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Assessing SEALSQ (LAES) Valuation After Cantor Fitzgerald’s New Quantum Security Coverage

Simply Wall St · 01/06 03:25

What Cantor Fitzgerald’s coverage means for SEALSQ shares

Cantor Fitzgerald’s new coverage of SEALSQ (LAES) centers on the company’s post quantum security focus and its plan to build scalable, secure quantum systems using silicon and CMOS compatible manufacturing processes.

See our latest analysis for SEALSQ.

The recent initiation of coverage comes after a mixed price pattern, with a 1-day share price return of 2.59% and 7-day share price return of 10.69% contrasting with a 1-year total shareholder return loss of 39.16%. This suggests short term momentum against a weaker longer term record.

If Cantor Fitzgerald’s interest has you looking at quantum security, it could also be a good moment to scan other high growth tech and AI names using high growth tech and AI stocks.

With SEALSQ shares down on a 1 year view but trading below Cantor Fitzgerald’s price target, the central question is whether recent quantum security optimism leaves upside on the table or whether markets already reflect expectations for future growth.

Price-to-book of 6.8x: Is it justified?

SEALSQ trades on a P/B of 6.8x compared with both peers and the wider US semiconductor sector, which points to a richer valuation at the recent US$4.35 close.

P/B compares the company’s market value with its net assets, so a higher ratio typically means investors are paying more for each dollar of book value.

For SEALSQ, that 6.8x P/B sits above the peer average of 5.2x and the US semiconductor industry average of 3.9x, so the market is placing a higher price on its balance sheet than on many competitors. With the business currently loss making and reporting a Return on Equity of 25.77% in the red, that premium P/B suggests investors are pricing in strong expectations that are not yet reflected in current earnings.

Compared with the industry, SEALSQ’s P/B stands out as materially higher, which means the shares are priced more expensively than many semiconductor names with lower multiples.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-book of 6.8x (OVERVALUED)

However, you also have to weigh the company’s US$30.443 loss on just US$10.978 revenue and the relatively rich 6.8x P/B against that quantum security story.

Find out about the key risks to this SEALSQ narrative.

Build Your Own SEALSQ Narrative

If you see the numbers differently or would rather piece together the story yourself, you can build a custom view in just a few minutes with Do it your way.

A great starting point for your SEALSQ research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.