We’ve recently updated our valuation analysis.

Illumina Valuation

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

[object Object] Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

ILMN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue7.6x
Enterprise Value/EBITDA63x
PEG Ration/a

Price to Sales Ratio vs Peers

How does ILMN's PS Ratio compare to its peers?

The above table shows the PS ratio for ILMN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average6.3x
MTD Mettler-Toledo International
8.5x4.5%US$33.1b
IQV IQVIA Holdings
2.8x7.7%US$40.4b
A Agilent Technologies
6.7x5.1%US$45.9b
WAT Waters
7x4.6%US$20.6b
ILMN Illumina
7.3x13.3%US$34.4b

Price-To-Sales vs Peers: ILMN is expensive based on its Price-To-Sales Ratio (7.3x) compared to the peer average (6.3x).


Price to Earnings Ratio vs Industry

How does ILMN's PE Ratio compare vs other companies in the US Life Sciences Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.1%
n/an/an/a

Price-To-Sales vs Industry: ILMN is expensive based on its Price-To-Sales Ratio (7.3x) compared to the US Life Sciences industry average (4.3x)


Price to Sales Ratio vs Fair Ratio

What is ILMN'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.

ILMN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio7.3x
Fair PS Ratio7x

Price-To-Sales vs Fair Ratio: ILMN is expensive based on its Price-To-Sales Ratio (7.3x) compared to the estimated Fair Price-To-Sales Ratio (7x).


Share Price vs Fair Value

What is the Fair Price of ILMN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ILMN ($218.76) is trading below our estimate of fair value ($357.96)

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


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 ILMN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$218.76
US$258.00
+17.9%
19.3%US$350.00US$160.00n/a16
Nov ’23US$219.13
US$260.00
+18.7%
18.9%US$340.00US$175.00n/a16
Oct ’23US$190.79
US$259.38
+35.9%
21.1%US$380.00US$175.00n/a16
Sep ’23US$200.62
US$251.56
+25.4%
25.2%US$380.00US$130.00n/a16
Aug ’23US$215.61
US$308.25
+43.0%
30.1%US$480.00US$150.00n/a16
Jul ’23US$191.04
US$359.13
+88.0%
20.7%US$520.00US$249.00n/a16
Jun ’23US$235.20
US$359.00
+52.6%
20.7%US$520.00US$249.00n/a16
May ’23US$296.65
US$423.82
+42.9%
14.5%US$562.00US$350.00n/a17
Apr ’23US$363.90
US$424.41
+16.6%
14.3%US$562.00US$350.00n/a17
Mar ’23US$330.25
US$424.41
+28.5%
14.3%US$562.00US$350.00n/a17
Feb ’23US$356.45
US$432.83
+21.4%
13.7%US$570.00US$370.00n/a18
Jan ’23US$380.44
US$440.38
+15.8%
14.6%US$570.00US$365.00n/a16
Dec ’22US$357.66
US$440.38
+23.1%
14.6%US$570.00US$365.00US$220.8616
Nov ’22US$416.80
US$455.00
+9.2%
15.1%US$555.00US$343.00US$219.1317
Oct ’22US$394.84
US$461.18
+16.8%
14.9%US$555.00US$343.00US$190.7917
Sep ’22US$463.02
US$465.79
+0.6%
14.8%US$560.00US$343.00US$200.6219
Aug ’22US$495.75
US$423.68
-14.5%
15.3%US$520.00US$325.00US$215.6119
Jul ’22US$470.66
US$416.32
-11.5%
15.4%US$520.00US$300.00US$191.0419
Jun ’22US$407.45
US$414.21
+1.7%
14.9%US$520.00US$300.00US$235.2019
May ’22US$392.84
US$408.12
+3.9%
15.5%US$520.00US$300.00US$296.6517
Apr ’22US$385.04
US$403.41
+4.8%
19.6%US$570.00US$275.00US$363.9017
Mar ’22US$446.50
US$412.24
-7.7%
21.1%US$570.00US$275.00US$330.2517
Feb ’22US$443.38
US$338.38
-23.7%
18.2%US$450.00US$250.00US$356.4516
Jan ’22US$370.00
US$321.59
-13.1%
16.1%US$415.00US$250.00US$380.4417
Dec ’21US$334.34
US$303.88
-9.1%
12.5%US$380.00US$250.00US$357.6616

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


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