IPG Photonics Corporation

LSE:0J86 Stock Report

Market Cap: US$3.3b

IPG Photonics Valuation

Is 0J86 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 0J86 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0J86 ($75.89) is trading below our estimate of fair value ($87.88)

Significantly Below Fair Value: 0J86 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0J86?

Key metric: As 0J86 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 0J86. This is calculated by dividing 0J86's market cap by their current revenue.
What is 0J86's PS Ratio?
PS Ratio3.2x
SalesUS$1.04b
Market CapUS$3.30b

Price to Sales Ratio vs Peers

How does 0J86's PS Ratio compare to its peers?

The above table shows the PS ratio for 0J86 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.2x
GHH Gooch & Housego
1x5.8%UK£130.4m
RSW Renishaw
3.5x5.3%UK£2.4b
SXS Spectris
1.8x5.8%UK£2.4b
OXIG Oxford Instruments
2.5x5.3%UK£1.2b
0J86 IPG Photonics
3.2x7.4%US$3.3b

Price-To-Sales vs Peers: 0J86 is expensive based on its Price-To-Sales Ratio (3.2x) compared to the peer average (2.2x).

Price to Sales Ratio vs Industry

How does 0J86's PS Ratio compare vs other companies in the GB Electronic Industry?

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
MIDW Midwich Group
0.2x3.2%US$367.67m
NAR Northamber
0.1xn/aUS$9.79m
NWT Newmark Security
0.3xn/aUS$8.22m
HDT Holders Technology
0.2xn/aUS$2.71m
0J86 3.2xIndustry Avg. 1.6xNo. of Companies7PS01.22.43.64.86+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 0J86 is expensive based on its Price-To-Sales Ratio (3.2x) compared to the UK Electronic industry average (1.6x).

Price to Sales Ratio vs Fair Ratio

What is 0J86'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.

0J86 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.2x
Fair PS Ratio2.1x

Price-To-Sales vs Fair Ratio: 0J86 is expensive based on its Price-To-Sales Ratio (3.2x) compared to the estimated Fair Price-To-Sales Ratio (2.1x).

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 0J86 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$75.89
US$85.40
+12.5%
21.7%US$100.00US$50.00n/a5
Dec ’25US$78.57
US$86.17
+9.7%
19.8%US$100.00US$50.00n/a6
Nov ’25US$82.73
US$86.17
+4.2%
19.8%US$100.00US$50.00n/a6
Oct ’25US$71.94
US$84.67
+17.7%
20.1%US$100.00US$50.00n/a6
Sep ’25US$68.71
US$87.17
+26.9%
20.6%US$100.00US$50.00n/a6
Aug ’25US$76.42
US$87.17
+14.1%
20.6%US$100.00US$50.00n/a6
Jul ’25US$83.95
US$100.88
+20.2%
17.2%US$127.00US$68.00n/a8
Jun ’25US$85.92
US$103.86
+20.9%
20.2%US$130.00US$68.00n/a7
May ’25US$83.03
US$105.74
+27.4%
17.5%US$130.00US$74.00n/a8
Apr ’25US$91.25
US$110.59
+21.2%
17.7%US$130.70US$74.00n/a8
Mar ’25US$88.00
US$110.59
+25.7%
17.7%US$130.70US$74.00n/a8
Feb ’25US$98.52
US$124.34
+26.2%
17.2%US$170.00US$91.00n/a8
Jan ’25US$108.90
US$122.10
+12.1%
19.5%US$170.00US$86.00n/a7
Dec ’24US$97.29
US$120.67
+24.0%
21.1%US$170.00US$86.00US$78.576
Nov ’24US$85.17
US$121.57
+42.7%
19.5%US$170.00US$86.00US$82.737
Oct ’24US$101.24
US$131.57
+30.0%
15.0%US$170.00US$107.00US$71.947
Sep ’24US$108.54
US$131.57
+21.2%
15.0%US$170.00US$107.00US$68.717
Aug ’24US$108.68
US$138.14
+27.1%
12.8%US$170.00US$112.00US$76.427
Jul ’24US$135.12
US$138.14
+2.2%
12.8%US$170.00US$112.00US$83.957
Jun ’24US$114.09
US$132.83
+16.4%
9.8%US$152.00US$112.00US$85.926
May ’24US$109.92
US$131.50
+19.6%
14.2%US$160.00US$105.00US$83.036
Apr ’24US$114.63
US$131.50
+14.7%
14.2%US$160.00US$105.00US$91.256
Mar ’24US$125.57
US$127.14
+1.3%
16.0%US$160.00US$101.00US$88.007
Feb ’24US$113.22
US$109.43
-3.4%
10.1%US$130.00US$95.00US$98.527
Jan ’24n/a
US$109.00
0%
11.8%US$130.00US$85.00US$108.908
Dec ’23US$90.35
US$109.00
+20.6%
11.8%US$130.00US$85.00US$97.298

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

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/27 14:02
End of Day Share Price 2024/12/26 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

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 here.

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 .

Analyst Sources

IPG Photonics Corporation is covered by 31 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Christopher MuseBarclays
Mark MillerBenchmark Company
Andrew DeGasperiBerenberg