CIEN PE Ratio & Valuation,Is CIEN Overvalued

CIEN Relative Valuation

CIEN'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, CIEN is overvalued; if below, it's undervalued.

Historical Valuation

Ciena Corp (CIEN) is now in the Overvalued zone, suggesting that its current forward PE ratio of 41.02 is considered Overvalued compared with the five-year average of 24.40. The fair price of Ciena Corp (CIEN) is between 106.05 to 181.10 according to relative valuation methord. Compared to the current price of 218.44 USD , Ciena Corp is Overvalued By 20.62%.

Relative Value

Fair Zone

106.05-181.10

Current Price：218.44

20.62%

Overvalued

41.02

27.40

EV/EBITDA

Ciena Corp. (CIEN) has a current EV/EBITDA of 27.40. The 5-year average EV/EBITDA is 14.39. The thresholds are as follows: Strongly Undervalued below 5.00, Undervalued between 5.00 and 9.69, Fairly Valued between 19.08 and 9.69, Overvalued between 19.08 and 23.77, and Strongly Overvalued above 23.77. The current Forward EV/EBITDA of 27.40 falls within the Strongly Overvalued range.

30.10

EV/EBIT

Ciena Corp. (CIEN) has a current EV/EBIT of 30.10. The 5-year average EV/EBIT is 17.29. The thresholds are as follows: Strongly Undervalued below 5.46, Undervalued between 5.46 and 11.38, Fairly Valued between 23.21 and 11.38, Overvalued between 23.21 and 29.12, and Strongly Overvalued above 29.12. The current Forward EV/EBIT of 30.10 falls within the Strongly Overvalued range.

5.18

Ciena Corp. (CIEN) has a current PS of 5.18. The 5-year average PS is 2.16. The thresholds are as follows: Strongly Undervalued below 0.77, Undervalued between 0.77 and 1.47, Fairly Valued between 2.86 and 1.47, Overvalued between 2.86 and 3.55, and Strongly Overvalued above 3.55. The current Forward PS of 5.18 falls within the Strongly Overvalued range.

68.71

P/OCF

Ciena Corp. (CIEN) has a current P/OCF of 68.71. The 5-year average P/OCF is 16.45. The thresholds are as follows: Strongly Undervalued below -7.81, Undervalued between -7.81 and 4.32, Fairly Valued between 28.58 and 4.32, Overvalued between 28.58 and 40.71, and Strongly Overvalued above 40.71. The current Forward P/OCF of 68.71 falls within the Strongly Overvalued range.

64.34

P/FCF

Ciena Corp. (CIEN) has a current P/FCF of 64.34. The 5-year average P/FCF is 27.25. The thresholds are as follows: Strongly Undervalued below -4.68, Undervalued between -4.68 and 11.29, Fairly Valued between 43.22 and 11.29, Overvalued between 43.22 and 59.18, and Strongly Overvalued above 59.18. The current Forward P/FCF of 64.34 falls within the Strongly Overvalued range.

Ciena Corp (CIEN) has a current Price-to-Book (P/B) ratio of 11.29. Compared to its 3-year average P/B ratio of 3.50 , the current P/B ratio is approximately 222.75% higher. Relative to its 5-year average P/B ratio of 3.31, the current P/B ratio is about 241.37% higher. Ciena Corp (CIEN) has a Forward Free Cash Flow (FCF) yield of approximately 2.16%. Compared to its 3-year average FCF yield of 1.32%, the current FCF yield is approximately 63.47% lower. Relative to its 5-year average FCF yield of 2.22% , the current FCF yield is about -2.82% lower.

11.29

P/B

Median3y

3.50

Median5y

3.31

2.16

FCF Yield

Median3y

1.32

Median5y

2.22

Competitors Valuation Multiple

The average P/S ratio for CIEN's competitors is 4.06, providing a benchmark for relative valuation. Ciena Corp Corp (CIEN) exhibits a P/S ratio of 5.18, which is 27.42% above the industry average. Given its robust revenue growth of 20.27%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of CIEN increased by 157.56% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 87.57 to 257.02.

The secondary factor is the Revenue Growth, contributed 20.27%to the performance.

Overall, the performance of CIEN in the past 1 year is driven by P/E Change. Which is more unsustainable.

20.27%

1.12B → 1.35B

Revenue Growth

-56.23%

3.29 → 1.44

Margin Expansion

193.52%

87.57 → 257.02

P/E Change

157.56%

84.81 → 218.44

Mkt Cap Growth

People Also Watch

Frequently Asked Questions

Is Ciena Corp (CIEN) currently overvalued or undervalued?

What is Ciena Corp (CIEN) fair value?

CIEN'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 Ciena Corp (CIEN) is between 106.05 to 181.10 according to relative valuation methord.

How does CIEN's valuation metrics compare to the industry average?

What is the current P/B ratio for Ciena Corp (CIEN) as of Dec 15 2025?

As of Dec 15 2025, Ciena Corp (CIEN) has a P/B ratio of 11.29. This indicates that the market values CIEN at 11.29 times its book value.

What is the current FCF Yield for Ciena Corp (CIEN) as of Dec 15 2025?

As of Dec 15 2025, Ciena Corp (CIEN) has a FCF Yield of 2.16%. This means that for every dollar of Ciena Corp’s market capitalization, the company generates 2.16 cents in free cash flow.

What is the current Forward P/E ratio for Ciena Corp (CIEN) as of Dec 15 2025?

As of Dec 15 2025, Ciena Corp (CIEN) has a Forward P/E ratio of 41.02. This means the market is willing to pay $41.02 for every dollar of Ciena Corp’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Ciena Corp (CIEN) as of Dec 15 2025?

As of Dec 15 2025, Ciena Corp (CIEN) has a Forward P/S ratio of 5.18. This means the market is valuing CIEN at $5.18 for every dollar of expected revenue over the next 12 months.

CIEN Valuation