We’ve recently updated our valuation analysis.

Methode Electronics Valuation

Is MEI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

MEI 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/Revenue1.5x
Enterprise Value/EBITDA11.6x
PEG Ratio1.2x

Price to Earnings Ratio vs Peers

How does MEI's PE Ratio compare to its peers?

The above table shows the PE ratio for MEI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average18.8x
TTMI TTM Technologies
16.2x-1.9%US$1.6b
CTS CTS
26.2x19.2%US$1.4b
PLXS Plexus
16.5x12.4%US$2.6b
BHE Benchmark Electronics
16.2x21.0%US$961.0m
MEI Methode Electronics
17.9x14.7%US$1.7b

Price-To-Earnings vs Peers: MEI is good value based on its Price-To-Earnings Ratio (17.9x) compared to the peer average (18.8x).


Price to Earnings Ratio vs Industry

How does MEI's PE Ratio compare vs other companies in the US Electronic Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.0%
n/an/an/a

Price-To-Earnings vs Industry: MEI is expensive based on its Price-To-Earnings Ratio (17.9x) compared to the US Electronic industry average (16.7x)


Price to Earnings Ratio vs Fair Ratio

What is MEI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MEI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.9x
Fair PE Ratio19.6x

Price-To-Earnings vs Fair Ratio: MEI is good value based on its Price-To-Earnings Ratio (17.9x) compared to the estimated Fair Price-To-Earnings Ratio (19.6x).


Share Price vs Fair Value

What is the Fair Price of MEI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MEI ($46.97) is trading above our estimate of fair value ($25.06)

Significantly Below Fair Value: MEI is trading above our estimate of fair value.


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 MEI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$46.97
US$55.13
+17.4%
5.4%US$59.00US$52.00n/a4
Jan ’24US$44.37
US$54.88
+23.7%
5.9%US$59.00US$51.00n/a4
Dec ’23US$48.97
US$52.50
+7.2%
5.1%US$57.00US$50.00n/a4
Nov ’23US$42.05
US$48.00
+14.1%
14.6%US$55.00US$41.00n/a2
Oct ’23US$37.15
US$48.00
+29.2%
14.6%US$55.00US$41.00n/a2
Sep ’23US$39.36
US$50.00
+27.0%
18.0%US$59.00US$41.00n/a2
Aug ’23US$41.48
US$49.50
+19.3%
19.2%US$59.00US$40.00n/a2
Jul ’23US$36.71
US$50.00
+36.2%
18.0%US$59.00US$41.00n/a2
Jun ’23US$44.45
US$56.00
+26.0%
17.9%US$66.00US$46.00n/a2
May ’23US$44.61
US$56.00
+25.5%
17.9%US$66.00US$46.00n/a2
Apr ’23US$43.00
US$55.50
+29.1%
18.9%US$66.00US$45.00n/a2
Mar ’23US$44.05
US$58.00
+31.7%
13.8%US$66.00US$50.00n/a2
Feb ’23US$44.10
US$58.00
+31.5%
13.8%US$66.00US$50.00n/a2
Jan ’23US$49.17
US$49.00
-0.3%
0%US$49.00US$49.00US$44.371
Dec ’22US$44.82
US$48.50
+8.2%
1.0%US$49.00US$48.00US$48.972
Nov ’22US$43.73
US$48.50
+10.9%
1.0%US$49.00US$48.00US$42.052
Oct ’22US$42.41
US$48.50
+14.4%
1.0%US$49.00US$48.00US$37.152
Sep ’22US$46.43
US$50.00
+7.7%
4.0%US$52.00US$48.00US$39.362
Aug ’22US$47.83
US$50.00
+4.5%
4.0%US$52.00US$48.00US$41.482
Jul ’22US$49.97
US$50.00
+0.06%
4.0%US$52.00US$48.00US$36.712
Jun ’22US$48.87
US$48.00
-1.8%
0%US$48.00US$48.00US$44.452
May ’22US$44.93
US$48.00
+6.8%
0%US$48.00US$48.00US$44.612
Apr ’22US$42.97
US$47.50
+10.5%
1.1%US$48.00US$47.00US$43.002
Mar ’22US$40.39
US$44.00
+8.9%
4.5%US$46.00US$42.00US$44.052
Feb ’22US$38.50
US$44.00
+14.3%
4.5%US$46.00US$42.00US$44.102
Jan ’22US$38.28
US$42.00
+9.7%
0%US$42.00US$42.00US$49.172

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


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