IPGP Valuation

IPG Photonics Corp

Add to Watchlist

Advanced Chart

82.680

+1.66(2.049%)1D

Overview
Forecast
Valuation
Earnings

IPGP Relative Valuation

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

Historical Valuation

IPG Photonics Corp (IPGP) is now in the Overvalued zone, suggesting that its current forward PE ratio of 66.72 is considered Overvalued compared with the five-year average of 36.73. The fair price of IPG Photonics Corp (IPGP) is between 35.70 to 68.05 according to relative valuation methord. Compared to the current price of 81.02 USD , IPG Photonics Corp is Overvalued By 19.06%.

Relative Value

Fair Zone

35.70-68.05

Current Price：81.02

19.06%

Overvalued

66.72

Trailing

Forward

20.75

EV/EBITDA

IPG Photonics Corp. (IPGP) has a current EV/EBITDA of 20.75. The 5-year average EV/EBITDA is 15.70. The thresholds are as follows: Strongly Undervalued below 4.15, Undervalued between 4.15 and 9.92, Fairly Valued between 21.48 and 9.92, Overvalued between 21.48 and 27.26, and Strongly Overvalued above 27.26. The current Forward EV/EBITDA of 20.75 falls within the Historic Trend Line -Fairly Valued range.

133.47

EV/EBIT

IPG Photonics Corp. (IPGP) has a current EV/EBIT of 133.47. The 5-year average EV/EBIT is 38.08. The thresholds are as follows: Strongly Undervalued below -34.47, Undervalued between -34.47 and 1.81, Fairly Valued between 74.36 and 1.81, Overvalued between 74.36 and 110.64, and Strongly Overvalued above 110.64. The current Forward EV/EBIT of 133.47 falls within the Strongly Overvalued range.

3.48

IPG Photonics Corp. (IPGP) has a current PS of 3.48. The 5-year average PS is 4.56. The thresholds are as follows: Strongly Undervalued below 1.08, Undervalued between 1.08 and 2.82, Fairly Valued between 6.31 and 2.82, Overvalued between 6.31 and 8.05, and Strongly Overvalued above 8.05. The current Forward PS of 3.48 falls within the Historic Trend Line -Fairly Valued range.

27.10

P/OCF

IPG Photonics Corp. (IPGP) has a current P/OCF of 27.10. The 5-year average P/OCF is 18.26. The thresholds are as follows: Strongly Undervalued below 6.13, Undervalued between 6.13 and 12.20, Fairly Valued between 24.32 and 12.20, Overvalued between 24.32 and 30.39, and Strongly Overvalued above 30.39. The current Forward P/OCF of 27.10 falls within the Overvalued range.

91.70

P/FCF

IPG Photonics Corp. (IPGP) has a current P/FCF of 91.70. The 5-year average P/FCF is 37.67. The thresholds are as follows: Strongly Undervalued below -0.86, Undervalued between -0.86 and 18.40, Fairly Valued between 56.93 and 18.40, Overvalued between 56.93 and 76.20, and Strongly Overvalued above 76.20. The current Forward P/FCF of 91.70 falls within the Strongly Overvalued range.

IPG Photonics Corp (IPGP) has a current Price-to-Book (P/B) ratio of 1.63. Compared to its 3-year average P/B ratio of 1.78 , the current P/B ratio is approximately -8.56% higher. Relative to its 5-year average P/B ratio of 2.41, the current P/B ratio is about -32.46% higher. IPG Photonics Corp (IPGP) has a Forward Free Cash Flow (FCF) yield of approximately 1.87%. Compared to its 3-year average FCF yield of 3.79%, the current FCF yield is approximately -50.58% lower. Relative to its 5-year average FCF yield of 3.38% , the current FCF yield is about -44.61% lower.

1.63

P/B

Median3y

1.78

Median5y

2.41

1.87

FCF Yield

Median3y

3.79

Median5y

3.38

Competitors Valuation Multiple

The average P/S ratio for IPGP's competitors is 4.13, providing a benchmark for relative valuation. IPG Photonics Corp Corp (IPGP) exhibits a P/S ratio of 3.48, which is -15.69% above the industry average. Given its robust revenue growth of -2.69%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Silicon Motion Technology Corp

Power Integrations Inc

5.28

9.09%

2.50B

Performance Decomposition

Market capitalization of IPGP increased by 9.02% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -9.06 to -16.13.

The secondary factor is the Revenue Growth, contributed -2.69%to the performance.

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

-2.69%

257.65M → 250.72M

Revenue Growth

-66.37%

7.82 → 2.63

Margin Expansion

78.08%

-9.06 → -16.13

P/E Change

9.02%