Power Integrations, Inc. (POWI) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-68.2%

$14.26

vs $44.85 price

Levered DCF

$20.57

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

17.75

Safe zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	91.13×	108.25×	84.65×	24.23×	34.03×	68.79×	14.94×	25.62×
P/B	2.96×	4.68×	6.24×	5.49×	6.14×	6.03×	4×	3.41×
P/S	4.49×	8.37×	10.56×	6.37×	7.97×	10×	6.88×	4.32×
EV / EBITDA	39.46×	53.31×	55.83×	18.37×	25.89×	46.91×	37.49×	20.82×
Gross margin	54.5%	53.6%	51.5%	56.3%	51.3%	49.9%	50.7%	51.6%
Operating margin	4.8%	4.3%	7.9%	27.7%	24.9%	14.4%	51.6%	13.4%
Net margin	5.0%	7.7%	12.5%	26.2%	23.4%	14.6%	46.0%	16.8%
Current ratio	6.51×	9.29×	10.47×	8.99×	9.5×	9.62×	10.72×	6.87×
Debt / equity	0×	0.04×	0.02×	0.02×	0.02×	0×	0×	0×
Interest coverage	0×	0×	0×	0×	0×	0×	0×	0×
Dividend yield	2.4%	1.3%	0.9%	1.0%	0.6%	0.5%	0.7%	1.0%
Payout ratio	213.5%	142.8%	79.0%	24.3%	19.8%	35.2%	10.6%	26.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	3.3%	4.3%	7.4%	22.6%	18.0%	8.8%	26.7%	13.3%
Return on invested capital	3.1%	2.3%	4.5%	21.4%	17.3%	7.9%	25.1%	10.3%
Return on assets	2.9%	3.9%	6.8%	20.3%	16.2%	7.9%	24.1%	11.9%
Free cash flow yield	4.4%	1.8%	1.0%	4.2%	3.3%	1.1%	6.9%	3.3%
Earnings yield	1.1%	0.9%	1.2%	4.1%	2.9%	1.5%	6.7%	3.9%
Enterprise value	$1.9B	$3.5B	$4.6B	$4.1B	$5.5B	$4.6B	$2.7B	$1.7B
Net debt / EBITDA	-1.2×	-0.35×	-0.56×	-0.41×	-0.66×	-2.63×	-2.47×	-1.68×
Cash conversion cycle (days)	255	279	244	147	81	129	132	99