Applied Optoelectronics, Inc.Opportunity Rank #315(AAOI) Intrinsic Value & DCF Analysis (2026)
Current Price
$112.02
Last updated: Jul 24, 2026
Price vs Intrinsic Value
Fundamental Score
Weighted across 6 signals
Narrative Score
No change vs previous
Trend Score
As of 2026-07-24
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The intrinsic value of Applied Optoelectronics, Inc. (AAOI) is estimated at $1.49 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $112.02, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a -47.05% long-term growth rate and an 11.96% discount rate, reflecting expected future free cash flow and cost of capital.
The intrinsic value of Applied Optoelectronics, Inc. (AAOI) is estimated at $1.49 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $112.02, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a -47.05% long-term growth rate and an 11.96% discount rate, reflecting expected future free cash flow and cost of capital.Valuation Details
Capital Efficiency
The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.
Fundamental Details
Narrative Details
Trend Details
Investment Coach
- Price moving to at least a mid-teens discount to fair value
- Improvement in ROIC versus WACC spread
- Meaningful shifts in the narrative score direction
Free Cash Flow (in millions)
How Intrinziq Estimates Fair Value
Intrinziq estimates Applied Optoelectronics, Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.
Applied Optoelectronics, Inc.Technology
Applied Optoelectronics, Inc. (AAOI) is a global technology firm specializing in the creation, production, and distribution of fiber-optic networking solutions. Its extensive product catalog features optical modules, a range of laser components, subassemblies, transceivers, and complete turn-key systems. The company also supplies critical infrastructure hardware such as headend, node, and distribution equipment. AAOI caters to a varied clientele, including internet data center operators, manufacturers of cable television and telecommunications equipment, and internet service providers, utilizing both direct and partner-based sales channels. Founded in 1997, Applied Optoelectronics, Inc. is headquartered in Sugar Land, Texas.