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NeoPhotonics Valuation

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

Below Fair Value: Insufficient data to calculate NPTN's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate NPTN's fair value for valuation analysis.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for NPTN. This is calculated by dividing NPTN's market cap by their current revenue.
What is NPTN's PS Ratio?
PS Ratio	2.5x
Sales	US$348.63m
Market Cap	US$859.56m

NPTN 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/Revenue	2.4x
Enterprise Value/EBITDA	68x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for NPTN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	2.3x
PENG Penguin Solutions	0.7x	11.9%	US$913.4m
HIMX Himax Technologies	1x	6.0%	US$927.8m
AOSL Alpha and Omega Semiconductor	1.2x	6.8%	US$866.6m
CEVA CEVA	6.3x	9.5%	US$646.9m
NPTN NeoPhotonics	2.5x	17.9%	US$859.6m

Price-To-Sales vs Peers: NPTN is good value based on its Price-To-Sales Ratio (2.5x) compared to the peer average (10.5x).

Price to Sales Ratio vs Industry

How does NPTN's PS Ratio compare vs other companies in the US Semiconductor Industry?

16 Companies	Price / Sales	Estimated Growth	Market Cap
UCTT Ultra Clean Holdings	0.8x	10.5%	US$1.58b
JKS JinkoSolar Holding	0.08x	12.9%	US$1.13b
PENG Penguin Solutions	0.7x	11.9%	US$913.39m
CSIQ Canadian Solar	0.1x	13.8%	US$778.74m

16 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: NPTN is good value based on its Price-To-Sales Ratio (2.5x) compared to the US Semiconductor industry average (3.9x)

Price to Sales Ratio vs Fair Ratio

What is NPTN'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.

NPTN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2.5x
Fair PS Ratio	2.2x

Price-To-Sales vs Fair Ratio: NPTN is expensive based on its Price-To-Sales Ratio (2.5x) compared to the estimated Fair Price-To-Sales Ratio (2.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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