CIEN Valuation

Ciena Corp

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94.820

+1.23(1.314%)1D

Overview
Forecast
Valuation
Earnings

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 36.99 is considered Overvalued compared with the five-year average of 23.25. The fair price of Ciena Corp (CIEN) is between 45.91 to 79.77 according to relative valuation methord. Compared to the current price of 94.82 USD , Ciena Corp is Overvalued By 18.87%.

Relative Value

Fair Zone

45.91-79.77

Current Price：94.82

18.87%

Overvalued

36.99

Trailing

Forward

21.69

EV/EBITDA

Ciena Corp. (CIEN) has a current EV/EBITDA of 21.69. The 5-year average EV/EBITDA is 13.56. The thresholds are as follows: Strongly Undervalued below 5.68, Undervalued between 5.68 and 9.62, Fairly Valued between 17.50 and 9.62, Overvalued between 17.50 and 21.44, and Strongly Overvalued above 21.44. The current Forward EV/EBITDA of 21.69 falls within the Strongly Overvalued range.

25.99

EV/EBIT

Ciena Corp. (CIEN) has a current EV/EBIT of 25.99. The 5-year average EV/EBIT is 16.39. The thresholds are as follows: Strongly Undervalued below 5.68, Undervalued between 5.68 and 11.03, Fairly Valued between 21.75 and 11.03, Overvalued between 21.75 and 27.10, and Strongly Overvalued above 27.10. The current Forward EV/EBIT of 25.99 falls within the Overvalued range.

2.77

Ciena Corp. (CIEN) has a current PS of 2.77. The 5-year average PS is 2.02. The thresholds are as follows: Strongly Undervalued below 1.17, Undervalued between 1.17 and 1.60, Fairly Valued between 2.45 and 1.60, Overvalued between 2.45 and 2.88, and Strongly Overvalued above 2.88. The current Forward PS of 2.77 falls within the Overvalued range.

23.71

P/OCF

Ciena Corp. (CIEN) has a current P/OCF of 23.71. The 5-year average P/OCF is 14.44. The thresholds are as follows: Strongly Undervalued below -3.81, Undervalued between -3.81 and 5.32, Fairly Valued between 23.57 and 5.32, Overvalued between 23.57 and 32.70, and Strongly Overvalued above 32.70. The current Forward P/OCF of 23.71 falls within the Overvalued range.

39.60

P/FCF

Ciena Corp. (CIEN) has a current P/FCF of 39.60. The 5-year average P/FCF is 25.68. The thresholds are as follows: Strongly Undervalued below -4.69, Undervalued between -4.69 and 10.50, Fairly Valued between 40.87 and 10.50, Overvalued between 40.87 and 56.05, and Strongly Overvalued above 56.05. The current Forward P/FCF of 39.60 falls within the Historic Trend Line -Fairly Valued range.

Ciena Corp (CIEN) has a current Price-to-Book (P/B) ratio of 4.78. Compared to its 3-year average P/B ratio of 2.89 , the current P/B ratio is approximately 65.46% higher. Relative to its 5-year average P/B ratio of 2.96, the current P/B ratio is about 61.54% higher. Ciena Corp (CIEN) has a Forward Free Cash Flow (FCF) yield of approximately 2.21%. Compared to its 3-year average FCF yield of 0.84%, the current FCF yield is approximately 161.39% lower. Relative to its 5-year average FCF yield of 2.42% , the current FCF yield is about -8.81% lower.

4.78

P/B

Median3y

2.89

Median5y

2.96

2.21

FCF Yield

Median3y

0.84

Median5y

2.42

Competitors Valuation Multiple

The average P/S ratio for CIEN's competitors is 2.10, providing a benchmark for relative valuation. Ciena Corp Corp (CIEN) exhibits a P/S ratio of 2.77, which is 31.77% above the industry average. Given its robust revenue growth of 23.61%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

CommScope Holding Company Inc

Arlo Technologies Inc

3.44

1.54%

1.92B

Performance Decomposition

Market capitalization of CIEN increased by 51.96% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 47.20 to 128.19.

The secondary factor is the Revenue Growth, contributed 23.61%to the performance.

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

23.61%

910.83M → 1.13B

Revenue Growth

-143.24%

-1.85 → 0.80

Margin Expansion

171.59%

47.20 → 128.19

P/E Change

51.96%