AlphaMadera's AlphaVal page classifies Power Integrations, Inc. as a Cyclical & Capital-Intensive business and values it using Normalized Earnings × Cycle Multiple, then compares the result to the current market price to flag POWI as undervalued, fairly valued, or overvalued.

What is Power Integrations, Inc.'s fair value?

Fair value for POWI comes from a Normalized Earnings × Cycle Multiple model -- the approach AlphaVal selected for this company's Cyclical & Capital-Intensive classification. The live AlphaVal page shows bear, base, and bull scenarios alongside the key assumption behind each.

How does AlphaMadera value POWI?

AlphaVal routes each company to one of ten valuation archetypes based on its business model. POWI was classified as Cyclical & Capital-Intensive and is valued using Normalized Earnings × Cycle Multiple, built from POWI's most recent reported fundamentals.

POWI - Power Integrations, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $85.00 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Cyclical & Capital-Intensive 80% confidence

Primary model: Normalized Earnings × Cycle Multiple

Valuation Signal Overvalued Strong

Trading 136.3% above fair value

Current Price $62.75

Bear Case $19.92 68.3% downside ($19.92 - $62.75) / $62.75 = -68.3% $1.66 × 12x

Fair Value $26.56 57.7% downside ($26.56 - $62.75) / $62.75 = -57.7% $1.66 × 16x

Bull Case $33.20 47.1% downside ($33.20 - $62.75) / $62.75 = -47.1% $1.66 × 20x

Adjust Assumptions

Cycle P/E Multiple

16.0x

Normalized EPS

1.66$

Key Value Driver

Through-cycle normalized EPS ($1.66)

Terminal Value % of EV

Implied Market Multiple 37.8x

Market is pricing in (growth)

Plain-Language Summary

Using 7-year normalized EPS of $1.66 at a 16x cycle multiple, the base-case value is $26.56 per share. P/TBV cross-check: 6.1x.

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above -- shown only as an outside comparison.

Average Target (17 analysts) $85.00

Analyst Range $80.00 – $90.00

Divergence from AlphaVal 69%

Warnings

⚠ Price-to-book value of 6.1x is above the normal range for this type of business (0.7x-2.0x). The stock may already price in a strong cycle.

ℹ Wall Street's average price target is $85.00 (from 17 analysts). Our estimate is 69% below the consensus -- consider that gap carefully.

Key Risks

Standard 10-year DCF produces unreliable terminal values for cyclicals
'Cheap' P/E at cycle peak is the most common value trap — normalize first
Captive finance subsidiaries have different risk profiles from manufacturing