MEI Valuation

Methode Electronics Inc

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7.640

+0.13(1.731%)1D

Overview
Forecast
Valuation
Earnings

MEI Relative Valuation

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

Historical Valuation

Methode Electronics Inc (MEI) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.28 is considered Undervalued compared with the five-year average of 10.71. The fair price of Methode Electronics Inc (MEI) is between 30.87 to 51.73 according to relative valuation methord. Compared to the current price of 7.64 USD , Methode Electronics Inc is Undervalued By 75.25%.

Relative Value

Fair Zone

30.87-51.73

Current Price：7.64

75.25%

Undervalued

45.52

Trailing

Forward

5.73

EV/EBITDA

Methode Electronics Inc. (MEI) has a current EV/EBITDA of 5.73. The 5-year average EV/EBITDA is 9.40. The thresholds are as follows: Strongly Undervalued below 0.55, Undervalued between 0.55 and 4.97, Fairly Valued between 13.82 and 4.97, Overvalued between 13.82 and 18.24, and Strongly Overvalued above 18.24. The current Forward EV/EBITDA of 5.73 falls within the Historic Trend Line -Fairly Valued range.

9.69

EV/EBIT

Methode Electronics Inc. (MEI) has a current EV/EBIT of 9.69. The 5-year average EV/EBIT is 32.31. The thresholds are as follows: Strongly Undervalued below -67.13, Undervalued between -67.13 and -17.41, Fairly Valued between 82.03 and -17.41, Overvalued between 82.03 and 131.74, and Strongly Overvalued above 131.74. The current Forward EV/EBIT of 9.69 falls within the Historic Trend Line -Fairly Valued range.

0.28

Methode Electronics Inc. (MEI) has a current PS of 0.28. The 5-year average PS is 0.98. The thresholds are as follows: Strongly Undervalued below 0.04, Undervalued between 0.04 and 0.51, Fairly Valued between 1.45 and 0.51, Overvalued between 1.45 and 1.93, and Strongly Overvalued above 1.93. The current Forward PS of 0.28 falls within the Undervalued range.

4.55

P/OCF

Methode Electronics Inc. (MEI) has a current P/OCF of 4.55. The 5-year average P/OCF is 10.64. The thresholds are as follows: Strongly Undervalued below -5.18, Undervalued between -5.18 and 2.73, Fairly Valued between 18.55 and 2.73, Overvalued between 18.55 and 26.46, and Strongly Overvalued above 26.46. The current Forward P/OCF of 4.55 falls within the Historic Trend Line -Fairly Valued range.

32.81

P/FCF

Methode Electronics Inc. (MEI) has a current P/FCF of 32.81. The 5-year average P/FCF is 95.03. The thresholds are as follows: Strongly Undervalued below -611.30, Undervalued between -611.30 and -258.13, Fairly Valued between 448.20 and -258.13, Overvalued between 448.20 and 801.37, and Strongly Overvalued above 801.37. The current Forward P/FCF of 32.81 falls within the Historic Trend Line -Fairly Valued range.

Methode Electronics Inc (MEI) has a current Price-to-Book (P/B) ratio of 0.39. Compared to its 3-year average P/B ratio of 0.96 , the current P/B ratio is approximately -59.47% higher. Relative to its 5-year average P/B ratio of 1.28, the current P/B ratio is about -69.63% higher. Methode Electronics Inc (MEI) has a Forward Free Cash Flow (FCF) yield of approximately -5.75%. Compared to its 3-year average FCF yield of 1.33%, the current FCF yield is approximately -531.66% lower. Relative to its 5-year average FCF yield of 3.69% , the current FCF yield is about -255.84% lower.

0.39

P/B

Median3y

0.96

Median5y

1.28

-5.75

FCF Yield

Median3y

1.33

Median5y

3.69

Competitors Valuation Multiple

The average P/S ratio for MEI's competitors is 3.10, providing a benchmark for relative valuation. Methode Electronics Inc Corp (MEI) exhibits a P/S ratio of 0.28, which is -91.07% above the industry average. Given its robust revenue growth of -7.28%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

MEI.N

Methode Electronics Inc

LightPath Technologies Inc

Senseonics Holdings Inc

Vishay Precision Group Inc

Espey MFG & Electronics Corp

2.90

24.81%

127.92M

Performance Decomposition

Market capitalization of MEI decreased by 22.98% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -3.24 to -4.24.

The secondary factor is the Revenue Growth, contributed -7.28%to the performance.

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

-7.28%

277.30M → 257.10M

Revenue Growth

-46.71%

-20.66 → -11.01

Margin Expansion

31.01%

-3.24 → -4.24

P/E Change

-22.98%