Spirent Communications Valuation

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

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: SPNU.F ($2.46) is trading above our estimate of fair value ($0.84)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SPNU.F?

Key metric: As SPNU.F is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SPNU.F. This is calculated by dividing SPNU.F's market cap by their current earnings.
What is SPNU.F's PE Ratio?
PE Ratio	92.8x
Earnings	US$13.30m
Market Cap	US$1.23b

SPNU.F 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/Revenue	2.5x
Enterprise Value/EBITDA	27.6x
PEG Ratio	2.3x

Price to Earnings Ratio vs Peers

How does SPNU.F's PE Ratio compare to its peers?

The above table shows the PE ratio for SPNU.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	29.4x
HLIT Harmonic	17.1x	36.7%	US$1.5b
DGII Digi International	53.6x	32.3%	US$1.2b
NTGR NETGEAR	35.7x	n/a	US$699.1m
ITRN Ituran Location and Control	11.1x	5.5%	US$576.5m
SPNU.F Spirent Communications	92.8x	40.5%	US$984.5m

Price-To-Earnings vs Peers: SPNU.F is expensive based on its Price-To-Earnings Ratio (92.8x) compared to the peer average (29.4x).

Price to Earnings Ratio vs Industry

How does SPNU.F's PE Ratio compare vs other companies in the US Communications Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap
ATVK Ameritek Ventures	3.4x	n/a	US$429.26k
NIHK Video River Networks	0.2x	n/a	US$310.03k

No more companies available in this PE range

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: SPNU.F is expensive based on its Price-To-Earnings Ratio (92.8x) compared to the US Communications industry average (24.2x).

Price to Earnings Ratio vs Fair Ratio

What is SPNU.F'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.

SPNU.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	92.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SPNU.F's Price-To-Earnings Fair Ratio for valuation analysis.

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 SPNU.F forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	n/a	US$2.62 0%	8.2%	US$2.91	US$2.39	n/a	3
Nov ’25	US$2.12	US$2.58 +21.5%	8.2%	US$2.86	US$2.35	n/a	3
Oct ’25	US$2.25	US$2.58 +14.5%	8.2%	US$2.86	US$2.35	n/a	3
Sep ’25	n/a	US$2.58 0%	8.2%	US$2.86	US$2.35	n/a	3
Aug ’25	n/a	US$2.65 0%	11.2%	US$3.06	US$2.36	n/a	3
Jul ’25	US$2.35	US$2.65 +13.2%	11.2%	US$3.06	US$2.36	n/a	3
Jun ’25	n/a	US$2.65 0%	11.2%	US$3.06	US$2.36	n/a	3
May ’25	US$2.43	US$2.75 +13.5%	9.3%	US$3.01	US$2.50	n/a	2
Apr ’25	US$2.47	US$2.65 +7.3%	16.4%	US$3.08	US$2.22	n/a	2
Mar ’25	US$1.43	US$1.98 +38.6%	15.7%	US$2.48	US$1.53	n/a	5
Feb ’25	US$1.51	US$1.98 +31.5%	15.7%	US$2.48	US$1.53	n/a	5
Jan ’25	US$1.66	US$1.93 +16.5%	20.5%	US$2.47	US$1.26	n/a	5
Dec ’24	US$1.35	US$1.69 +25.5%	29.4%	US$2.48	US$1.21	n/a	6
Nov ’24	n/a	US$1.63 0%	29.4%	US$2.38	US$1.16	US$2.12	6
Oct ’24	n/a	US$2.90 0%	27.0%	US$4.31	US$1.90	US$2.25	7
Sep ’24	US$1.93	US$2.90 +50.2%	27.0%	US$4.31	US$1.90	n/a	7
Aug ’24	n/a	US$3.06 0%	22.9%	US$4.47	US$2.23	n/a	7
Jul ’24	US$2.20	US$2.90 +31.6%	22.9%	US$4.22	US$2.11	US$2.35	7
Jun ’24	n/a	US$2.94 0%	21.4%	US$4.25	US$2.12	n/a	8
May ’24	n/a	US$2.93 0%	21.4%	US$4.24	US$2.12	US$2.43	8
Apr ’24	US$2.11	US$2.91 +37.8%	21.0%	US$4.19	US$2.15	US$2.47	8
Mar ’24	US$2.62	US$3.43 +30.9%	18.3%	US$4.34	US$2.53	US$1.43	8
Feb ’24	US$2.64	US$3.43 +29.9%	18.3%	US$4.34	US$2.53	US$1.51	8
Jan ’24	US$3.15	US$3.50 +11.1%	18.0%	US$4.51	US$2.63	US$1.66	6
Dec ’23	US$3.29	US$3.50 +6.4%	18.0%	US$4.51	US$2.63	US$1.35	6
Nov ’23	n/a	US$3.35 0%	17.9%	US$4.30	US$2.51	n/a	6

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

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