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Assessing Coherent (COHR) Valuation After Strong Multi‑Year Shareholder Returns

Simply Wall St · 3d ago

Coherent (COHR) has drawn investor attention after recent share price moves, with the stock closing at $194.11. That performance sits alongside double digit annual revenue and net income growth based on the latest reported figures.

See our latest analysis for Coherent.

The recent 4.2% 1 day share price return and 66.4% 90 day share price return sit alongside a 99.2% 1 year total shareholder return and a very large 3 year total shareholder return, suggesting momentum has been building over time.

If Coherent’s move has caught your eye, it could be a good moment to see what else is setting the pace in tech and AI, starting with high growth tech and AI stocks.

With Coherent now at $194.11 and trading above the average analyst price target of $178.47, the key question for you is whether the current valuation still leaves room for upside or if the market is already pricing in future growth.

Most Popular Narrative Narrative: 9% Overvalued

With Coherent closing at $194.11 against a narrative fair value of about $178.47, the current price sits above that widely followed estimate.

The fair value estimate has risen slightly from approximately $174.53 to $178.47 per share, reflecting modestly higher long-term expectations. The future P/E multiple has risen modestly from about 32.8x to 33.5x, signaling a slightly higher valuation being applied to anticipated earnings.

Read the complete narrative.

Curious what earnings path could support that higher multiple, plus the revenue and margin profile behind it? The narrative leans on detailed growth math you may want to see for yourself.

Result: Fair Value of $178.47 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there are still pressure points to watch, including rising competition from low cost Asian optical players and potential swings in hyperscaler and Apple driven demand.

Find out about the key risks to this Coherent narrative.

Build Your Own Coherent Narrative

If you look at the numbers and come to a different conclusion, or prefer to test your own view against the data, you can build a custom narrative in under three minutes, starting with Do it your way.

A great starting point for your Coherent research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Coherent has piqued your interest, do not stop at one idea. Broaden your watchlist and let data rich stock screens help you spot fresh opportunities early.

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.