IPG Photonics Corporation

NasdaqGS:IPGP Stock Report

Market Cap: US$3.4b

IPG Photonics Valuation

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

Below Fair Value: IPGP ($77.79) is trading below our estimate of fair value ($86.55)

Significantly Below Fair Value: IPGP is trading below fair value, but not by a significant amount.


Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for IPGP. This is calculated by dividing IPGP's market cap by their current revenue.
What is IPGP's PS Ratio?
PS Ratio3.2x
SalesUS$1.04b
Market CapUS$3.36b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for IPGP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.5x
TTMI TTM Technologies
1x6.1%US$2.4b
SANM Sanmina
0.6x7.5%US$4.3b
PLXS Plexus
1.1x7.5%US$4.4b
CTS CTS
3.2x5.8%US$1.6b
IPGP IPG Photonics
3.2x7.4%US$3.4b

Price-To-Sales vs Peers: IPGP is expensive based on its Price-To-Sales Ratio (3.2x) compared to the peer average (1.5x).


Price to Sales Ratio vs Industry

How does IPGP's PS Ratio compare vs other companies in the US Electronic Industry?

32 CompaniesPrice / SalesEstimated GrowthMarket Cap
SNX TD SYNNEX
0.2x5.3%US$10.11b
ARW Arrow Electronics
0.2x2.7%US$6.27b
INGM Ingram Micro Holding
0.1x3.5%US$5.17b
AVT Avnet
0.2x3.7%US$4.73b
IPGP 3.2xIndustry Avg. 2.0xNo. of Companies32PS0246810+
32 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: IPGP is expensive based on its Price-To-Sales Ratio (3.2x) compared to the US Electronic industry average (2x).


Price to Sales Ratio vs Fair Ratio

What is IPGP'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.

IPGP PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.2x
Fair PS Ratio1.5x

Price-To-Sales vs Fair Ratio: IPGP is expensive based on its Price-To-Sales Ratio (3.2x) compared to the estimated Fair Price-To-Sales Ratio (1.5x).


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 IPGP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$77.79
US$86.17
+10.8%
19.8%US$100.00US$50.00n/a6
Nov ’25US$82.29
US$86.17
+4.7%
19.8%US$100.00US$50.00n/a6
Oct ’25US$71.85
US$84.67
+17.8%
20.1%US$100.00US$50.00n/a6
Sep ’25US$68.37
US$87.17
+27.5%
20.6%US$100.00US$50.00n/a6
Aug ’25US$77.08
US$87.17
+13.1%
20.6%US$100.00US$50.00n/a6
Jul ’25US$83.33
US$100.88
+21.1%
17.2%US$127.00US$68.00n/a8
Jun ’25US$86.73
US$103.86
+19.7%
20.2%US$130.00US$68.00n/a7
May ’25US$83.55
US$105.74
+26.6%
17.5%US$130.00US$74.00n/a8
Apr ’25US$90.16
US$110.59
+22.7%
17.7%US$130.70US$74.00n/a8
Mar ’25US$87.67
US$110.59
+26.1%
17.7%US$130.70US$74.00n/a8
Feb ’25US$99.15
US$124.34
+25.4%
17.2%US$170.00US$91.00n/a8
Jan ’25US$108.54
US$122.10
+12.5%
19.5%US$170.00US$86.00n/a7
Dec ’24US$97.27
US$120.67
+24.1%
21.1%US$170.00US$86.00n/a6
Nov ’24US$87.02
US$121.57
+39.7%
19.5%US$170.00US$86.00US$82.297
Oct ’24US$101.54
US$131.57
+29.6%
15.0%US$170.00US$107.00US$71.857
Sep ’24US$108.11
US$131.57
+21.7%
15.0%US$170.00US$107.00US$68.377
Aug ’24US$108.36
US$138.14
+27.5%
12.8%US$170.00US$112.00US$77.087
Jul ’24US$135.82
US$138.14
+1.7%
12.8%US$170.00US$112.00US$83.337
Jun ’24US$110.42
US$132.83
+20.3%
9.8%US$152.00US$112.00US$86.736
May ’24US$117.93
US$131.50
+11.5%
14.2%US$160.00US$105.00US$83.556
Apr ’24US$123.31
US$131.50
+6.6%
14.2%US$160.00US$105.00US$90.166
Mar ’24US$124.64
US$127.14
+2.0%
16.0%US$160.00US$101.00US$87.677
Feb ’24US$114.80
US$109.43
-4.7%
10.1%US$130.00US$95.00US$99.157
Jan ’24US$94.67
US$109.00
+15.1%
11.8%US$130.00US$85.00US$108.548
Dec ’23US$92.78
US$109.00
+17.5%
11.8%US$130.00US$85.00US$97.278
Nov ’23US$85.48
US$125.00
+46.2%
18.8%US$165.00US$85.00US$87.027

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


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