POWI Valuation

Power Integrations Inc

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47.420

+2.37(5.261%)1D

Overview
Forecast
Valuation
Earnings

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 Fair zone, suggesting that its current forward PE ratio of 32.66 is considered Fairly compared with the five-year average of 39.26. The fair price of Power Integrations Inc (POWI) is between 35.45 to 68.82 according to relative valuation methord.

Relative Value

Fair Zone

35.45-68.82

Current Price：45.91

Fair

32.26

Trailing

Forward

19.62

EV/EBITDA

Power Integrations Inc. (POWI) has a current EV/EBITDA of 19.62. The 5-year average EV/EBITDA is 27.00. The thresholds are as follows: Strongly Undervalued below 11.75, Undervalued between 11.75 and 19.38, Fairly Valued between 34.62 and 19.38, Overvalued between 34.62 and 42.24, and Strongly Overvalued above 42.24. The current Forward EV/EBITDA of 19.62 falls within the Historic Trend Line -Fairly Valued range.

31.46

EV/EBIT

Power Integrations Inc. (POWI) has a current EV/EBIT of 31.46. The 5-year average EV/EBIT is 37.21. The thresholds are as follows: Strongly Undervalued below 1.71, Undervalued between 1.71 and 19.46, Fairly Valued between 54.96 and 19.46, Overvalued between 54.96 and 72.70, and Strongly Overvalued above 72.70. The current Forward EV/EBIT of 31.46 falls within the Historic Trend Line -Fairly Valued range.

5.33

Power Integrations Inc. (POWI) has a current PS of 5.33. The 5-year average PS is 7.90. The thresholds are as follows: Strongly Undervalued below 5.06, Undervalued between 5.06 and 6.48, Fairly Valued between 9.31 and 6.48, Overvalued between 9.31 and 10.73, and Strongly Overvalued above 10.73. The current Forward PS of 5.33 falls within the Undervalued range.

23.11

P/OCF

Power Integrations Inc. (POWI) has a current P/OCF of 23.11. The 5-year average P/OCF is 28.61. The thresholds are as follows: Strongly Undervalued below 12.83, Undervalued between 12.83 and 20.72, Fairly Valued between 36.50 and 20.72, Overvalued between 36.50 and 44.39, and Strongly Overvalued above 44.39. The current Forward P/OCF of 23.11 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 30.83. The thresholds are as follows: Strongly Undervalued below -11.64, Undervalued between -11.64 and 9.60, Fairly Valued between 52.06 and 9.60, Overvalued between 52.06 and 73.30, and Strongly Overvalued above 73.30. 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 3.64. Compared to its 3-year average P/B ratio of 5.37 , the current P/B ratio is approximately -32.18% higher. Relative to its 5-year average P/B ratio of 5.60, the current P/B ratio is about -35.03% higher. Power Integrations Inc (POWI) has a Forward Free Cash Flow (FCF) yield of approximately 3.17%. Compared to its 3-year average FCF yield of 2.26%, the current FCF yield is approximately 40.06% lower. Relative to its 5-year average FCF yield of 2.67% , the current FCF yield is about 18.55% lower.

3.59

P/B

Median3y

5.37

Median5y

5.60

3.23

FCF Yield

Median3y

2.26

Median5y

2.67

Competitors Valuation Multiple

The average P/S ratio for POWI's competitors is 3.76, providing a benchmark for relative valuation. Power Integrations Inc Corp (POWI) exhibits a P/S ratio of 5.33, which is 41.71% above the industry average. Given its robust revenue growth of 9.09%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

POWI.O

Power Integrations Inc

Silicon Motion Technology Corp

Performance Decomposition

Market capitalization of POWI decreased by 29.33% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 56.18 to 76.28.

The secondary factor is the Revenue Growth, contributed 9.09%to the performance.

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

9.09%

106.20M → 115.85M

Revenue Growth

-74.18%

4.57 → 1.18

Margin Expansion

35.76%

56.18 → 76.28

P/E Change

-29.33%