG Elmos Semiconductor
2.8x7.98%€1.6b
WAF Siltronic
0.9x6.16%€1.3b
IFX Infineon Technologies
3.3x8.57%€48.9b
88E Penguin Solutions
1x9.98%€1.3b

Price-To-Sales vs Peers: 88E is good value based on its Price-To-Sales Ratio (1x) compared to the peer average (3.1x).


Price to Sales Ratio vs Industry

How does 88E's PS Ratio compare vs other companies in the DE Semiconductor Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
M5Z Manz
0.06x1.94%US$3.39m
M5Z Manz
0.01x-35.83%US$2.58m
D0Q Sondrel (Holdings)
0.2xn/aUS$2.02m
No more companies available in this PS range
88E 1.0xIndustry Avg. 2.3xNo. of Companies3PS01.22.43.64.86+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 88E is good value based on its Price-To-Sales Ratio (1x) compared to the European Semiconductor industry average (2.3x).


Price to Sales Ratio vs Fair Ratio

What is 88E's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

88E PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1x
Fair PS Ratio0.9x

Price-To-Sales vs Fair Ratio: 88E is expensive based on its Price-To-Sales Ratio (1x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 88E forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€21.35
€22.61
+5.88%
14.55%€30.00€18.00n/a8
Jul ’26€16.40
€22.16
+35.09%
13.91%€26.52€15.91n/a8
Jun ’26€15.40
€22.16
+43.87%
13.91%€26.52€15.91n/a8
May ’26€14.50
€22.03
+51.97%
13.91%€26.38€15.83n/a8
Apr ’26€15.90
€23.80
+49.69%
10.94%€27.73€18.49n/a8
Mar ’26€18.50
€25.86
+39.77%
7.21%€29.19€22.38n/a7
Feb ’26€19.30
€25.86
+33.97%
7.21%€29.19€22.38n/a7
Jan ’26€18.30
€23.52
+28.52%
7.64%€25.74€20.98n/a6
Dec ’25€16.90
€22.82
+35.02%
9.68%€25.49€19.83n/a6
Nov ’25€14.60
€22.52
+54.22%
10.24%€24.92€19.38n/a5
Oct ’25€18.70
€29.49
+57.70%
10.14%€32.00€24.69n/a4
Sep ’25€18.40
€29.49
+60.27%
10.14%€32.00€24.69n/a4
Aug ’25€21.00
€29.49
+40.43%
10.14%€32.00€24.69n/a4
Jul ’25€20.60
€25.75
+25.01%
13.96%€32.54€22.31€16.405
Jun ’25€18.60
€25.75
+38.46%
13.96%€32.54€22.31€15.405
May ’25€17.20
€26.02
+51.30%
13.96%€32.88€22.55€14.505
Apr ’25€24.40
€24.17
-0.95%
14.57%€31.92€21.89€15.906
Mar ’25€19.60
€24.17
+23.31%
14.57%€31.92€21.89€18.506
Feb ’25€18.10
€24.17
+33.52%
14.57%€31.92€21.89€19.306
Jan ’25€17.30
€24.88
+43.84%
15.82%€33.29€20.92€18.306
Dec ’24€15.10
€24.88
+64.80%
15.82%€33.29€20.92€16.906
Nov ’24€12.80
€24.88
+94.41%
15.82%€33.29€20.92€14.606
Oct ’24€23.00
€31.38
+36.44%
7.26%€35.01€28.39€18.706
Sep ’24€23.60
€29.90
+26.68%
7.26%€33.35€27.04€18.406
Aug ’24€24.00
€29.90
+24.57%
7.26%€33.35€27.04€21.006
Jul ’24€26.40
€30.39
+15.13%
7.26%€33.91€27.49€20.606
AnalystConsensusTarget
Consensus Narrative from 8 Analysts
€22.35
Fair Value
5.8% undervalued intrinsic discount
8
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/07/15 16:17
End of Day Share Price 2025/07/15 00:00
Earnings2025/05/30
Annual Earnings2024/08/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Penguin Solutions, Inc. is covered by 13 analysts. 7 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Thomas O'MalleyBarclays
Rustam KangaCitizens JMP Securities, LLC
Shek HoDeutsche Bank