Using the industry peer median P/E multiple (trailing + forward), Ciena Corporation (CIEN) has a fair value of $37.35 based on 3 comparable companies in the Communication Equipment industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Ciena CorporationCIEN | 56,937 | 461.2x | 202.3x |
| Teradyne, Inc.TER | 47,289 | 86.8x | 95.0x |
| Teledyne Technologies IncorporatedTDY | 28,423 | 32.5x | 31.6x |
| Broadridge Financial Solutions, Inc.BR | 18,914 | 22.8x | 17.0x |
| Industry Median | 32.5x | 31.6x | |
| (*) Profit after tax | 123 | 281 | |
| Equity Value | 4,010 | 6,841 | |
| (/) Outstanding shares | 145 | 145 | |
| Fair Price | $28 | $47 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.