Medical - Diagnostics & Research · NASDAQ
Current Price
$120.37
Intrinsic Value
Use the calculator below to estimate
Run a PE ratio stock valuation on Illumina, Inc. with auto-filled earnings data, adjustable target PE, and instant fair value estimate.
Illumina, Inc. provides sequencing and array-based solutions for genetic and genomic analysis. Its products and services serve customers in a range of markets enabling the adoption of genomic solutions in research and clinical settings for applications in the life sciences, oncology, reproductive health, agriculture, and other emerging segments. The company provides instruments and consumables used in genetic analysis; and genotyping and sequencing services, instrument service contracts, and development and licensing agreements, as well as cancer detection testing services. Its customers include genomic research centers, academic institutions, government laboratories, and hospitals, as well as pharmaceutical, biotechnology, commercial molecular diagnostic laboratories, and consumer genomics companies. The company markets and distributes its products directly to customers in North America, Europe, Latin America, and the Asia-Pacific region, as well as sells through life-science distributors in various markets within Europe, the Asia-Pacific region, Latin America, the Middle East, and Africa. The company was incorporated in 1998 and is based in San Diego, California.
Earnings Yield
4.62%
ROE (TTM)
34.9%
Based on trailing twelve-month data, ILMN has earnings per share of N/A and trades at a PE ratio of N/A. These are key inputs for stock valuation using the PE ratio method.
The trailing twelve-month PE ratio of ILMN reflects how much investors pay per dollar of Illumina, Inc.'s earnings. This metric is most useful when compared to Medical - Diagnostics & Research peers and the company's own historical range.
Whether ILMN is overvalued depends on comparing its PE ratio to Medical - Diagnostics & Research peers, historical averages, and growth expectations. A PE above the sector average may indicate overvaluation, but high-growth companies often command premium multiples. Consider pairing PE analysis with a DCF model for a more complete picture.
To value Illumina, Inc. using PE: (1) Compare the current PE against the Medical - Diagnostics & Research median to assess relative pricing, (2) check the PEG ratio 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.
The PEG ratio divides the PE ratio by the expected earnings growth rate, providing a growth-adjusted valuation metric. A PEG below 1.0 may indicate undervaluation relative to growth, while above 2.0 may suggest overvaluation. PEG is most reliable for companies with stable, predictable earnings growth.
PE ratio gives a quick relative read — how ILMN is priced versus Medical - Diagnostics & Research peers. DCF provides an absolute value based on projected free cash flows. For ILMN, with a strong ROE of 34.9%, 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.
