Soitec (ENXTPA:SOI) Trades 31% Below Fair Value As Revenue Beats Guidance

Soitec (ENXTPA:SOI) reported first quarter fiscal 2027 revenue above guidance after Photonics-SOI sales for AI data centers doubled year-on-year, and its newly qualified Singapore 300mm fab entered high volume production.

See our latest analysis for Soitec.

The strong Photonics-SOI update comes after a mixed share price stretch for Soitec, with the stock down 25.8% on a 1 month share price return but still posting a very large year to date share price return and a 132.6% 1 year total shareholder return. However, the 3 year and 5 year total shareholder returns are both still in decline.

If Soitec’s AI data center exposure has caught your eye, this could be a good moment to broaden your research using the 54 AI infrastructure stocks

Bulls point to Soitec’s AI data center exposure and the stock’s very large 1 year gain, while bears flag the multi year shareholder losses and current loss making status. How does the valuation stack up against that split view?

Most Popular Narrative: 30.9% Undervalued

The most followed narrative currently anchors Soitec’s fair value at €138.89 versus the last close at €96.02, framing the recent share pullback against a higher central estimate.

The updated fair value estimate for Soitec rises from €77.87 to €138.89, reflecting analysts' higher price targets in the €130 to €200 range and their revised assumptions on revenue growth, profit margins, and forward P/E multiples.

Read the complete narrative.

Curious what sits behind that higher fair value for Soitec? The narrative is based on expectations of faster revenue expansion, a clear margin reset, and a richer future earnings multiple. The exact mix of those three inputs is what really matters.

Result: Fair Value of €138.89 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Soitec’s fair value story also hinges on inventory corrections easing, and on competition in silicon carbide substrates not eroding pricing and margins faster than expected.

Find out about the key risks to this Soitec narrative.

Another View on Soitec’s Valuation

The popular narrative says Soitec looks about 30.9% undervalued around €96.02 relative to a €138.89 fair value. Our DCF model, however, points in the opposite direction, with the stock trading well above an estimated future cash flow value of €15.91, which would suggest it is overvalued instead. Which framework do you weigh more heavily for your own thesis?

To see how this cash flow based view is built and where the biggest sensitivities sit, take a closer look at the SWS DCF model for Soitec using the Look into how the SWS DCF model arrives at its fair value.

Next Steps

Given the split sentiment around Soitec, this is a good time to review the data yourself, weigh the trade offs, and decide how the 1 key reward and 1 important warning sign fit into your own thesis using the 1 key reward and 1 important warning sign

Looking for more investment ideas beyond Soitec?

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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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