Super Micro Computer, Inc. (SMCI) Fair Value & PE Analysis
Computer Hardware · NASDAQ
Current Price
$37.24
PE Ratio (TTM)
10.2x
Intrinsic Value
Outside reliable range
What Is Super Micro Computer, Inc.'s Fair Value?
The PE model output for Super Micro Computer, Inc. (SMCI) falls outside its reliable range, often because earnings are unusually low, negative, or volatile. Treat any single fair value number with extra caution here.
How the PE model works · Recalculate in PE mode · SMCI intrinsic value (DCF view)
Is Super Micro Computer, Inc. (SMCI) Overvalued?
Because the model output for SMCI is outside the reliable range, no overvalued or undervalued read is given here. Use the PE calculator below to test your own assumptions instead.
COMPETITIVE MOAT
↑AI Infrastructure Expertise
SMCI excels in designing and manufacturing high-performance servers optimized for AI workloads. This specialization allows them to meet the demanding computational needs of AI development.
↑Customization and Flexibility
The company offers highly configurable server solutions, enabling customers to tailor hardware to specific AI and HPC requirements. This adaptability fosters strong customer relationships.
↑Rapid Product Development Cycle
SMCI's ability to quickly integrate new technologies and components into their server designs allows them to stay ahead of the curve in the fast-evolving AI hardware market.
INVESTMENT RISKS
↓Concentration in AI Demand
While AI drives growth, over-reliance on this single segment makes SMCI vulnerable to shifts in AI investment or technological obsolescence.
↓Execution Risk on Ambitious Guidance
The company's aggressive revenue guidance for fiscal 2027, significantly above Wall Street expectations, presents a risk if they fail to meet these ambitious targets.
↓Geopolitical and Supply Chain Volatility
Global trade tensions and ongoing supply chain disruptions can impact manufacturing, logistics, and the cost of components, affecting SMCI's operations.
Base case
SMCI base case PE valuation
Base case assumptions: 20.0% annual earnings growth, 10.04x target PE, 10% discount rate, 5 year projection. Data as of 2026-08-21.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the SMCI PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Super Micro Computer, Inc. respond.
Open PE Calculator for SMCICompany Overview
Super Micro Computer, Inc., together with its subsidiaries, develops and sells server and storage solutions based on modular and open-standard architecture in the United States, Asia, Europe, and internationally. The company provides liquid and air-cooled AI servers for training and inferencing with integrated graphics processing units (GPUs) or PCIe based architectures; SuperBlade, MicroBlade, FlexTwin, GrandTwin, and BigTwin blade and multi-node systems; SuperStorage systems; Hyper, CloudDC, and WIO and rackmount systems; embedded (5G/IoT/Edge) systems; and MicroCloud server systems. It also offers workstations and networking devices; and modular server subsystems and accessories, including server boards, chassis, power supplies, and other accessories. In addition, the company provides remote system management solutions, such as Server Management suite comprising Supermicro Server Manager, Supermicro Power Management software, Supermicro Update Manager, SuperCloud Composer, and SuperDoctor 5. Further, the company identifies service requirements; creates and executes project plans; conducts verification testing; offers training; and provides technical documentation. Additionally, it offers rack level services from design to deployment for full rack and cluster level deployments of AI and HPC datacenters; help desk services and on-site product support; and warranties, maintenance, and technical support services. The company serves enterprise data centers, cloud computing, artificial intelligence, 5G, and edge computing markets through direct and indirect sales force, distributors, value-added resellers, system integrators, and original equipment manufacturers. Super Micro Computer, Inc. was incorporated in 1993 and is headquartered in San Jose, California.
Financial Metrics — SMCI PE Stock Valuation Data
PE Ratio (TTM)
10.2x
PEG Ratio
0.05
Earnings Yield
9.95%
ROE (TTM)
25.1%
Revenue/Share (TTM)
$64.91
Debt/Equity
0.46x
Frequently Asked Questions
What is the PE ratio of SMCI?
The trailing twelve-month PE ratio of SMCI reflects how much investors pay per dollar of Super Micro Computer, Inc.'s earnings. This metric is most useful when compared to Computer Hardware peers and the company's own historical range.
Is SMCI overvalued based on PE ratio?
SMCI's PE of 10.2x combined with a PEG ratio of 0.05 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Computer Hardware, a DCF analysis may be more appropriate.
How do I value SMCI stock using PE ratio?
To value Super Micro Computer, Inc. using PE: (1) Compare the current PE (10.2x) against the Computer Hardware median to assess relative pricing, (2) check the PEG ratio (0.05) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of SMCI?
SMCI's PEG ratio is 0.05, calculated by dividing the PE ratio (10.2x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for SMCI stock valuation?
PE ratio gives a quick relative read — how SMCI is priced versus Computer Hardware peers. DCF provides an absolute value based on projected free cash flows. For SMCI, with a strong ROE of 25.1%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See SMCI DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Technology valuationsP/E and DCF value SMCI with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.