Seagate Technology Holdings plc (STX) Stock Valuation — PE Analysis
Computer Hardware · NASDAQ
Current Price
$764.43
PE Ratio (TTM)
52.6x
Intrinsic Value
$1,218.35
+37.3% margin of safety
COMPETITIVE MOAT
↑Economies of Scale in Manufacturing
Seagate benefits from massive production volumes, leading to lower per-unit costs. This scale advantage is difficult for smaller competitors to replicate, especially in high-capacity drives.
↑HAMR Technology Leadership
Seagate's Heat-Assisted Magnetic Recording (HAMR) technology offers a path to higher storage densities. This innovation provides a competitive edge in meeting the growing demand for data storage capacity.
↑Strong Enterprise Customer Relationships
The company has established long-term relationships with major cloud providers and enterprises. These deep ties create switching costs and ensure consistent demand for their storage solutions.
INVESTMENT RISKS
↓Dependence on Cloud and Enterprise Spending
Seagate's revenue is heavily reliant on capital expenditures by cloud providers and enterprises. Any slowdown in their IT spending could significantly impact demand.
↓Supply Chain Vulnerabilities
The company's manufacturing operations are susceptible to disruptions in the global supply chain for components. This can affect production and delivery timelines.
↓Rapid Technological Obsolescence
The pace of technological advancement in storage is rapid. Failure to innovate and adapt to new technologies could lead to market share erosion.
Base case
STX base case PE valuation
At a current price of $764.43, the base case PE valuation puts STX fair value near $1,218.35 per share. That figure assumes 20.0% yearly earnings growth, a target PE multiple of 50x, and a 10% discount rate.
Intrinsic Value
$1,218.35
Margin of safety
+37.3%
Expected annual return
+9.8%
Base case assumptions: 20.0% annual earnings growth, 50x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
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 STX PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Seagate Technology Holdings plc respond.
Open PE Calculator for STXCompany Overview
Seagate Technology Holdings plc, headquartered in Dublin, Ireland, is a global provider of advanced data storage technology and solutions, with operations spanning Singapore, the United States, the Netherlands, and other international regions. The company's extensive product portfolio encompasses a wide array of mass capacity storage offerings. These include enterprise-grade nearline hard disk drives (HDDs), solid-state drives (SSDs), and complete enterprise nearline systems, alongside specialized HDDs for video and imaging, and network-attached storage (NAS) drives. Beyond these, Seagate also supports legacy systems with Mission Critical HDDs and SSDs. Its consumer-focused segment features external storage devices sold under popular lines such as Seagate Ultra Touch, One Touch, and Expansion, as well as the premium LaCie brand. The company's product range further extends to internal desktop and notebook drives, HDDs for digital video recorders (DVRs), and high-performance gaming SSDs. Moreover, Seagate delivers the Lyve edge-to-cloud platform, an innovative solution designed for managing and transferring vast amounts of data. Its clientele primarily consists of original equipment manufacturers (OEMs), distributors, and retailers. Established in 1978, Seagate Technology Holdings plc continues to be a leader in the data storage industry.
Financial Metrics — STX PE Stock Valuation Data
PE Ratio (TTM)
52.6x
PEG Ratio
0.48
Earnings Yield
1.90%
ROE (TTM)
348.2%
Revenue/Share (TTM)
$55.68
Dividend Yield
0.38%
Debt/Equity
0.09x
Frequently Asked Questions
What is the PE ratio of STX?
The trailing twelve-month PE ratio of STX reflects how much investors pay per dollar of Seagate Technology Holdings plc's earnings. This metric is most useful when compared to Computer Hardware peers and the company's own historical range.
Is STX overvalued based on PE ratio?
STX's PE of 52.6x combined with a PEG ratio of 0.48 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 STX stock using PE ratio?
To value Seagate Technology Holdings plc using PE: (1) Compare the current PE (52.6x) against the Computer Hardware median to assess relative pricing, (2) check the PEG ratio (0.48) 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 STX?
STX's PEG ratio is 0.48, calculated by dividing the PE ratio (52.6x) 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 STX stock valuation?
PE ratio gives a quick relative read — how STX is priced versus Computer Hardware peers. DCF provides an absolute value based on projected free cash flows. For STX, with a strong ROE of 348.2%, 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 STX 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 STX with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.