Harmonic Inc.

LSE:0J38 Stock Report

Market Cap: US$1.4b

Harmonic Valuation

Is 0J38 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 0J38 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0J38 ($12.35) is trading above our estimate of fair value ($2.07)

Significantly Below Fair Value: 0J38 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0J38?

Key metric: As 0J38 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0J38. This is calculated by dividing 0J38's market cap by their current earnings.
What is 0J38's PE Ratio?
PE Ratio17x
EarningsUS$84.94m
Market CapUS$1.44b

Price to Earnings Ratio vs Peers

How does 0J38's PE Ratio compare to its peers?

The above table shows the PE ratio for 0J38 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average44.8x
SPT Spirent Communications
92.9x40.5%UK£980.5m
FTC Filtronic
52.3xn/aUK£164.2m
MWE M.T.I Wireless Edge
11.7x3.5%UK£38.8m
OXIG Oxford Instruments
22.3x10.2%UK£1.2b
0J38 Harmonic
17x36.7%US$1.4b

Price-To-Earnings vs Peers: 0J38 is good value based on its Price-To-Earnings Ratio (17x) compared to the peer average (44.8x).

Price to Earnings Ratio vs Industry

How does 0J38's PE Ratio compare vs other companies in the European Communications Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0J38 17.0xIndustry Avg. 31.4xNo. of Companies7PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0J38 is good value based on its Price-To-Earnings Ratio (17x) compared to the Global Communications industry average (31.4x).

Price to Earnings Ratio vs Fair Ratio

What is 0J38'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.

0J38 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17x
Fair PE Ratio45.8x

Price-To-Earnings vs Fair Ratio: 0J38 is good value based on its Price-To-Earnings Ratio (17x) compared to the estimated Fair Price-To-Earnings Ratio (45.8x).

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 0J38 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$12.35
US$14.93
+20.9%
13.0%US$18.00US$12.50n/a7
Nov ’25US$10.91
US$14.93
+36.8%
13.0%US$18.00US$12.50n/a7
Oct ’25US$14.00
US$16.57
+18.4%
13.6%US$20.00US$13.00n/a7
Sep ’25US$14.56
US$16.57
+13.8%
13.6%US$20.00US$13.00n/a7
Aug ’25US$14.11
US$16.57
+17.4%
13.6%US$20.00US$13.00n/a7
Jul ’25US$11.77
US$15.57
+32.3%
11.8%US$18.00US$13.00n/a7
Jun ’25US$12.04
US$15.57
+29.3%
11.8%US$18.00US$13.00n/a7
May ’25US$11.21
US$16.00
+42.8%
10.2%US$18.00US$14.00n/a6
Apr ’25US$13.43
US$16.00
+19.1%
10.2%US$18.00US$14.00n/a6
Mar ’25US$13.39
US$16.00
+19.5%
10.2%US$18.00US$14.00n/a6
Feb ’25US$12.57
US$16.00
+27.3%
10.2%US$18.00US$14.00n/a6
Jan ’25US$12.89
US$16.83
+30.6%
12.1%US$19.00US$14.00n/a6
Dec ’24US$11.19
US$16.58
+48.2%
11.1%US$18.00US$14.00n/a6
Nov ’24US$10.40
US$16.17
+55.4%
11.5%US$18.00US$14.00US$10.916
Oct ’24US$9.64
US$18.33
+90.2%
7.5%US$20.00US$16.00US$14.006
Sep ’24US$10.52
US$18.33
+74.2%
7.5%US$20.00US$16.00US$14.566
Aug ’24US$11.73
US$18.17
+54.9%
9.2%US$20.00US$15.00US$14.116
Jul ’24US$16.32
US$20.83
+27.7%
10.5%US$23.00US$17.00US$11.776
Jun ’24US$17.48
US$20.83
+19.2%
10.5%US$23.00US$17.00US$12.046
May ’24US$13.84
US$20.00
+44.5%
9.1%US$23.00US$17.00US$11.216
Apr ’24US$14.17
US$19.67
+38.8%
9.1%US$23.00US$17.00US$13.436
Mar ’24US$13.01
US$19.17
+47.4%
5.6%US$20.00US$17.00US$13.396
Feb ’24US$13.41
US$19.17
+43.0%
5.6%US$20.00US$17.00US$12.576
Jan ’24US$13.23
US$17.71
+33.9%
11.2%US$20.00US$14.25US$12.896
Dec ’23US$15.00
US$17.71
+18.1%
11.2%US$20.00US$14.25US$11.196
Nov ’23US$13.79
US$17.71
+28.4%
11.2%US$20.00US$14.25US$10.406

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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