Applied Optoelectronics, Inc.

BST:A59 Stock Report

Market Cap: €1.6b

Applied Optoelectronics Valuation

Is A59 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 A59 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: A59 (€36.8) is trading below our estimate of fair value (€106.35)

Significantly Below Fair Value: A59 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for A59?

Key metric: As A59 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for A59. This is calculated by dividing A59's market cap by their current revenue.
What is A59's PS Ratio?
PS Ratio8.2x
SalesUS$209.55m
Market CapUS$1.71b

Price to Sales Ratio vs Peers

How does A59's PS Ratio compare to its peers?

The above table shows the PS ratio for A59 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.2x
ADV Adtran Networks
2.1x4.6%€1.0b
FEW Funkwerk
1xn/a€163.6m
CEK CeoTronics
1.4x10.3%€41.1m
CFC aconnic
0.3xn/a€17.9m
A59 Applied Optoelectronics
8.2x50.7%€1.7b

Price-To-Sales vs Peers: A59 is expensive based on its Price-To-Sales Ratio (8.2x) compared to the peer average (1.2x).

Price to Sales Ratio vs Industry

How does A59's PS Ratio compare vs other companies in the European Communications Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
A59 8.2xIndustry Avg. 1.1xNo. of Companies10PS00.81.62.43.24+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: A59 is expensive based on its Price-To-Sales Ratio (8.2x) compared to the European Communications industry average (1.1x).

Price to Sales Ratio vs Fair Ratio

What is A59'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.

A59 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio8.2x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate A59's Price-To-Sales Fair Ratio for valuation analysis.

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 A59 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€36.80
€20.88
-43.3%
22.8%€25.66€13.06n/a4
Nov ’25€14.40
€14.63
+1.6%
26.1%€18.28€8.23n/a4
Oct ’25n/a
€14.46
0%
26.1%€18.07€8.13n/a4
Sep ’25n/a
€12.82
0%
26.7%€16.48€8.24n/a3
Aug ’25n/a
€14.16
0%
16.3%€16.62€11.08n/a3
Jul ’25n/a
€14.23
0%
16.3%€16.71€11.14n/a3
Jun ’25n/a
€14.23
0%
16.3%€16.71€11.14n/a3
May ’25€9.70
€16.86
+73.8%
9.1%€18.74€14.99n/a3
Apr ’25€12.90
€16.69
+29.3%
9.1%€18.54€14.83n/a3
Mar ’25€13.60
€16.63
+22.3%
9.1%€18.48€14.79n/a3
Feb ’25€15.10
€19.98
+32.3%
5.8%€21.21€18.45n/a3
Jan ’25n/a
€19.30
0%
4.8%€20.22€18.38n/a2
Dec ’24€14.80
€15.68
+5.9%
19.4%€18.72€12.63n/a2
Nov ’24n/a
€14.77
0%
27.0%€18.76€10.78€14.402
Oct ’24€10.60
€14.77
+39.3%
27.0%€18.76€10.78n/a2
Sep ’24€12.80
€14.42
+12.7%
27.0%€18.31€10.53n/a2
Aug ’24€6.00
€5.70
-4.9%
60.0%€9.13€2.28n/a2
Jul ’24€4.38
€5.70
+30.2%
60.0%€9.13€2.28n/a2
Jun ’24€2.04
€3.40
+66.8%
33.3%€4.54€2.27n/a2
May ’24€1.75
€4.92
+180.9%
42.9%€7.02€2.81€9.702
Apr ’24€1.74
€4.92
+182.1%
42.9%€7.02€2.81€12.902
Mar ’24€2.55
€4.92
+92.8%
42.9%€7.02€2.81€13.602
Feb ’24€2.34
€4.68
+100.1%
39.9%€7.26€2.90€15.103
Jan ’24€1.75
€4.68
+167.0%
39.9%€7.26€2.90n/a3
Dec ’23€2.16
€4.68
+116.8%
39.9%€7.26€2.90€14.803
Nov ’23€2.74
€5.09
+85.8%
37.6%€7.49€2.80n/a3

Analyst Forecast: Target price is lower than the current share price.

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