Market Pulse59Neutral

Coherent, Inc.Opportunity Rank #213(COHR) Intrinsic Value & DCF Analysis (2026)

Sector: Technology

Current Price

$319.19

Last updated: May 08, 2026

Price vs Intrinsic Value

$319.19
Price
$86,469.98
Intrinsic Value
Undervalued by 26990%MOS: $69,175.98

Fundamental Score

65/100
Bullish

Weighted across 6 signals

Narrative Score

70/100
Strong

-1 vs previous

Trend Score

93/100
Strong

As of 2026-05-08

The intrinsic value of Coherent, Inc. (COHR) is estimated at $86,469.98 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $319.19, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 9.17% long-term growth rate and an 8.50% discount rate (calculated: 1.47%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Coherent, Inc. (COHR) is estimated at $86,469.98 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $319.19, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 9.17% long-term growth rate and an 8.50% discount rate (calculated: 1.47%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$86,469.98
▲ 26990.44% upside
20% margin of safety: $69,175.98
Years: 10Growth Rate: 9.17%
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Capital Efficiency

Average Quarterly ROIC
1.2%
Cost of Capital (estimated)8%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

65/100
BullishWeighted across 6 signals
DCF Discount
26990.4% discount to price
100
FCF Yield
1101.5% trailing FCF yield
100
ROIC vs WACC
ROIC 1.2% vs WACC 8.0% (0.2x)
8
Net Debt / FCF
1.8x net debt to FCF
36
Buybacks
Share count flat
50
FCF CAGR (5Y)
318.5% 5Y FCF CAGR
100
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, Net Debt / FCF.

Narrative Details

70/100
Strong
-1 vs previousVs 6-Month Baseline:Low (20th pct)Weighted across 5 recent drivers
Trend: StableConfidence: 100%Updated: 19h ago
Sources: 89 (78 News · 11 Analyst)
Drivers(last 30 days)
63 news sentiment+1.2
12 regulatory scrutiny+0.8
2 earnings beat+0.0
Upgrade headlines+0.0
11 analyst reiterations0.0

Trend Details

93/100
StrongAs of 2026-05-08311 daily bars used
6M Relative Strength vs SPY+140.2%
3M Relative Strength vs SPY+40.4%
21 EMA vs 50 EMA+9.6%
Price vs 21 EMA78 · +5.2%
Price vs 50 EMA95 · +15.3%
21 EMA vs 50 EMA96 · +9.6%
3M RS vs SPY100 · +40.4%
6M RS vs SPY100 · +140.2%
Distance from 52W High91 · -4.3%

Investment Coach

Updating... 1d ago
BUYConfidence: 61%
Thesis
Coherent, Inc. presents a compelling buy opportunity with an estimated fair value dramatically exceeding the current price by over 28,700%, supported by strong fundamentals and a stable narrative score. Despite trailing returns relative to its cost of capital, the company's high free cash flow yield and bullish fundamental indicators suggest significant upside potential.
Key Risk
The primary risk is the company's return on invested capital (ROIC) remaining below its weighted average cost of capital (WACC), which could undermine value creation.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC vs WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 9.45%5 Year CAGR: 278.19%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$557,548$1,074$893$1,070$728$721$434$316$314$257$181$182$125$133$131$114$86$64$64$65$56

How Intrinziq Estimates Fair Value

Intrinziq estimates Coherent, 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.

Coherent, Inc.Technology

Coherent, Inc. provides lasers, laser-based technologies, and laser-based system solutions for a range of commercial, industrial, and scientific research applications. It operates in two segments, Original Equipment Manufacturers (OEM) Laser Sources and Industrial Lasers & Systems. The company designs, manufactures, markets, and services lasers, laser tools, precision optics, and related accessories; and laser measurement and control products. Its products are used for applications in microelectronics, materials processing, OEM components and instrumentation, and scientific research and government programs. The company markets its products through a direct sales force in the United States, as well as through direct sales personnel and independent representatives internationally. Coherent, Inc. was founded in 1966 and is headquartered in Santa Clara, California. As of July 1, 2022, Coherent, Inc. operates as a subsidiary of II-VI Incorporated.