POWI Relative Valuation
POWI'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, POWI is overvalued; if below, it's undervalued.
Historical Valuation
Power Integrations Inc (POWI) is now in the Undervalued zone, suggesting that its current forward PE ratio of 32.79 is considered Undervalued compared with the five-year average of 39.17. The fair price of Power Integrations Inc (POWI) is between 45.05 to 73.69 according to relative valuation methord. Compared to the current price of 39.68 USD , Power Integrations Inc is Undervalued By 11.93%.
Relative Value
Fair Zone
45.05-73.69
Current Price：39.68
11.93%
Undervalued
32.79
PE
1Y
3Y
5Y
18.84
EV/EBITDA
Power Integrations Inc. (POWI) has a current EV/EBITDA of 18.84. The 5-year average EV/EBITDA is 26.26. The thresholds are as follows: Strongly Undervalued below 10.65, Undervalued between 10.65 and 18.45, Fairly Valued between 34.07 and 18.45, Overvalued between 34.07 and 41.88, and Strongly Overvalued above 41.88. The current Forward EV/EBITDA of 18.84 falls within the Historic Trend Line -Fairly Valued range.
32.16
EV/EBIT
Power Integrations Inc. (POWI) has a current EV/EBIT of 32.16. The 5-year average EV/EBIT is 37.32. The thresholds are as follows: Strongly Undervalued below 1.88, Undervalued between 1.88 and 19.60, Fairly Valued between 55.04 and 19.60, Overvalued between 55.04 and 72.76, and Strongly Overvalued above 72.76. The current Forward EV/EBIT of 32.16 falls within the Historic Trend Line -Fairly Valued range.
4.55
PS
Power Integrations Inc. (POWI) has a current PS of 4.55. The 5-year average PS is 7.73. The thresholds are as follows: Strongly Undervalued below 4.52, Undervalued between 4.52 and 6.13, Fairly Valued between 9.33 and 6.13, Overvalued between 9.33 and 10.93, and Strongly Overvalued above 10.93. The current Forward PS of 4.55 falls within the Undervalued range.
21.52
P/OCF
Power Integrations Inc. (POWI) has a current P/OCF of 21.52. The 5-year average P/OCF is 28.28. The thresholds are as follows: Strongly Undervalued below 12.33, Undervalued between 12.33 and 20.30, Fairly Valued between 36.25 and 20.30, Overvalued between 36.25 and 44.23, and Strongly Overvalued above 44.23. The current Forward P/OCF of 21.52 falls within the Historic Trend Line -Fairly Valued range.
0.00
P/FCF
Power Integrations Inc. (POWI) has a current P/FCF of 0.00. The 5-year average P/FCF is 27.97. The thresholds are as follows: Strongly Undervalued below -16.94, Undervalued between -16.94 and 5.52, Fairly Valued between 50.43 and 5.52, Overvalued between 50.43 and 72.88, and Strongly Overvalued above 72.88. The current Forward P/FCF of 0.00 falls within the Undervalued range.
Power Integrations Inc (POWI) has a current Price-to-Book (P/B) ratio of 3.07. Compared to its 3-year average P/B ratio of 5.09 , the current P/B ratio is approximately -39.64% higher. Relative to its 5-year average P/B ratio of 5.47, the current P/B ratio is about -43.90% higher. Power Integrations Inc (POWI) has a Forward Free Cash Flow (FCF) yield of approximately 3.86%. Compared to its 3-year average FCF yield of 2.13%, the current FCF yield is approximately 81.10% lower. Relative to its 5-year average FCF yield of 2.52% , the current FCF yield is about 53.12% lower.
3.07
P/B
Median3y
5.09
Median5y
5.47
3.86
FCF Yield
Median3y
2.13
Median5y
2.52
Competitors Valuation Multiple
The average P/S ratio for POWI's competitors is 12.84, providing a benchmark for relative valuation. Power Integrations Inc Corp (POWI) exhibits a P/S ratio of 4.55, which is -64.58% above the industry average. Given its robust revenue growth of 2.66%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of POWI decreased by 36.33% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 68.92 to 117.34.
The secondary factor is the Revenue Growth, contributed 2.66%to the performance.
Overall, the performance of POWI in the past 1 year is driven by P/E Change. Which is more unsustainable.
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Frequently Asked Questions
Is Power Integrations Inc (POWI) currently overvalued or undervalued?
Power Integrations Inc (POWI) is now in the Undervalued zone, suggesting that its current forward PE ratio of 32.79 is considered Undervalued compared with the five-year average of 39.17. The fair price of Power Integrations Inc (POWI) is between 45.05 to 73.69 according to relative valuation methord. Compared to the current price of 39.68 USD , Power Integrations Inc is Undervalued By 11.93% .
What is Power Integrations Inc (POWI) fair value?
POWI'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. The fair price of Power Integrations Inc (POWI) is between 45.05 to 73.69 according to relative valuation methord.
How does POWI's valuation metrics compare to the industry average?
The average P/S ratio for POWI's competitors is 12.84, providing a benchmark for relative valuation. Power Integrations Inc Corp (POWI) exhibits a P/S ratio of 4.55, which is -64.58% above the industry average. Given its robust revenue growth of 2.66%, this premium appears unsustainable.
What is the current P/B ratio for Power Integrations Inc (POWI) as of Jan 07 2026?
As of Jan 07 2026, Power Integrations Inc (POWI) has a P/B ratio of 3.07. This indicates that the market values POWI at 3.07 times its book value.
What is the current FCF Yield for Power Integrations Inc (POWI) as of Jan 07 2026?
As of Jan 07 2026, Power Integrations Inc (POWI) has a FCF Yield of 3.86%. This means that for every dollar of Power Integrations Inc’s market capitalization, the company generates 3.86 cents in free cash flow.
What is the current Forward P/E ratio for Power Integrations Inc (POWI) as of Jan 07 2026?
As of Jan 07 2026, Power Integrations Inc (POWI) has a Forward P/E ratio of 32.79. This means the market is willing to pay $32.79 for every dollar of Power Integrations Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Power Integrations Inc (POWI) as of Jan 07 2026?
As of Jan 07 2026, Power Integrations Inc (POWI) has a Forward P/S ratio of 4.55. This means the market is valuing POWI at $4.55 for every dollar of expected revenue over the next 12 months.