Applied Optoelectronics, Inc.

NasdaqGM:AAOI Stock Report

Market Cap: US$947.1m

Applied Optoelectronics Valuation

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

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

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for AAOI. This is calculated by dividing AAOI's market cap by their current revenue.
What is AAOI's PS Ratio?
PS Ratio3x
SalesUS$308.55m
Market CapUS$947.07m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for AAOI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.9x
HLIT Harmonic
1.6x2.94%US$1.1b
ITRN Ituran Location and Control
2.1x6.51%US$736.1m
DGII Digi International
3.1x3.32%US$1.3b
ADTN ADTRAN Holdings
0.7x10.79%US$663.2m
AAOI Applied Optoelectronics
3x54.00%US$947.1m

Price-To-Sales vs Peers: AAOI is expensive based on its Price-To-Sales Ratio (3x) compared to the peer average (1.9x).

Price to Sales Ratio vs Industry

How does AAOI's PS Ratio compare vs other companies in the US Communications Industry?

9 CompaniesPrice / SalesEstimated GrowthMarket Cap
TESS TESSCO Technologies
0.2xn/aUS$83.30m
CMTL Comtech Telecommunications
0.1x0.062%US$74.54m
CMBM Cambium Networks
0.06x15.14%US$10.39m
VISL Vislink Technologies
0.2xn/aUS$5.55m
AAOI 3.0xIndustry Avg. 2.0xNo. of Companies9PS01.22.43.64.86+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: AAOI is expensive based on its Price-To-Sales Ratio (3x) compared to the US Communications industry average (2x).

Price to Sales Ratio vs Fair Ratio

What is AAOI'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.

AAOI PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3x
Fair PS Ratio4.3x

Price-To-Sales vs Fair Ratio: AAOI is good value based on its Price-To-Sales Ratio (3x) compared to the estimated Fair Price-To-Sales Ratio (4.3x).

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 AAOI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$16.44
US$30.40
+84.91%
45.42%US$50.00US$13.00n/a5
Jun ’26US$15.42
US$30.40
+97.15%
45.42%US$50.00US$13.00n/a5
May ’26US$14.71
US$34.80
+136.57%
57.40%US$70.00US$13.00n/a5
Apr ’26US$15.09
US$38.20
+153.15%
48.42%US$70.00US$13.00n/a5
Mar ’26US$21.86
US$32.20
+47.30%
31.76%US$41.00US$13.00n/a5
Feb ’26US$27.92
US$34.25
+22.67%
34.57%US$44.00US$14.00n/a4
Jan ’26US$36.86
US$34.25
-7.08%
34.57%US$44.00US$14.00n/a4
Dec ’25US$41.22
US$22.38
-45.72%
22.75%US$27.50US$14.00n/a4
Nov ’25US$16.84
US$16.00
-4.99%
26.15%US$20.00US$9.00n/a4
Oct ’25US$13.32
US$16.00
+20.12%
26.15%US$20.00US$9.00n/a4
Sep ’25US$11.35
US$14.00
+23.35%
26.73%US$18.00US$9.00n/a3
Aug ’25US$8.40
US$15.33
+82.54%
16.27%US$18.00US$12.00n/a3
Jul ’25US$8.08
US$15.33
+89.77%
16.27%US$18.00US$12.00n/a3
Jun ’25US$10.49
US$15.33
+46.17%
16.27%US$18.00US$12.00US$15.423
May ’25US$9.90
US$18.00
+81.82%
9.07%US$20.00US$16.00US$14.713
Apr ’25US$13.92
US$18.00
+29.31%
9.07%US$20.00US$16.00US$15.093
Mar ’25US$15.41
US$18.00
+16.81%
9.07%US$20.00US$16.00US$21.863
Feb ’25US$16.52
US$21.67
+31.15%
5.76%US$23.00US$20.00US$27.923
Jan ’25US$19.32
US$21.00
+8.70%
4.76%US$22.00US$20.00US$36.862
Dec ’24US$16.45
US$16.75
+1.82%
19.40%US$20.00US$13.50US$41.222
Nov ’24US$7.72
US$15.75
+104.02%
26.98%US$20.00US$11.50US$16.842
Oct ’24US$10.97
US$15.75
+43.57%
26.98%US$20.00US$11.50US$13.322
Sep ’24US$13.94
US$15.75
+12.98%
26.98%US$20.00US$11.50US$11.352
Aug ’24US$7.03
US$6.25
-11.10%
60.00%US$10.00US$2.50US$8.402
Jul ’24US$5.96
US$6.25
+4.87%
60.00%US$10.00US$2.50US$8.082
Jun ’24US$2.21
US$3.75
+69.68%
33.33%US$5.00US$2.50US$10.492
AnalystConsensusTarget
Consensus Narrative from 5 Analysts
US$30.40
Fair Value
45.9% undervalued intrinsic discount
5
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/06/10 22:58
End of Day Share Price 2025/06/10 00:00
Earnings2025/03/31
Annual Earnings2024/12/31

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.

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 Github.

Analyst Sources

Applied Optoelectronics, Inc. is covered by 14 analysts. 5 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullArgus Research Company
Ku KangB. Riley Securities, Inc.
Richard ShannonCraig-Hallum Capital Group LLC