Plexus (PLXS): Assessing Current Valuation Following Recent Share Price Movement

Plexus (PLXS) shares have seen some movement lately, catching the attention of investors curious about its current valuation and performance. Recent price activity places the stock in a unique position for those tracking the tech sector.

See our latest analysis for Plexus.

Plexus has steadily attracted interest as its $139.9 share price has slipped over the past month. The stock maintains a 7.93% 90-day share price return and a notable 38.3% total shareholder return over the last three years. While the short-term momentum has softened, long-term gains hint that investors remain optimistic about Plexus’ growth potential and its place in the tech sector’s evolving landscape.

If recent tech market shifts have you curious, consider broadening your search and discover See the full list for free.

With its share price below analyst targets but strong long-term performance, the question remains: is Plexus currently trading at a bargain, or are investors already accounting for every ounce of the company’s future growth potential?

Most Popular Narrative: 12% Undervalued

Plexus’s most closely tracked valuation narrative currently places its fair value at $159 per share, just above the recent closing price of $139.9. This suggests that the latest forecasts anticipate upside if the company executes as projected.

The company's increasing success in winning programs in high-margin, complex sectors such as healthcare/life sciences, aerospace, and defense (including strong defense pipeline in Europe and record sector wins) is shifting the revenue mix toward segments with higher pricing power and more stable, long-term contracts. This should positively impact both revenue consistency and net margin expansion.

Read the complete narrative.

Want to see what’s powering this target? The driving force behind this valuation includes aggressive sector expansion and future profitability forecasts that challenge industry norms. Which blockbuster financial leap is baked into these assumptions? Find out what’s fueling the optimism in the full narrative.

Result: Fair Value of $159 (UNDERVALUED)

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

However, ongoing macroeconomic uncertainty and customer demand shifts could quickly challenge Plexus’s growth outlook. This highlights the need for nimble execution going forward.

Find out about the key risks to this Plexus narrative.

Another View: DCF Suggests a Different Story

While analysts see Plexus as undervalued based on future earnings potential, our SWS DCF model takes a more cautious approach. According to our DCF estimate, Plexus shares ($139.9) actually trade above fair value ($118.47), which hints at possible downside if growth targets are not met. Which valuation should investors trust most?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Plexus for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 840 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Plexus Narrative

If the consensus doesn’t quite fit your take or you’d rather crunch the numbers yourself, you can build your own perspective from scratch in just a few minutes. Do it your way

A great starting point for your Plexus research is our analysis highlighting 4 key rewards and 1 important warning sign 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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