CEVA, Inc.

LSE:0Q19 Stock Report

Market Cap: US$702.7m

CEVA Valuation

Is 0Q19 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-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 0Q19 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0Q19 ($29.17) is trading above our estimate of fair value ($19.12)

Significantly Below Fair Value: 0Q19 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0Q19?

Key metric: As 0Q19 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 0Q19. This is calculated by dividing 0Q19's market cap by their current revenue.
What is 0Q19's PS Ratio?
PS Ratio6.9x
SalesUS$101.88m
Market CapUS$702.66m

Price to Sales Ratio vs Peers

How does 0Q19's PS Ratio compare to its peers?

The above table shows the PS ratio for 0Q19 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.6x
AWE Alphawave IP Group
5.3x33.8%UK£937.8m
CML CML Microsystems
1.6xn/aUK£38.6m
ENSI EnSilica
1.7x15.0%UK£43.5m
KMK Kromek Group
1.9xn/aUK£35.9m
0Q19 CEVA
6.9x9.5%US$702.7m

Price-To-Sales vs Peers: 0Q19 is expensive based on its Price-To-Sales Ratio (6.9x) compared to the peer average (2.6x).

Price to Sales Ratio vs Industry

How does 0Q19's PS Ratio compare vs other companies in the European Semiconductor Industry?

9 CompaniesPrice / SalesEstimated GrowthMarket Cap
0Q19 6.9xIndustry Avg. 1.7xNo. of Companies9PS01.22.43.64.86+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 0Q19 is expensive based on its Price-To-Sales Ratio (6.9x) compared to the European Semiconductor industry average (1.8x).

Price to Sales Ratio vs Fair Ratio

What is 0Q19'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.

0Q19 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio6.9x
Fair PS Ratio7.7x

Price-To-Sales vs Fair Ratio: 0Q19 is good value based on its Price-To-Sales Ratio (6.9x) compared to the estimated Fair Price-To-Sales Ratio (7.7x).

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 0Q19 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$29.17
US$32.83
+12.6%
18.1%US$40.00US$21.00n/a6
Nov ’25US$23.64
US$27.83
+17.7%
14.1%US$33.00US$21.00n/a6
Oct ’25US$23.78
US$27.83
+17.0%
14.1%US$33.00US$21.00n/a6
Sep ’25US$23.94
US$27.86
+16.4%
13.1%US$33.00US$21.00n/a7
Aug ’25US$18.93
US$26.57
+40.4%
14.9%US$31.00US$20.00n/a7
Jul ’25US$19.42
US$26.57
+36.8%
14.9%US$31.00US$20.00n/a7
Jun ’25US$19.70
US$26.57
+34.9%
14.9%US$31.00US$20.00n/a7
May ’25US$19.85
US$27.86
+40.3%
7.3%US$31.00US$25.00n/a7
Apr ’25US$22.74
US$27.86
+22.5%
7.3%US$31.00US$25.00n/a7
Mar ’25US$23.55
US$27.86
+18.3%
7.3%US$31.00US$25.00n/a7
Feb ’25US$19.44
US$24.57
+26.4%
9.4%US$28.00US$20.00n/a7
Jan ’25US$22.80
US$24.57
+7.8%
9.4%US$28.00US$20.00n/a7
Dec ’24US$21.84
US$24.57
+12.5%
9.4%US$28.00US$20.00n/a7
Nov ’24US$17.11
US$26.71
+56.1%
17.3%US$35.00US$20.00US$23.647
Oct ’24US$20.23
US$28.14
+39.1%
26.9%US$45.00US$20.00US$23.787
Sep ’24US$23.46
US$28.14
+20.0%
26.9%US$45.00US$20.00US$23.947
Aug ’24US$26.64
US$32.86
+23.3%
18.9%US$45.00US$23.00US$18.937
Jul ’24n/a
US$32.86
0%
18.9%US$45.00US$23.00US$19.427
Jun ’24US$24.86
US$32.86
+32.2%
18.9%US$45.00US$23.00US$19.707
May ’24US$25.20
US$39.00
+54.8%
10.1%US$45.00US$32.00US$19.857
Apr ’24US$28.97
US$39.00
+34.6%
10.1%US$45.00US$32.00US$22.747
Mar ’24US$32.12
US$39.00
+21.4%
10.1%US$45.00US$32.00US$23.557
Feb ’24n/a
US$35.71
0%
13.4%US$45.00US$30.00US$19.447
Jan ’24n/a
US$35.71
0%
13.4%US$45.00US$30.00US$22.807
Dec ’23US$27.51
US$35.71
+29.8%
13.4%US$45.00US$30.00US$21.847
Nov ’23US$26.17
US$47.14
+80.1%
19.3%US$60.00US$35.00US$17.117

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

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