Ciena Corporation

LSE:0HYA Stock Report

Market Cap: US$10.1b

Ciena Valuation

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

Below Fair Value: 0HYA ($69.84) is trading below our estimate of fair value ($99.45)

Significantly Below Fair Value: 0HYA is trading below fair value by more than 20%.

Key Valuation Metric

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

Key metric: As 0HYA is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0HYA. This is calculated by dividing 0HYA's market cap by their current earnings.
What is 0HYA's PE Ratio?
PE Ratio73.3x
EarningsUS$138.13m
Market CapUS$10.13b

Price to Earnings Ratio vs Peers

How does 0HYA's PE Ratio compare to its peers?

The above table shows the PE ratio for 0HYA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average48.1x
SPT Spirent Communications
92.8x40.5%UK£984.5m
FTC Filtronic
52.3xn/aUK£164.2m
HLMA Halma
35.5x8.4%UK£10.2b
MWE M.T.I Wireless Edge
11.7x3.5%UK£38.8m
0HYA Ciena
73.3x39.5%US$10.1b

Price-To-Earnings vs Peers: 0HYA is expensive based on its Price-To-Earnings Ratio (73.3x) compared to the peer average (48.1x).

Price to Earnings Ratio vs Industry

How does 0HYA's PE Ratio compare vs other companies in the European Communications Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0HYA 73.3xIndustry Avg. 31.0xNo. of Companies7PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0HYA is expensive based on its Price-To-Earnings Ratio (73.3x) compared to the Global Communications industry average (31x).

Price to Earnings Ratio vs Fair Ratio

What is 0HYA'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.

0HYA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio73.3x
Fair PE Ratio52.6x

Price-To-Earnings vs Fair Ratio: 0HYA is expensive based on its Price-To-Earnings Ratio (73.3x) compared to the estimated Fair Price-To-Earnings Ratio (52.6x).

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 0HYA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$69.84
US$65.73
-5.9%
12.1%US$80.00US$46.00n/a15
Nov ’25US$64.03
US$65.00
+1.5%
12.3%US$80.00US$46.00n/a15
Oct ’25US$60.56
US$62.13
+2.6%
9.1%US$68.00US$46.00n/a15
Sep ’25US$56.43
US$56.77
+0.6%
10.8%US$66.00US$44.00n/a15
Aug ’25US$50.57
US$56.43
+11.6%
10.3%US$66.00US$44.00n/a15
Jul ’25US$47.51
US$56.43
+18.8%
10.3%US$66.00US$44.00n/a15
Jun ’25US$47.39
US$57.30
+20.9%
12.3%US$68.00US$42.50n/a15
May ’25US$46.57
US$58.96
+26.6%
12.5%US$68.00US$42.50n/a16
Apr ’25US$49.56
US$60.17
+21.4%
11.1%US$68.00US$42.50n/a14
Mar ’25US$60.55
US$59.10
-2.4%
10.6%US$68.00US$42.50n/a14
Feb ’25US$53.81
US$59.43
+10.4%
11.2%US$70.00US$42.50n/a15
Jan ’25US$45.02
US$58.89
+30.8%
11.3%US$70.00US$42.50n/a15
Dec ’24US$46.79
US$59.19
+26.5%
10.3%US$70.00US$46.00n/a15
Nov ’24US$42.02
US$59.19
+40.9%
10.3%US$70.00US$46.00US$64.0315
Oct ’24US$47.17
US$59.19
+25.5%
10.3%US$70.00US$46.00US$60.5615
Sep ’24US$48.83
US$58.46
+19.7%
11.3%US$70.00US$46.00US$56.4314
Aug ’24US$42.10
US$56.28
+33.7%
13.4%US$70.00US$41.00US$50.5714
Jul ’24US$42.88
US$57.35
+33.8%
13.3%US$70.00US$41.00US$47.5114
Jun ’24US$46.98
US$63.39
+34.9%
12.4%US$74.00US$45.00US$47.3914
May ’24US$45.32
US$63.39
+39.9%
12.4%US$74.00US$45.00US$46.5714
Apr ’24US$51.83
US$64.59
+24.6%
15.0%US$86.00US$45.00US$49.5615
Mar ’24US$48.19
US$62.43
+29.5%
12.8%US$76.00US$45.00US$60.5516
Feb ’24US$50.99
US$62.58
+22.7%
12.4%US$76.00US$45.00US$53.8117
Jan ’24US$50.52
US$62.29
+23.3%
12.4%US$76.00US$45.00US$45.0217
Dec ’23US$44.50
US$57.58
+29.4%
14.2%US$71.00US$40.00US$46.7917
Nov ’23US$47.72
US$57.88
+21.3%
13.2%US$71.00US$45.00US$42.0217

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

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