Ciena Corporation

LSE:0HYA Stock Report

Market Cap: US$13.2b

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

Discounted Cash Flow
Simply Wall St
US$78.54
Fair Value
15.7% overvalued intrinsic discount
15
Number of Analysts

Below Fair Value: 0HYA ($90.86) is trading above our estimate of fair value ($78.54)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for 0HYA. This is calculated by dividing 0HYA's market cap by their current revenue.
What is 0HYA's PS Ratio?
PS Ratio3.2x
SalesUS$4.01b
Market CapUS$13.23b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for 0HYA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average6.4x
SPT Spirent Communications
3x7.3%UK£1.1b
FTC Filtronic
4.8x-4.3%UK£203.1m
SRT SRT Marine Systems
13xn/aUK£153.7m
HLMA Halma
5x5.4%UK£10.8b
0HYA Ciena
3.2x8.7%US$13.2b

Price-To-Sales vs Peers: 0HYA is good value based on its Price-To-Sales Ratio (3.2x) compared to the peer average (6.4x).

Price to Sales Ratio vs Industry

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

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
0HYA 3.2xIndustry Avg. 1.1xNo. of Companies10PS012345+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 0HYA is expensive based on its Price-To-Sales Ratio (3.2x) compared to the European Communications industry average (1.1x).

Price to Sales Ratio vs Fair Ratio

What is 0HYA'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.

0HYA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.2x
Fair PS Ratio4x

Price-To-Sales vs Fair Ratio: 0HYA is good value based on its Price-To-Sales Ratio (3.2x) compared to the estimated Fair Price-To-Sales Ratio (4x).

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$90.86
US$90.07
-0.9%
11.3%US$105.00US$60.00n/a15
Feb ’26US$86.62
US$90.07
+4.0%
11.3%US$105.00US$60.00n/a15
Jan ’26US$84.90
US$87.93
+3.6%
14.9%US$105.00US$57.00n/a15
Dec ’25US$69.85
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$42.50US$86.6215
Jan ’25US$45.02
US$58.89
+30.8%
11.3%US$70.00US$42.50US$84.9015
Dec ’24US$46.79
US$59.19
+26.5%
10.3%US$70.00US$46.00US$69.8515
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
Analyst Price Target
Consensus Narrative from 15 Analysts
US$91.22
Fair Value
0.4% undervalued intrinsic discount
15
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/07 03:33
End of Day Share Price 2025/02/07 00:00
Earnings2024/11/02
Annual Earnings2024/11/02

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

Ciena Corporation is covered by 46 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Edward ZabitskyACI Research
James KelleherArgus Research Company
Blair KingAvondale Partners