EXTR Valuation

Extreme Networks Inc

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19.960

+0.07(0.352%)1D

Overview
Forecast
Valuation
Earnings

EXTR Relative Valuation

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

Historical Valuation

Extreme Networks Inc (EXTR) is now in the Fair zone, suggesting that its current forward PE ratio of 19.67 is considered Fairly compared with the five-year average of 18.29. The fair price of Extreme Networks Inc (EXTR) is between 12.69 to 29.26 according to relative valuation methord.

Relative Value

Fair Zone

12.69-29.26

Current Price：19.96

Fair

19.67

Trailing

Forward

12.99

EV/EBITDA

Extreme Networks Inc. (EXTR) has a current EV/EBITDA of 12.99. The 5-year average EV/EBITDA is 12.22. The thresholds are as follows: Strongly Undervalued below 2.36, Undervalued between 2.36 and 7.29, Fairly Valued between 17.15 and 7.29, Overvalued between 17.15 and 22.08, and Strongly Overvalued above 22.08. The current Forward EV/EBITDA of 12.99 falls within the Historic Trend Line -Fairly Valued range.

14.05

EV/EBIT

Extreme Networks Inc. (EXTR) has a current EV/EBIT of 14.05. The 5-year average EV/EBIT is 13.65. The thresholds are as follows: Strongly Undervalued below 2.00, Undervalued between 2.00 and 7.82, Fairly Valued between 19.47 and 7.82, Overvalued between 19.47 and 25.29, and Strongly Overvalued above 25.29. The current Forward EV/EBIT of 14.05 falls within the Historic Trend Line -Fairly Valued range.

2.15

Extreme Networks Inc. (EXTR) has a current PS of 2.15. The 5-year average PS is 1.56. The thresholds are as follows: Strongly Undervalued below 0.48, Undervalued between 0.48 and 1.02, Fairly Valued between 2.09 and 1.02, Overvalued between 2.09 and 2.63, and Strongly Overvalued above 2.63. The current Forward PS of 2.15 falls within the Overvalued range.

0.00

P/OCF

Extreme Networks Inc. (EXTR) has a current P/OCF of 0.00. The 5-year average P/OCF is 8.59. The thresholds are as follows: Strongly Undervalued below -29.13, Undervalued between -29.13 and -10.27, Fairly Valued between 27.45 and -10.27, Overvalued between 27.45 and 46.31, and Strongly Overvalued above 46.31. The current Forward P/OCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

21.43

P/FCF

Extreme Networks Inc. (EXTR) has a current P/FCF of 21.43. The 5-year average P/FCF is 17.38. The thresholds are as follows: Strongly Undervalued below -3.36, Undervalued between -3.36 and 7.01, Fairly Valued between 27.76 and 7.01, Overvalued between 27.76 and 38.13, and Strongly Overvalued above 38.13. The current Forward P/FCF of 21.43 falls within the Historic Trend Line -Fairly Valued range.

Extreme Networks Inc (EXTR) has a current Price-to-Book (P/B) ratio of 40.05. Compared to its 3-year average P/B ratio of 34.40 , the current P/B ratio is approximately 16.43% higher. Relative to its 5-year average P/B ratio of 35.40, the current P/B ratio is about 13.15% higher. Extreme Networks Inc (EXTR) has a Forward Free Cash Flow (FCF) yield of approximately 4.82%. Compared to its 3-year average FCF yield of 5.53%, the current FCF yield is approximately -12.85% lower. Relative to its 5-year average FCF yield of 6.35% , the current FCF yield is about -24.17% lower.

40.05

P/B

Median3y

34.40

Median5y

35.40

4.82

FCF Yield

Median3y

5.53

Median5y

6.35

Competitors Valuation Multiple

The average P/S ratio for EXTR's competitors is 1.88, providing a benchmark for relative valuation. Extreme Networks Inc Corp (EXTR) exhibits a P/S ratio of 2.15, which is 13.91% above the industry average. Given its robust revenue growth of 19.62%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of EXTR increased by 26.73% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -169.93 to -331.50.

The secondary factor is the Revenue Growth, contributed 19.62%to the performance.

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

19.62%

256.65M → 307.00M

Revenue Growth

-87.97%

-21.12 → -2.54

Margin Expansion

95.08%

-169.93 → -331.50

P/E Change

26.73%