Assessing NextVision Stabilized Systems (TASE:NXSN) Valuation After Raised 2025 Guidance And New 2026 Revenue Target

NextVision Stabilized Systems (TASE:NXSN) lifted its 2025 revenue guidance to about US$168 million and set a 2026 revenue target of US$275 million, citing strong customer orders and sizeable camera supply contracts.

See our latest analysis for NextVision Stabilized Systems.

The guidance upgrade and fresh camera orders come after a sharp run in the shares, with a 30 day share price return of 61.08% and a 1 year total shareholder return of 248.65%. This suggests momentum has been building as investors reassess growth potential and risk around the latest revenue targets.

If this kind of contract driven growth story interests you, it could be worth broadening your watchlist with aerospace and defense stocks.

With the shares up sharply, trading around ₪223.9 and sitting at a premium to the analyst price target and a modelled intrinsic value, you have to ask: is there still upside here, or is the market already pricing in that future growth?

Price-to-Earnings of 71.8x: Is it justified?

On a P/E of 71.8x at a last close of ₪223.9, NextVision Stabilized Systems trades richer than both its local peers and the broader Asian Electronic industry.

The P/E multiple tells you how much investors are currently willing to pay for each unit of earnings, which is especially watched for profitable tech hardware and electronics names. A higher multiple usually reflects strong growth expectations or confidence in earnings durability.

Here, the company is considered good value relative to an estimated fair P/E of 77.4x. This suggests the ratio is not far from a level the market could move towards. At the same time, that 71.8x multiple is expensive compared to the peer average of 57.2x and well above the Asian Electronic industry average of 26.9x, so the market is clearly pricing in much stronger earnings prospects than for typical sector names.

Explore the SWS fair ratio for NextVision Stabilized Systems

Result: Price-to-Earnings of 71.8x (OVERVALUED)

However, you also have contract concentration and a rich 71.8x P/E multiple, so any slowdown in orders or guidance reset could quickly change the story.

Find out about the key risks to this NextVision Stabilized Systems narrative.

Another View: Our DCF Model Flags a Premium

While the 71.8x P/E sits close to a fair ratio of 77.4x, our DCF model paints a different picture. It estimates fair value around ₪159.52 per share, compared with the current ₪223.9. This points to a sizeable premium that could limit upside if expectations cool.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out NextVision Stabilized Systems for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 876 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own NextVision Stabilized Systems Narrative

If you see the numbers differently, or simply prefer to test your own assumptions against the data, you can build a full narrative in minutes: Do it your way.

A great starting point for your NextVision Stabilized Systems research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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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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