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 51.37 is considered Overvalued compared with the five-year average of 24.54. The fair price of Ciena Corp (CIEN) is between 76.83 to 132.80 according to relative valuation methord. Compared to the current price of 193.35 USD , Ciena Corp is Overvalued By 45.59%.
Relative Value
Fair Zone
76.83-132.80
Current Price：193.35
45.59%
Overvalued
52.00
PE
1Y
3Y
5Y
Trailing
Forward
32.89
EV/EBITDA
Ciena Corp. (CIEN) has a current EV/EBITDA of 32.89. The 5-year average EV/EBITDA is 14.43. The thresholds are as follows: Strongly Undervalued below 4.36, Undervalued between 4.36 and 9.40, Fairly Valued between 19.47 and 9.40, Overvalued between 19.47 and 24.50, and Strongly Overvalued above 24.50. The current Forward EV/EBITDA of 32.89 falls within the Strongly Overvalued range.
37.78
EV/EBIT
Ciena Corp. (CIEN) has a current EV/EBIT of 37.78. The 5-year average EV/EBIT is 17.38. The thresholds are as follows: Strongly Undervalued below 4.74, Undervalued between 4.74 and 11.06, Fairly Valued between 23.69 and 11.06, Overvalued between 23.69 and 30.01, and Strongly Overvalued above 30.01. The current Forward EV/EBIT of 37.78 falls within the Strongly Overvalued range.
5.15
PS
Ciena Corp. (CIEN) has a current PS of 5.15. The 5-year average PS is 2.15. The thresholds are as follows: Strongly Undervalued below 0.76, Undervalued between 0.76 and 1.46, Fairly Valued between 2.85 and 1.46, Overvalued between 2.85 and 3.55, and Strongly Overvalued above 3.55. The current Forward PS of 5.15 falls within the Strongly Overvalued range.
53.70
P/OCF
Ciena Corp. (CIEN) has a current P/OCF of 53.70. The 5-year average P/OCF is 16.05. The thresholds are as follows: Strongly Undervalued below -6.15, Undervalued between -6.15 and 4.95, Fairly Valued between 27.14 and 4.95, Overvalued between 27.14 and 38.24, and Strongly Overvalued above 38.24. The current Forward P/OCF of 53.70 falls within the Strongly Overvalued range.
51.31
P/FCF
Ciena Corp. (CIEN) has a current P/FCF of 51.31. The 5-year average P/FCF is 26.89. The thresholds are as follows: Strongly Undervalued below -4.21, Undervalued between -4.21 and 11.34, Fairly Valued between 42.44 and 11.34, Overvalued between 42.44 and 57.98, and Strongly Overvalued above 57.98. The current Forward P/FCF of 51.31 falls within the Overvalued range.
Ciena Corp (CIEN) has a current Price-to-Book (P/B) ratio of 9.80. Compared to its 3-year average P/B ratio of 3.42 , the current P/B ratio is approximately 186.63% higher. Relative to its 5-year average P/B ratio of 3.26, the current P/B ratio is about 200.46% higher. Ciena Corp (CIEN) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 1.25%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.24% , the current FCF yield is about -100.00% lower.
9.93
P/B
Median3y
3.42
Median5y
3.26
2.22
FCF Yield
Median3y
1.25
Median5y
2.24
Competitors Valuation Multiple
The average P/S ratio for CIEN's competitors is 1.43, providing a benchmark for relative valuation. Ciena Corp Corp (CIEN) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 29.40%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of CIEN increased by 130.79% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 1.51 to 4.13.
The secondary factor is the Revenue Growth, contributed 29.40%to the performance.
Overall, the performance of CIEN in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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