SMART Global Holdings, Inc.

NasdaqGS:SGH Stock Report

Market Cap: US$959.1m

SMART Global Holdings Valuation

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

Below Fair Value: SGH ($18.34) is trading above our estimate of fair value ($7.33)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SGH 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/Revenue1.1x
Enterprise Value/EBITDA11.1x
PEG Ratio0.6x

Price to Earnings Ratio vs Peers

How does SGH's PE Ratio compare to its peers?

The above table shows the PE ratio for SGH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.5x
HIMX Himax Technologies
17.4x13.9%US$880.6m
CSIQ Canadian Solar
3.6x19.3%US$979.2m
SIMO Silicon Motion Technology
46.3x43.9%US$2.5b
JKS JinkoSolar Holding
2.6x5.6%US$1.2b
SGH SMART Global Holdings
48.4x82.6%US$959.1m

Price-To-Earnings vs Peers: SGH is expensive based on its Price-To-Earnings Ratio (48.4x) compared to the peer average (17.5x).


Price to Earnings Ratio vs Industry

How does SGH's PE Ratio compare vs other companies in the US Semiconductor Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a24.0%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a24.0%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: SGH is expensive based on its Price-To-Earnings Ratio (48.4x) compared to the US Semiconductor industry average (28x).


Price to Earnings Ratio vs Fair Ratio

What is SGH'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.

SGH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio48.4x
Fair PE Ratio127.8x

Price-To-Earnings vs Fair Ratio: SGH is good value based on its Price-To-Earnings Ratio (48.4x) compared to the estimated Fair Price-To-Earnings Ratio (127.8x).


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 SGH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$18.34
US$27.70
+51.0%
14.0%US$35.00US$24.00n/a5
Apr ’25US$26.38
US$26.50
+0.5%
14.6%US$35.00US$24.00n/a6
Mar ’25US$22.52
US$26.50
+17.7%
14.6%US$35.00US$24.00n/a6
Feb ’25US$19.62
US$26.50
+35.1%
14.6%US$35.00US$24.00n/a6
Jan ’25US$18.93
US$26.17
+38.2%
15.8%US$35.00US$22.00n/a6
Dec ’24US$16.48
US$26.17
+58.8%
15.8%US$35.00US$22.00n/a6
Nov ’24US$13.63
US$26.17
+92.0%
15.8%US$35.00US$22.00n/a6
Oct ’24US$24.35
US$33.17
+36.2%
7.3%US$37.00US$30.00n/a6
Sep ’24US$26.02
US$33.17
+27.5%
7.3%US$37.00US$30.00n/a6
Aug ’24US$26.90
US$33.17
+23.3%
7.3%US$37.00US$30.00n/a6
Jul ’24US$29.01
US$33.17
+14.3%
7.3%US$37.00US$30.00n/a6
Jun ’24US$22.26
US$24.83
+11.6%
26.4%US$38.00US$19.00n/a6
May ’24US$15.59
US$24.83
+59.3%
26.4%US$38.00US$19.00n/a6
Apr ’24US$17.24
US$25.40
+47.3%
22.9%US$35.00US$19.00US$26.385
Mar ’24US$16.85
US$24.50
+45.4%
23.2%US$35.00US$19.00US$22.526
Feb ’24US$18.02
US$24.50
+36.0%
23.2%US$35.00US$19.00US$19.626
Jan ’24US$14.88
US$24.00
+61.3%
32.2%US$38.00US$15.00US$18.936
Dec ’23US$17.18
US$24.00
+39.7%
32.2%US$38.00US$15.00US$16.486
Nov ’23US$14.11
US$24.00
+70.1%
32.2%US$38.00US$15.00US$13.636
Oct ’23US$15.87
US$33.17
+109.0%
22.7%US$45.00US$22.00US$24.356
Sep ’23US$17.57
US$33.83
+92.6%
21.3%US$45.00US$22.00US$26.026
Aug ’23US$19.51
US$33.83
+73.4%
21.3%US$45.00US$22.00US$26.906
Jul ’23US$16.21
US$33.83
+108.7%
21.3%US$45.00US$22.00US$29.016
Jun ’23US$24.68
US$43.33
+75.6%
20.7%US$60.00US$30.00US$22.266
May ’23US$22.66
US$43.33
+91.2%
20.7%US$60.00US$30.00US$15.596
Apr ’23US$24.65
US$42.08
+70.7%
11.1%US$50.00US$35.00US$17.246

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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