NVMI Valuation

Nova Ltd

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272.310

+2(0.740%)1D

Overview
Forecast
Valuation
Earnings

NVMI Relative Valuation

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

Historical Valuation

Nova Ltd (NVMI) is now in the Overvalued zone, suggesting that its current forward PE ratio of 31.35 is considered Overvalued compared with the five-year average of 25.35. The fair price of Nova Ltd (NVMI) is between 194.80 to 258.92 according to relative valuation methord. Compared to the current price of 270.31 USD , Nova Ltd is Overvalued By 4.4%.

Relative Value

Fair Zone

194.80-258.92

Current Price：270.31

4.4%

Overvalued

31.35

Trailing

Forward

24.10

EV/EBITDA

Nova Ltd. (NVMI) has a current EV/EBITDA of 24.10. The 5-year average EV/EBITDA is 18.38. The thresholds are as follows: Strongly Undervalued below 10.94, Undervalued between 10.94 and 14.66, Fairly Valued between 22.11 and 14.66, Overvalued between 22.11 and 25.83, and Strongly Overvalued above 25.83. The current Forward EV/EBITDA of 24.10 falls within the Overvalued range.

25.24

EV/EBIT

Nova Ltd. (NVMI) has a current EV/EBIT of 25.24. The 5-year average EV/EBIT is 19.60. The thresholds are as follows: Strongly Undervalued below 11.98, Undervalued between 11.98 and 15.79, Fairly Valued between 23.41 and 15.79, Overvalued between 23.41 and 27.23, and Strongly Overvalued above 27.23. The current Forward EV/EBIT of 25.24 falls within the Overvalued range.

8.95

Nova Ltd. (NVMI) has a current PS of 8.95. The 5-year average PS is 6.44. The thresholds are as follows: Strongly Undervalued below 3.62, Undervalued between 3.62 and 5.03, Fairly Valued between 7.86 and 5.03, Overvalued between 7.86 and 9.27, and Strongly Overvalued above 9.27. The current Forward PS of 8.95 falls within the Overvalued range.

32.59

P/OCF

Nova Ltd. (NVMI) has a current P/OCF of 32.59. The 5-year average P/OCF is 15.06. The thresholds are as follows: Strongly Undervalued below -15.39, Undervalued between -15.39 and -0.16, Fairly Valued between 30.28 and -0.16, Overvalued between 30.28 and 45.50, and Strongly Overvalued above 45.50. The current Forward P/OCF of 32.59 falls within the Overvalued range.

36.29

P/FCF

Nova Ltd. (NVMI) has a current P/FCF of 36.29. The 5-year average P/FCF is 8.09. The thresholds are as follows: Strongly Undervalued below -19.20, Undervalued between -19.20 and -5.55, Fairly Valued between 21.74 and -5.55, Overvalued between 21.74 and 35.38, and Strongly Overvalued above 35.38. The current Forward P/FCF of 36.29 falls within the Strongly Overvalued range.

Nova Ltd (NVMI) has a current Price-to-Book (P/B) ratio of 7.25. Compared to its 3-year average P/B ratio of 5.85 , the current P/B ratio is approximately 23.89% higher. Relative to its 5-year average P/B ratio of 6.01, the current P/B ratio is about 20.60% higher. Nova Ltd (NVMI) has a Forward Free Cash Flow (FCF) yield of approximately 2.59%. Compared to its 3-year average FCF yield of 3.23%, the current FCF yield is approximately -19.73% lower. Relative to its 5-year average FCF yield of 3.22% , the current FCF yield is about -19.49% lower.

7.25

P/B

Median3y

5.85

Median5y

6.01

2.59

FCF Yield

Median3y

3.23

Median5y

3.22

Competitors Valuation Multiple

The average P/S ratio for NVMI's competitors is 4.87, providing a benchmark for relative valuation. Nova Ltd Corp (NVMI) exhibits a P/S ratio of 8.95, which is 83.77% above the industry average. Given its robust revenue growth of 40.25%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

ESCO Technologies Inc

3.59

6.58%

4.99B

Performance Decomposition

Market capitalization of NVMI increased by 20.92% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 156.86M to 219.99M.

The secondary factor is the Margin Expansion, contributed 7.85%to the performance.

Overall, the performance of NVMI in the past 1 year is driven by Revenue Growth. Which is more sustainable.

40.25%

156.86M → 219.99M

Revenue Growth

7.85%

28.78 → 31.04

Margin Expansion

-27.18%

50.41 → 36.71

P/E Change

20.92%