AAOI Relative Valuation
AAOI's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AAOI is overvalued; if below, it's undervalued.
Historical Valuation
Applied Optoelectronics Inc (AAOI) is now in the Overvalued zone, suggesting that its current forward PS ratio of 4.10 is considered Overvalued compared with the five-year average of 17.56. The fair price of Applied Optoelectronics Inc (AAOI) is between 9.19 to 22.08 according to relative valuation methord. Compared to the current price of 33.98 USD , Applied Optoelectronics Inc is Overvalued By 53.86%.
Relative Value
Fair Zone
9.19-22.08
Current Price：33.98
53.86%
Overvalued
164.66
PE
1Y
3Y
5Y
58.07
EV/EBITDA
Applied Optoelectronics Inc. (AAOI) has a current EV/EBITDA of 58.07. The 5-year average EV/EBITDA is -30.54. The thresholds are as follows: Strongly Undervalued below -432.30, Undervalued between -432.30 and -231.42, Fairly Valued between 170.33 and -231.42, Overvalued between 170.33 and 371.21, and Strongly Overvalued above 371.21. The current Forward EV/EBITDA of 58.07 falls within the Historic Trend Line -Fairly Valued range.
141.26
EV/EBIT
Applied Optoelectronics Inc. (AAOI) has a current EV/EBIT of 141.26. The 5-year average EV/EBIT is -64.60. The thresholds are as follows: Strongly Undervalued below -825.15, Undervalued between -825.15 and -444.88, Fairly Valued between 315.67 and -444.88, Overvalued between 315.67 and 695.95, and Strongly Overvalued above 695.95. The current Forward EV/EBIT of 141.26 falls within the Historic Trend Line -Fairly Valued range.
4.10
PS
Applied Optoelectronics Inc. (AAOI) has a current PS of 4.10. The 5-year average PS is 1.30. The thresholds are as follows: Strongly Undervalued below -0.64, Undervalued between -0.64 and 0.33, Fairly Valued between 2.27 and 0.33, Overvalued between 2.27 and 3.25, and Strongly Overvalued above 3.25. The current Forward PS of 4.10 falls within the Strongly Overvalued range.
0.00
P/OCF
Applied Optoelectronics Inc. (AAOI) has a current P/OCF of 0.00. The 5-year average P/OCF is -5.16. The thresholds are as follows: Strongly Undervalued below -44.98, Undervalued between -44.98 and -25.07, Fairly Valued between 14.75 and -25.07, Overvalued between 14.75 and 34.66, and Strongly Overvalued above 34.66. The current Forward P/OCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.
-18.90
P/FCF
Applied Optoelectronics Inc. (AAOI) has a current P/FCF of -18.90. The 5-year average P/FCF is 2.68. The thresholds are as follows: Strongly Undervalued below -113.68, Undervalued between -113.68 and -55.50, Fairly Valued between 60.87 and -55.50, Overvalued between 60.87 and 119.05, and Strongly Overvalued above 119.05. The current Forward P/FCF of -18.90 falls within the Historic Trend Line -Fairly Valued range.
Applied Optoelectronics Inc (AAOI) has a current Price-to-Book (P/B) ratio of 4.82. Compared to its 3-year average P/B ratio of 2.87 , the current P/B ratio is approximately 67.98% higher. Relative to its 5-year average P/B ratio of 1.93, the current P/B ratio is about 149.24% higher. Applied Optoelectronics Inc (AAOI) has a Forward Free Cash Flow (FCF) yield of approximately -11.98%. Compared to its 3-year average FCF yield of -13.99%, the current FCF yield is approximately -14.34% lower. Relative to its 5-year average FCF yield of -17.12% , the current FCF yield is about -29.99% lower.
4.82
P/B
Median3y
2.87
Median5y
1.93
-11.98
FCF Yield
Median3y
-13.99
Median5y
-17.12
Competitors Valuation Multiple
The average P/S ratio for AAOI's competitors is 3.67, providing a benchmark for relative valuation. Applied Optoelectronics Inc Corp (AAOI) exhibits a P/S ratio of 4.10, which is 11.59% above the industry average. Given its robust revenue growth of 82.08%, this premium appears sustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of AAOI increased by 36.30% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 65.15M to 118.63M.
The secondary factor is the P/E Change, contributed -1.25%to the performance.
Overall, the performance of AAOI in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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Frequently Asked Questions
Is Applied Optoelectronics Inc (AAOI) currently overvalued or undervalued?
Applied Optoelectronics Inc (AAOI) is now in the Overvalued zone, suggesting that its current forward PS ratio of 4.10 is considered Overvalued compared with the five-year average of 17.56. The fair price of Applied Optoelectronics Inc (AAOI) is between 9.19 to 22.08 according to relative valuation methord. Compared to the current price of 33.98 USD , Applied Optoelectronics Inc is Overvalued By 53.86% .
What is Applied Optoelectronics Inc (AAOI) fair value?
AAOI's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Applied Optoelectronics Inc (AAOI) is between 9.19 to 22.08 according to relative valuation methord.
How does AAOI's valuation metrics compare to the industry average?
The average P/S ratio for AAOI's competitors is 3.67, providing a benchmark for relative valuation. Applied Optoelectronics Inc Corp (AAOI) exhibits a P/S ratio of 4.10, which is 11.59% above the industry average. Given its robust revenue growth of 82.08%, this premium appears sustainable.
What is the current P/B ratio for Applied Optoelectronics Inc (AAOI) as of Jan 08 2026?
As of Jan 08 2026, Applied Optoelectronics Inc (AAOI) has a P/B ratio of 4.82. This indicates that the market values AAOI at 4.82 times its book value.
What is the current FCF Yield for Applied Optoelectronics Inc (AAOI) as of Jan 08 2026?
As of Jan 08 2026, Applied Optoelectronics Inc (AAOI) has a FCF Yield of -11.98%. This means that for every dollar of Applied Optoelectronics Inc’s market capitalization, the company generates -11.98 cents in free cash flow.
What is the current Forward P/E ratio for Applied Optoelectronics Inc (AAOI) as of Jan 08 2026?
As of Jan 08 2026, Applied Optoelectronics Inc (AAOI) has a Forward P/E ratio of 164.66. This means the market is willing to pay $164.66 for every dollar of Applied Optoelectronics Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Applied Optoelectronics Inc (AAOI) as of Jan 08 2026?
As of Jan 08 2026, Applied Optoelectronics Inc (AAOI) has a Forward P/S ratio of 4.10. This means the market is valuing AAOI at $4.10 for every dollar of expected revenue over the next 12 months.