Using the industry peer median P/E multiple (trailing + forward), Super Micro Computer, Inc. (SMCI) has a fair value of $36.53 based on 5 comparable companies in the Computer Hardware industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Super Micro Computer, Inc.SMCI | 13,852 | 13.1x | 10.5x |
| Keysight Technologies, Inc.KEYS | 48,479 | 57.9x | 39.9x |
| Teradyne, Inc.TER | 47,289 | 86.8x | 95.0x |
| NetApp, Inc.NTAP | 20,860 | 18.6x | 16.3x |
| Broadridge Financial Solutions, Inc.BR | 18,914 | 22.8x | 17.0x |
| HP Inc.HPQ | 17,841 | 7.3x | 6.2x |
| Industry Median | 22.8x | 17.0x | |
| (*) Profit after tax | 1,049 | 1,319 | |
| Equity Value | 23,933 | 21,981 | |
| (/) Outstanding shares | 628 | 628 | |
| Fair Price | $38 | $35 | |
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.