IPG Photonics Corp (IPGP)

Market price: $75.53

7 valuation methods

How each method works

P / E: $16.67 to $46.00 (midpoint $27.40)

Values the stock at a peer multiple of its earnings per share — the most familiar gauge for steadily profitable companies.

How it’s calculated
We take the company's net earnings per share over the last twelve months and multiply them by the range of price-to-earnings (P/E) multiples its peers trade at.
Why it fits this industry
For steadily profitable companies, earnings are the bottom line an owner is entitled to — P/E is the most familiar way to ask what the market pays for a dollar of profit.
Reading this bar
The bar is the per-share value range this method implies: a conservative low, a central estimate, and an optimistic high. If the current price sits below the bar, the market is pricing the shares below what this method's inputs suggest; if it sits above, the market is pricing them higher. No single bar is a verdict — methods disagree for good reasons, so read the whole field together. One unusually strong or weak year can swing a P/E — the inputs panel shows the earnings the bar is built on.

P / E = (25.73/42.29/71.00)× eps 0.65 ≈ 16.67/27.40/46.00 (per_share)

P / E — mid-cycle: $30.60 to $89.60 (midpoint $54.86)

Values the stock on earnings averaged across a full five-year cycle — the semiconductor sector's standard, because a single year's earnings can be a peak or a trough.

How it’s calculated
We average net income over the company's last five fiscal years, divide by the current share count, and apply the range of price-to-mid-cycle-earnings multiples comparable companies trade at.
Why it fits this industry
In a cyclical industry a single year's earnings can be several times the cycle's average in either direction, so a plain P/E built on one year says as much about timing as about the business. Averaging over a full cycle is the sector's standard basis of comparison.
Reading this bar
The bar is the per-share value range this method implies: a conservative low, a central estimate, and an optimistic high. If the current price sits below the bar, the market is pricing the shares below what this method's inputs suggest; if it sits above, the market is pricing them higher. No single bar is a verdict — methods disagree for good reasons, so read the whole field together. A company earning far above its own five-year average will show a much higher bar here than on the last-twelve-months P/E, and the difference is the cyclical component of its current earnings.

P / E — mid-cycle = (21.53/38.60/63.04)× midcycle_eps 1.42 ≈ 30.60/54.86/89.60 (per_share)

EV / EBITDA: $44.60 to $105.87 (midpoint $56.99)

Values the whole business at a peer multiple of its cash operating earnings (EBITDA) — the workhorse comparison for capital-intensive, profitable companies.

How it’s calculated
We take the company's cash operating earnings over the last twelve months (EBITDA — earnings before interest, taxes, depreciation and amortization) and multiply them by the range of EV/EBITDA multiples comparable companies currently trade at. That gives a value for the whole business (enterprise value); we then subtract net debt and anything owed ahead of common shareholders — minority interests in subsidiaries and preferred stock — and divide by shares outstanding to get a per-share range.
Why it fits this industry
EBITDA strips out financing and accounting choices, so two companies with different debt loads or depreciation schedules can be compared on the cash their operations actually generate.
Reading this bar
The bar is the per-share value range this method implies: a conservative low, a central estimate, and an optimistic high. If the current price sits below the bar, the market is pricing the shares below what this method's inputs suggest; if it sits above, the market is pricing them higher. No single bar is a verdict — methods disagree for good reasons, so read the whole field together. A company can also deserve a multiple above or below its peers — faster growth, stronger margins, or higher risk all justify honest gaps.

EV / EBITDA = (13.66/20.68/48.38)× ebitda 75,070,000 ≈ 1,025,605,414.56/1,552,614,385.77/3,631,767,076.69 (enterprise_value); enterprise_value -> per share: equity (1,896,924,414.56/2,423,933,385.77/4,503,086,076.69) / 42,534,539 shares [EV bridge: minus net debt -871,319,000]

EV / EBITDA — mid-cycle: $63.85 to $149.26 (midpoint $100.30)

Values the business on EBITDA averaged across a full five-year chip cycle rather than the latest year — in semiconductors a peak or trough year distorts the multiple.

How it’s calculated
We average the company's EBITDA over its last five fiscal years — covering a full industry cycle rather than one year — and multiply that by the range of EV/EBITDA multiples comparable companies trade at on the same five-year basis. Net debt is then subtracted and the result divided by shares.
Why it fits this industry
Semiconductor and hardware earnings swing with a capacity cycle that runs several years. At the top of a cycle earnings are unusually high, which makes the multiple look low, and at the bottom the reverse; averaging across the cycle compares the business to itself over time rather than to one moment.
Reading this bar
The bar is the per-share value range this method implies: a conservative low, a central estimate, and an optimistic high. If the current price sits below the bar, the market is pricing the shares below what this method's inputs suggest; if it sits above, the market is pricing them higher. No single bar is a verdict — methods disagree for good reasons, so read the whole field together. Both this bar and the peer multiples behind it use five-year averages, so a gap against the last-twelve-months bar shows where the company currently sits in its cycle.

