IPG Photonics Corporation (IPGP) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of IPG Photonics Corporation stock $36.32, price $65.31, that is 44.4% below the price, quality 61 out of 100. Rating: strongly overvalued. Calculated from audited financials with 14 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range $49.68 – $181.55 · fair‑value band $25.42 – $47.22 · the $65.31 price screens above the $36.32 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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IPG Photonics Corporation develops, manufactures, and sells fiber lasers, fiber amplifiers, diode lasers, and laser-based systems used in materials processing, medical, and advanced applications.
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The company offers laser products, including hybrid fiber-solid state lasers with green and ultraviolet wavelengths; fiber pigtailed packaged diodes and fiber coupled direct diode laser systems; and high-energy pulsed lasers, multi-wavelength and tunable lasers, and single-polarization and single-frequency lasers, as well as other versions.
It also provides complementary products, such as optical fiber delivery cables, fiber couplers, beam switches, optical processing heads, process measuring and monitoring technologies, and in-line sensors and chillers.
In addition, the company offers LightWELD, a handheld laser welding system; 2D compact flat sheet cutter systems; high precision laser systems for medical technology industry; multi axis Cartesian systems for fine welding, cutting, and drilling applications; laser and non-laser robotic welding and automation solutions; and related accessories for specific medical applications.
The company sells and markets its products to original equipment manufacturers, system integrators, and end users through direct sales force, as well as through agreements with independent sales representatives and distributors.
It serves general manufacturing, automotive, consumer goods, medical devices, energy/renewable energy, micro electronics, original equipment manufacturers instrument manufacturing, scientific, as well as aerospace and defense, rail, and shipbuilding markets.
IPG Photonics Corporation was founded in 1990 and is headquartered in Marlborough, Massachusetts.
Stock analysis
IPG Photonics Corporation (IPGP) currently trades at $65.31, while our model-based Fair Value estimate is $36.32, 44% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Asset-Based group reads highest at a median of $26.52 per share, and 1 of the 14 models we run sit above the $65.31 price.
Bear case: the Earnings-Based group reads lowest at $8.11, and 13 of the 14 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $25.42 (bear) to $47.22 (bull), the price of $65.31 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 61/100 (solid quality), in the Technology sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
IPG Photonics Corporation reported revenue of $1.0B in FY2025 versus $1.5B in FY2021, a compound −9.0%/yr. Reported net income was $31.1M in FY2025, compounding −42.2%/yr from FY2021.
Key figures
Market cap $2.8B Mid · P/E ratio 69.5 · P/S ratio 2.53 · EPS (TTM) $0.9400 · Net margin 3.7% · Return on equity 1.9% · Return on assets (EBIT) 3.6% (5-year average) · Operating margin 8.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 34 out of 100 (low confidence).
What moves the price
The share trades about 58% below its 52-week high and 5% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at −7% fair-value upside, at −44%, IPGP screens richer than that median.
Fair Value models
Bear$25.42Fair Value $36.32Bull$47.22
Price $65.31 · Downside -44.4%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($0.8061 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
EPV$10.49$10.70$10.8874
ROIC Compounder$10.49$10.70$10.8872
Residual Income$30.48$31.40$33.8371
All 14 models by family
Earnings-Based
Graham-Dodd$4.97$16.88$22.6464
Lynch FV$3.87$5.52$7.1861
PEG = 1.0$3.87$5.52$7.1857
EPV$10.49$10.70$10.8874
Multiples
P/E Multiple$15.36$20.48$25.6063
P/S Multiple$9.33$12.44$15.5558
P/B Multiple$113.77$151.69$189.6255
EV/EBIT$15.05$16.90$18.7566
EV/EBITDA$34.89$43.36$51.8267
EV/Revenue$12.30$13.51$14.7154
Asset-Based
NCAV (Graham)$17.50$26.52$33.1554
Economic Profit
Residual Income$30.48$31.40$33.8371
ROIC Compounder$10.49$10.70$10.8872
Growth Earnings
Growth-Adj P/E$12.71$18.16$23.6167
The fair value above starts from this blend and is adjusted for a cyclical trough year.
SaleJeanmarie F. DesmondDirector1,690 shares at $105.58$178,430May 14, 2026
SaleMary E. ButtarazziVP, Corp Controller and CAO500 shares at $116.22$58,110Mar 17, 2026
SaleEric MeuriceDirector750 shares at $95.00$71,250Feb 2, 202610b5-1 plan
Plus 1 more entries from the last 12 months.
Plus 10 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.20/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
+2.7%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−11.1%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−3.5%
Start year 2020 (pandemic). Over 10 years: +1.1% a year
Revenue growth 24 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+16.4%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
−28.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year−28.8%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−26.3% vs −16.7%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.17% → 1%
News mood ⓘNews mood, the average tone of recent news (97 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: Established industrial laser operations form the main strength, while limited signals of durable advantage together with weak returns and negative FCF mark the key weakness.
Main risk: The defense initiative risks greater exposure to longer sales cycles and new competition, which would hit growth stability and margins in the emerging segment.
IPG Photonics is expanding its defense segment through IPG Defense with systems like the CROSSBOW high-energy lasers shown at Land Forces 2026 for counter-UAS protection. This adds a potential growth path next to its established industrial laser operations in materials processing. Our models currently see the stock as overvalued. Will the defense initiative deliver meaningful diversification or mainly increase exposure to longer sales cycles and new competition?
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Semiconductor Equipment & Materials · 235 stocks
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is IPG Photonics Corporation (IPGP) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of $36.32 versus a price of $65.31, about 44% lower (overvalued).
What is the fair value of IPGP?
Our model-based fair value for IPG Photonics Corporation is $36.32 (as of Nov 6, 2026), built from audited fundamentals. The current price: $65.31.
