Ingram Micro Holding (INGM): Evaluating Valuation as AI-Powered Sales Briefing Assistant Signals Strategic Tech Leap

Ingram Micro Holding (INGM) just unveiled its new Sales Briefing Assistant, powered by Google’s Gemini large language models. This AI-driven tool aims to boost sales enablement by delivering real-time, context-aware market insights directly to teams.

See our latest analysis for Ingram Micro Holding.

After a stretch of steadiness, Ingram Micro Holding’s 1-month share price return climbed 6.2%, with momentum accelerating as the company doubles down on innovation, such as its new AI-powered Sales Briefing Assistant. Still, investors weighing the bigger picture should note that its total shareholder return over the past year sits at -6.9%, highlighting both short-term optimism and the need for a longer-term lens.

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With shares rebounding and the latest AI strides grabbing headlines, investors now face a pivotal question: is Ingram Micro Holding trading below its true value, or has the market already factored in the potential for future growth?

Price-to-Earnings of 19.4x: Is it justified?

Based on its preferred price-to-earnings (P/E) multiple of 19.4x, Ingram Micro Holding trades at a discount to the broader US Electronic industry, which averages 25.5x. The last close price stands at $22.10, offering an entry point below many sector peers.

The price-to-earnings ratio measures what investors are willing to pay today for a dollar of current or future company earnings. For distribution leaders like Ingram Micro Holding, a strong P/E can be a sign of optimism about consistent profitability, future growth, or market leadership.

In this case, the company’s P/E both compares favorably to the wider industry and is meaningfully lower than the estimated fair value P/E of 35.4x. This sizable gap underscores market caution but also hints that shares could re-rate higher if expectations improve or execution continues to deliver strong profit growth. The current P/E could be seen as conservative, given analyst forecasts of robust earnings expansion ahead and the company’s seasoned management team.

The divergence between the fair P/E and the actual P/E invites a deeper look at what could drive market sentiment. If investor conviction returns, there is significant room for multiple expansion toward fair value levels.

Explore the SWS fair ratio for Ingram Micro Holding

Result: Price-to-Earnings of 19.4x (UNDERVALUED)

However, slower annual revenue growth or unexpected shifts in tech demand could limit upside. This reminds investors that optimism should be tempered with caution.

Find out about the key risks to this Ingram Micro Holding narrative.

Another View: What Does Our DCF Model Say?

Looking beyond earnings multiples, our SWS DCF model values Ingram Micro Holding at $40.48 per share, compared to its recent $22.10 close. This suggests the shares could be trading well below their intrinsic value. Why is there such a wide gap between the models, and which one should investors trust?

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 Ingram Micro Holding 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 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 Ingram Micro Holding Narrative

If you see things differently or want to shape your own perspective, you can dive in and craft a personal narrative in just a few minutes. Do it your way

A great starting point for your Ingram Micro Holding research is our analysis highlighting 2 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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