Assessing SEALSQ (LAES) Valuation As Growth Meets Losses And A Rich Price To Book Multiple

SEALSQ stock performance snapshot

SEALSQ (LAES) has drawn attention after recent trading, with shares closing at $3.52 and showing negative returns over the past week, month, past 3 months, and year as investors reassess semiconductor exposure.

See our latest analysis for SEALSQ.

The recent 12% one day share price decline and 42.9% 3 month share price return decline suggest fading momentum for SEALSQ, with the 12 month total shareholder return also down 12% despite growing interest in semiconductor security and IoT exposure.

If SEALSQ’s recent volatility has you looking around the sector, it could be a good time to see what else is moving through our screener of 33 AI infrastructure stocks.

With annual revenue growth of 55.3% but a net loss of $30.443m and a share price sitting well below the $7.50 analyst target, is SEALSQ being overlooked, or is the market already factoring in its future growth?

Price to book of 5.5x: Is it justified?

SEALSQ trades on a P/B of 5.5x, which sits above both the wider US semiconductor group and its closer peer set despite the recent share price pullback.

P/B compares a company’s market value to its book value, so a higher multiple usually reflects expectations for stronger future returns or valuable intangible assets. For SEALSQ, that 5.5x level is being applied to a business that is currently loss making, with a reported net loss of $30.443m and a negative return on equity of 25.77%.

That sets up a clear tension. On one side, revenue is forecast to grow around 55.3% per year, which is described as both high and faster than the US market. On the other side, earnings have declined by about 58.8% per year over the past five years and the company remains unprofitable, so the current premium valuation rests on how investors weigh those growth expectations against ongoing losses.

Compared with the US semiconductor industry average P/B of 4.2x, SEALSQ’s 5.5x multiple stands out as expensive. The same conclusion holds against a closer peer group, where the average P/B is 4.1x, again putting SEALSQ on a richer valuation than similar names. With insufficient data to calculate a fair P/B ratio or a discounted cash flow estimate, there is limited quantitative evidence that this premium could narrow toward a specific level.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-book of 5.5x (OVERVALUED)

However, the current net loss of $30.443m against revenue of $10.978m and the 12% one year total shareholder return decline could challenge that premium story.

Find out about the key risks to this SEALSQ narrative.

Build Your Own SEALSQ Narrative

If you see the numbers differently or prefer to test your own assumptions, you can quickly build a personalised SEALSQ view in just a few minutes by starting with Do it your way.

A great starting point for your SEALSQ research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.

Looking for more investment ideas?

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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.

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