EV / EBITDA — mid-cycle = (13.00/23.93/38.61)× midcycle_ebitda 141,870,826.70 ≈ 1,844,626,060.05/3,395,090,555.37/5,477,183,376.41 (enterprise_value); enterprise_value -> per share: equity (2,715,945,060.05/4,266,409,555.37/6,348,502,376.41) / 42,534,539 shares [EV bridge: minus net debt -871,319,000]

EV / Revenue: $75.00 to $193.38 (midpoint $102.58)

Values the whole business at a peer multiple of sales — used when earnings are thin, volatile, or not yet meaningful, so revenue is the most reliable yardstick.

How it’s calculated
We multiply the company's last-twelve-month revenue by the range of EV/Revenue multiples its peer group trades at, subtract net debt and any minority interests or preferred stock ranking ahead of common shareholders, and divide by shares outstanding for a per-share range.
Why it fits this industry
When profits are thin, volatile, or still to come, revenue is the most dependable figure a company reports — this method values the business on the scale of what it actually sells.
Reading this bar
The bar is the per-share value range this method implies: a conservative low, a central estimate, and an optimistic high. If the current price sits below the bar, the market is pricing the shares below what this method's inputs suggest; if it sits above, the market is pricing them higher. No single bar is a verdict — methods disagree for good reasons, so read the whole field together. A pound of revenue is worth more at a high margin than a low one, so the peer group here is narrowed to companies earning a similar margin wherever enough of them exist. Where too few do, the bar falls back to the wider group and is the bluntest of the multiples — weigh it alongside the earnings-based bars.

EV / Revenue = (2.17/3.27/6.88)× revenue 1,069,340,000 ≈ 2,318,914,907.35/3,491,812,992.81/7,353,991,147.30 (enterprise_value); enterprise_value -> per share: equity (3,190,233,907.35/4,363,131,992.81/8,225,310,147.30) / 42,534,539 shares [EV bridge: minus net debt -871,319,000]

EV / Gross Profit: $93.60 to $186.24 (midpoint $120.21)

Values the business at a peer multiple of gross profit — useful where reported operating costs vary a lot across peers but gross economics are comparable.

How it’s calculated
We take last-twelve-month gross profit (revenue minus the direct cost of the goods or services sold), multiply it by the peer range of EV/Gross-Profit multiples, subtract net debt and any minority interests or preferred stock ranking ahead of common shareholders, and divide by shares outstanding.
Why it fits this industry
Gross profit sits between revenue and operating earnings: it credits the margin a company's products earn while ignoring overhead and investment choices that legitimately differ across peers.
Reading this bar
The bar is the per-share value range this method implies: a conservative low, a central estimate, and an optimistic high. If the current price sits below the bar, the market is pricing the shares below what this method's inputs suggest; if it sits above, the market is pricing them higher. No single bar is a verdict — methods disagree for good reasons, so read the whole field together.

EV / Gross Profit = (7.58/10.34/17.19)× gross_profit 410,101,000 ≈ 3,109,712,095.11/4,241,730,878.84/7,050,264,467.82 (enterprise_value); enterprise_value -> per share: equity (3,981,031,095.11/5,113,049,878.84/7,921,583,467.82) / 42,534,539 shares [EV bridge: minus net debt -871,319,000]

P / B: $124.04 to $323.39 (midpoint $205.49)

Values the stock at a peer multiple of its book (net asset) value — most meaningful for asset-heavy and financial companies whose balance sheet drives value.

How it’s calculated
We take book value per share (total assets minus total liabilities, from the latest balance sheet, divided by shares outstanding) and multiply it by the range of price-to-book multiples the peer group trades at.
Why it fits this industry
Where the balance sheet is the business — lenders, insurers, asset-heavy operators — the price the market pays for a dollar of net assets is a natural yardstick.
Reading this bar
The bar is the per-share value range this method implies: a conservative low, a central estimate, and an optimistic high. If the current price sits below the bar, the market is pricing the shares below what this method's inputs suggest; if it sits above, the market is pricing them higher. No single bar is a verdict — methods disagree for good reasons, so read the whole field together. Asset-light companies (brands, software) legitimately trade far above book value, so for them a P/B bar well below the price is usually structure, not signal.

P / B = (2.48/4.11/6.47)× book_value_per_share 50.01 ≈ 124.04/205.49/323.39 (per_share)

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