CRDO Valuation

Credo Technology Group Holding Ltd

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123.055

-8.765(-6.649%)1D

Overview
Forecast
Valuation
Earnings

CRDO Relative Valuation

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

Historical Valuation

Credo Technology Group Holding Ltd (CRDO) is now in the Overvalued zone, suggesting that its current forward PS ratio of 28.02 is considered Overvalued compared with the five-year average of 52.23. The fair price of Credo Technology Group Holding Ltd (CRDO) is between 45.08 to 77.68 according to relative valuation methord. Compared to the current price of 131.82 USD , Credo Technology Group Holding Ltd is Overvalued By 69.7%.

Relative Value

Fair Zone

45.08-77.68

Current Price：131.82

69.7%

Overvalued

79.68

Trailing

Forward

76.01

EV/EBITDA

Credo Technology Group Holding Ltd. (CRDO) has a current EV/EBITDA of 76.01. The 5-year average EV/EBITDA is 33.19. The thresholds are as follows: Strongly Undervalued below -199.22, Undervalued between -199.22 and -83.01, Fairly Valued between 149.40 and -83.01, Overvalued between 149.40 and 265.60, and Strongly Overvalued above 265.60. The current Forward EV/EBITDA of 76.01 falls within the Historic Trend Line -Fairly Valued range.

77.93

EV/EBIT

Credo Technology Group Holding Ltd. (CRDO) has a current EV/EBIT of 77.93. The 5-year average EV/EBIT is 235.66. The thresholds are as follows: Strongly Undervalued below -1200.04, Undervalued between -1200.04 and -482.19, Fairly Valued between 953.51 and -482.19, Overvalued between 953.51 and 1671.36, and Strongly Overvalued above 1671.36. The current Forward EV/EBIT of 77.93 falls within the Historic Trend Line -Fairly Valued range.

28.02

Credo Technology Group Holding Ltd. (CRDO) has a current PS of 28.02. The 5-year average PS is 12.89. The thresholds are as follows: Strongly Undervalued below 4.17, Undervalued between 4.17 and 8.53, Fairly Valued between 17.24 and 8.53, Overvalued between 17.24 and 21.60, and Strongly Overvalued above 21.60. The current Forward PS of 28.02 falls within the Strongly Overvalued range.

77.59

P/OCF

Credo Technology Group Holding Ltd. (CRDO) has a current P/OCF of 77.59. The 5-year average P/OCF is 236.81. The thresholds are as follows: Strongly Undervalued below -761.54, Undervalued between -761.54 and -262.36, Fairly Valued between 735.99 and -262.36, Overvalued between 735.99 and 1235.16, and Strongly Overvalued above 1235.16. The current Forward P/OCF of 77.59 falls within the Historic Trend Line -Fairly Valued range.

99.18

P/FCF

Credo Technology Group Holding Ltd. (CRDO) has a current P/FCF of 99.18. The 5-year average P/FCF is 119.88. The thresholds are as follows: Strongly Undervalued below -799.43, Undervalued between -799.43 and -339.77, Fairly Valued between 579.53 and -339.77, Overvalued between 579.53 and 1039.18, and Strongly Overvalued above 1039.18. The current Forward P/FCF of 99.18 falls within the Historic Trend Line -Fairly Valued range.

Credo Technology Group Holding Ltd (CRDO) has a current Price-to-Book (P/B) ratio of 33.10. Compared to its 3-year average P/B ratio of 9.94 , the current P/B ratio is approximately 233.09% higher. Relative to its 5-year average P/B ratio of 9.22, the current P/B ratio is about 259.11% higher. Credo Technology Group Holding Ltd (CRDO) has a Forward Free Cash Flow (FCF) yield of approximately 0.13%. Compared to its 3-year average FCF yield of -0.78%, the current FCF yield is approximately -116.27% lower. Relative to its 5-year average FCF yield of -1.11% , the current FCF yield is about -111.47% lower.

30.90

P/B

Median3y

9.94

Median5y

9.22

0.13

FCF Yield

Median3y

-0.78

Median5y

-1.11

Competitors Valuation Multiple

The average P/S ratio for CRDO's competitors is 11.99, providing a benchmark for relative valuation. Credo Technology Group Holding Ltd Corp (CRDO) exhibits a P/S ratio of 28.02, which is 133.70% above the industry average. Given its robust revenue growth of 179.73%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

CRDO.O

Credo Technology Group Holding Ltd

Guidewire Software Inc

SS&C Technologies Holdings Inc

Performance Decomposition

Market capitalization of CRDO increased by 252.49% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 106.72 to 424.33.

The secondary factor is the Revenue Growth, contributed 179.73%to the performance.

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

179.73%

60.78M → 170.03M

Revenue Growth

-224.83%

-17.24 → 21.52

Margin Expansion

297.59%

106.72 → 424.33

P/E Change

252.49%