What is the quality score of IPGP?
IPG Photonics Corporation has a Quality Score of 61/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for IPG Photonics Corporation (IPGP)?
Our model-based price target is the fair value of $36.32 (as of Nov 6, 2026) from 14 valuation models. Cautious scenario $25.42, optimistic scenario $47.22. It is a calculation from audited fundamentals, not an analyst target.
What is the IPG Photonics Corporation stock forecast for 2026?
Our models put fair value at $36.32, about 44% lower versus a price of $65.31 (overvalued). Cautious scenario $25.42, optimistic scenario $47.22. The calculation is refreshed regularly with new filings.
What is the revenue of IPG Photonics Corporation (IPGP)?
IPG Photonics Corporation reported trailing-twelve-month revenue of about $1.1B (latest available figure, as of Nov 6, 2026).
What is the intrinsic value of IPG Photonics Corporation (IPGP)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For IPG Photonics Corporation it is $36.32 per share (as of Nov 6, 2026), against a price of $65.31. It is the blended result of 14 valuation models in 5 families (Earnings-Based, Multiples, Asset-Based, Economic Profit, Growth Earnings).
Is IPG Photonics Corporation stock overvalued or undervalued in 2026?
As of Nov 6, 2026, IPGP trades above its calculated fair value: price $65.31, fair value $36.32, a gap of about −44% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of IPGP?
No. The price is what the market pays today ($65.31); the fair value is what the company's own numbers justify ($36.32). For IPG Photonics Corporation the two are $28.99 per share apart. That gap is exactly why we show both numbers side by side.
How much is IPG Photonics Corporation worth?
The market values IPG Photonics Corporation at about $2.8B (market capitalisation, as of Nov 6, 2026). Per share that is $65.31; our models calculate a fair value of $36.32 per share.
What do the bullish and bearish scenarios say about IPGP?
Our models span a range for IPG Photonics Corporation: cautious scenario $25.42, base $36.32, optimistic $47.22 per share (as of Nov 6, 2026, price $65.31). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of IPGP?
IPG Photonics Corporation trades at a price-to-earnings ratio of 69.5 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $36.32 is built from several models across several years. Median P/E at fiscal year-end, 9 fiscal years (2016 to 2025), reported earnings, 4 of the years ex one-offs: 33.7. Other multiples: PEG 1.8, P/B 1.3, P/S 2.5, EV/EBITDA 19.4.
What is the PEG ratio of IPGP?
The PEG ratio of IPG Photonics Corporation is 1.83 (P/E divided by earnings growth, as of Nov 6, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of IPG Photonics Corporation (IPGP)?
Balance-sheet figures for IPG Photonics Corporation (as of Nov 6, 2026): return on equity 1.9%, debt of 0.01 per unit of equity. They feed the Quality Score of 61/100, which measures business quality independently of the share price.
How far is IPGP from its 52-week high?
IPG Photonics Corporation trades at $65.31, about 58% below its 52-week high of $153.91 and 5% above the low of $62.03 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $36.32 is for.
Which stocks are comparable to IPG Photonics Corporation?
From the same area (Technology) we also value ASML Holding, Applied Materials, Inc, Lam Research Corporation, KLA Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is IPG Photonics Corporation stock attractive at the current price?
The data as of Nov 6, 2026: price $65.31, calculated fair value $36.32 (−44%), Quality Score 61/100, from 14 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of IPGP calculated?
We run IPG Photonics Corporation through 14 models from 5 families: Earnings-Based, Multiples, Asset-Based, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $36.32 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. IPG Photonics Corporation itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of IPG Photonics Corporation (IPGP)?
The closing price on Nov 6, 2026 was $65.31. Our model-based fair value is $36.32, about 44% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with IPG Photonics Corporation right now?
The price sits above even our optimistic bull case ($47.22). The favourable scenario is already priced in. Solid but not exceptional quality (61/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($25.42 to $47.22) leaves room in how you read the outcome.
Where does the earnings growth of IPG Photonics Corporation (IPGP) come from?
Earnings per share at IPG Photonics Corporation grew −5.0 % a year from 2014 to 2025. Broken into its drivers: revenue per share +4.8 %, EBIT margin −12.9 %, tax rate +1.1 %, residual (interest, one-offs) +3.0 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of IPG Photonics Corporation
How large is the market capitalisation of IPG Photonics Corporation (IPGP)?
The market capitalisation of IPG Photonics Corporation is $2.8B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of IPG Photonics Corporation (IPGP)?
The price-to-sales ratio of IPG Photonics Corporation is 2.53 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of IPG Photonics Corporation (IPGP)?
Earnings per share at IPG Photonics Corporation are $0.9400 (price ÷ EPS = P/E 69.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of IPG Photonics Corporation (IPGP)?
The net margin of IPG Photonics Corporation is 3.7% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of IPG Photonics Corporation (IPGP)?
The return on equity (ROE) of IPG Photonics Corporation is 1.9% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of IPG Photonics Corporation (IPGP)?
On an EBIT basis the return on assets of IPG Photonics Corporation is 3.6% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of IPG Photonics Corporation (IPGP)?
The operating margin of IPG Photonics Corporation is 8.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at IPG Photonics Corporation (IPGP)?
Revenue at IPG Photonics Corporation is growing +14.6% versus a year earlier (3y avg −11.1%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at IPG Photonics Corporation (IPGP)?
Earnings per share at IPG Photonics Corporation are growing +166% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does IPG Photonics Corporation (IPGP) generate?
The free cash flow of IPG Photonics Corporation is −$3.5M (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net cash does IPG Photonics Corporation (IPGP) hold?
IPG Photonics Corporation holds more cash than debt, $404M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Some data
Nov 6, 2026
