Navitas Semiconductor (NVTS): Revisiting Valuation After a Sharp Weekly Pullback and Strong One-Year Gains

Navitas Semiconductor (NVTS) has quietly delivered huge gains over the past year, even as the stock slipped almost 20% in the past week, inviting a closer look at what might come next.

See our latest analysis for Navitas Semiconductor.

That recent 7 day share price drop of 19.72% looks more like a sharp pause than a trend change, given Navitas still boasts a year to date share price return of 111.17% and a 1 year total shareholder return of 162.28%. This suggests momentum has cooled but not disappeared.

If Navitas has put semiconductors on your radar, it could be worth seeing what other names are setting up interesting stories across high growth tech and AI stocks.

With the stock still trading below analyst targets but backed by fast growing revenues and steep losses, is Navitas a misunderstood compounder at a temporary discount, or is the market already pricing in its future upside?

Most Popular Narrative: 10.9% Undervalued

With Navitas Semiconductor last closing at $7.37 against a narrative fair value of $8.28, the story leans toward upside if bold execution plays out.

The analysts have a consensus price target of $6.738 for Navitas Semiconductor based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $8.0, and the most bearish reporting a price target of just $4.4.

Read the complete narrative.

Want to see how fast growing revenues, shifting margins and an aggressive future earnings multiple combine into that fair value story? The forecasts behind it may surprise you.

Result: Fair Value of $8.28 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, softer demand in key end markets and any delays converting design wins into revenue could challenge the upbeat long term narrative around Navitas.

Find out about the key risks to this Navitas Semiconductor narrative.

Another View, Rich Multiples Tell a Different Story

While the narrative fair value suggests upside, Navitas trades at a price to sales ratio of 29.9 times, far above the US semiconductor industry at 5.1 times and peers at 1.5 times, and even its fair ratio of 9.6 times. Is investors optimism already overextended?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Navitas Semiconductor Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a complete thesis in just minutes with Do it your way.

A great starting point for your Navitas Semiconductor research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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