Power Integrations Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: PWI (€64) is trading above our estimate of fair value (€3.78)

Significantly Below Fair Value: PWI is trading above our estimate of fair value.


Key Valuation Metric

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

Key metric: As PWI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for PWI. This is calculated by dividing PWI's market cap by their current earnings.
What is PWI's PE Ratio?
PE Ratio96.9x
EarningsUS$37.37m
Market CapUS$3.62b

Price to Earnings Ratio vs Peers

How does PWI's PE Ratio compare to its peers?

The above table shows the PE ratio for PWI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.5x
ELG Elmos Semiconductor
10.6x4.1%€1.1b
IFX Infineon Technologies
22.6x17.0%€39.5b
WAF Siltronic
15x-17.0%€1.4b
AIXA AIXTRON
13.7x6.2%€1.6b
PWI Power Integrations
96.9x41.2%€3.6b

Price-To-Earnings vs Peers: PWI is expensive based on its Price-To-Earnings Ratio (96.9x) compared to the peer average (15.5x).


Price to Earnings Ratio vs Industry

How does PWI's PE Ratio compare vs other companies in the European Semiconductor Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
PWI 96.9xIndustry Avg. 14.8xNo. of Companies7PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PWI is expensive based on its Price-To-Earnings Ratio (96.9x) compared to the European Semiconductor industry average (14.8x).


Price to Earnings Ratio vs Fair Ratio

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

PWI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio96.9x
Fair PE Ratio25.1x

Price-To-Earnings vs Fair Ratio: PWI is expensive based on its Price-To-Earnings Ratio (96.9x) compared to the estimated Fair Price-To-Earnings Ratio (25.1x).


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 PWI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€64.00
€72.24
+12.9%
10.2%€83.36€60.20n/a5
Nov ’25€55.50
€72.40
+30.4%
10.8%€85.76€61.38n/a5
Oct ’25€57.50
€72.40
+25.9%
10.8%€85.76€61.38n/a5
Sep ’25€59.50
€71.82
+20.7%
11.1%€86.92€62.21n/a6
Aug ’25€67.00
€81.10
+21.0%
11.2%€92.58€67.58n/a5
Jul ’25€65.00
€81.10
+24.8%
11.2%€92.58€67.58n/a5
Jun ’25€69.50
€81.53
+17.3%
11.2%€93.07€67.94n/a5
May ’25€63.00
€79.44
+26.1%
11.0%€92.16€67.28n/a6
Apr ’25€65.00
€79.44
+22.2%
11.0%€92.16€67.28n/a6
Mar ’25€66.00
€79.44
+20.4%
11.0%€92.16€67.28n/a6
Feb ’25€69.50
€75.63
+8.8%
14.7%€92.19€59.92n/a6
Jan ’25€75.00
€74.75
-0.3%
15.1%€91.60€59.54n/a5
Dec ’24€70.00
€71.53
+2.2%
11.8%€84.04€60.70n/a5
Nov ’24€65.00
€83.71
+28.8%
10.3%€99.13€75.53€55.506
Oct ’24€72.00
€82.09
+14.0%
11.2%€95.41€72.70€57.506
Sep ’24€77.50
€82.09
+5.9%
11.2%€95.41€72.70€59.506
Aug ’24€88.00
€86.41
-1.8%
11.9%€99.53€74.19€67.006
Jul ’24€85.50
€84.58
-1.1%
10.3%€97.41€74.22€65.006
Jun ’24€80.50
€80.59
+0.1%
8.0%€90.89€72.71€69.506
May ’24€66.00
€80.06
+21.3%
8.8%€86.59€68.36€63.006
Apr ’24€76.00
€80.27
+5.6%
14.1%€93.34€61.60€65.006
Mar ’24€77.50
€80.27
+3.6%
14.1%€93.34€61.60€66.006
Feb ’24€79.00
€72.21
-8.6%
17.7%€91.99€59.79€69.506
Jan ’24€67.00
€73.32
+9.4%
9.9%€84.80€64.84€75.006
Dec ’23€76.50
€73.32
-4.2%
9.9%€84.80€64.84€70.006
Nov ’23€67.50
€83.34
+23.5%
11.9%€91.10€64.78€65.006

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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