Extreme Networks Valuation

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

Below Fair Value: 0IJW ($18.15) is trading above our estimate of fair value ($12.34)

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


Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for 0IJW. This is calculated by dividing 0IJW's market cap by their current revenue.
What is 0IJW's PS Ratio?
PS Ratio2.3x
SalesUS$1.03b
Market CapUS$2.40b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for 0IJW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.4x
SPT Spirent Communications
2.9x5.6%UK£1.0b
FTC Filtronic
6.2x22.0%UK£157.7m
BVC BATM Advanced Communications
0.8x12.5%UK£81.5m
SRT SRT Marine Systems
7.8xn/aUK£93.0m
0IJW Extreme Networks
2.3x8.7%US$2.4b

Price-To-Sales vs Peers: 0IJW is good value based on its Price-To-Sales Ratio (2.3x) compared to the peer average (4.4x).


Price to Sales Ratio vs Industry

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

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
0IJW 2.3xIndustry Avg. 1.0xNo. of Companies7PS00.81.62.43.24+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 0IJW is expensive based on its Price-To-Sales Ratio (2.3x) compared to the European Communications industry average (1x).


Price to Sales Ratio vs Fair Ratio

What is 0IJW'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.

0IJW PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.3x
Fair PS Ratio4.3x

Price-To-Sales vs Fair Ratio: 0IJW is good value based on its Price-To-Sales Ratio (2.3x) compared to the estimated Fair Price-To-Sales Ratio (4.3x).


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 0IJW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$18.15
US$19.33
+6.5%
13.8%US$22.50US$15.00n/a6
Dec ’25US$16.54
US$19.33
+16.9%
13.8%US$22.50US$15.00n/a6
Nov ’25US$15.02
US$19.33
+28.7%
13.8%US$22.50US$15.00n/a6
Oct ’25US$14.64
US$15.25
+4.1%
13.1%US$18.00US$13.00n/a6
Sep ’25US$15.71
US$15.25
-2.9%
13.1%US$18.00US$13.00n/a6
Aug ’25US$13.47
US$14.75
+9.5%
10.7%US$17.00US$13.00n/a6
Jul ’25US$13.14
US$14.75
+12.2%
10.7%US$17.00US$13.00n/a6
Jun ’25US$11.06
US$14.75
+33.4%
10.7%US$17.00US$13.00n/a6
May ’25US$11.28
US$14.58
+29.3%
7.5%US$16.50US$13.00n/a6
Apr ’25US$11.75
US$14.58
+24.2%
7.5%US$16.50US$13.00n/a6
Mar ’25US$12.41
US$14.58
+17.5%
7.5%US$16.50US$13.00n/a6
Feb ’25US$13.11
US$14.58
+11.2%
7.5%US$16.50US$13.00n/a6
Jan ’25US$17.74
US$22.14
+24.8%
13.5%US$28.00US$19.00n/a7
Dec ’24US$16.27
US$22.14
+36.1%
13.5%US$28.00US$19.00US$16.547
Nov ’24US$17.99
US$27.29
+51.7%
19.2%US$36.00US$19.00US$15.027
Oct ’24US$24.43
US$32.88
+34.6%
8.0%US$36.00US$29.00US$14.648
Sep ’24US$27.17
US$33.29
+22.5%
7.7%US$36.00US$29.00US$15.717
Aug ’24US$27.87
US$26.86
-3.6%
19.3%US$35.00US$17.50US$13.477
Jul ’24US$26.34
US$26.86
+2.0%
19.3%US$35.00US$17.50US$13.147
Jun ’24US$20.68
US$22.00
+6.4%
11.4%US$25.00US$17.50US$11.066
May ’24US$17.94
US$22.00
+22.6%
11.4%US$25.00US$17.50US$11.286
Apr ’24US$18.86
US$21.93
+16.3%
9.2%US$24.00US$18.00US$11.757
Mar ’24US$18.26
US$21.93
+20.1%
9.2%US$24.00US$18.00US$12.417
Feb ’24US$17.89
US$21.93
+22.6%
9.2%US$24.00US$18.00US$13.117
Jan ’24US$18.27
US$21.00
+14.9%
8.8%US$23.00US$18.00US$17.747
Dec ’23US$20.22
US$21.00
+3.9%
8.8%US$23.00US$18.00US$16.277

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


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