Super Micro Computer, Inc. (SMCI) Fair Value & PE Analysis
Computer Hardware · NASDAQ
Current Price
$30.46
PE Ratio (TTM)
14.6x
Intrinsic Value
$38.84
+21.6% margin of safety
What Is Super Micro Computer, Inc.'s Fair Value?
As of 2026-06-12, applying a 15.0x earnings multiple to Super Micro Computer, Inc.'s (SMCI) earnings per share of $2.09 yields a fair value estimate of $38.84 per share, versus a market price of $30.46.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $30.47 to $48.5. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How our PE model works · Recalculate in PE mode · SMCI intrinsic value (DCF view)
Is Super Micro Computer, Inc. (SMCI) Overvalued?
At $30.46, SMCI trades about 21.6% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough for us to call it cheap outright.
COMPETITIVE MOAT
↑AI Server Customization Expertise
SMCI excels at building highly customized AI servers. This deep integration and tailored approach for specific AI workloads creates sticky customer relationships.
↑Agile Manufacturing & Supply Chain
Their flexible manufacturing allows rapid adaptation to evolving AI hardware demands. This agility is crucial in the fast-paced AI server market.
↑Early Mover in AI Infrastructure
SMCI established itself early as a key provider of AI server infrastructure. This head start has built significant brand recognition and market share.
INVESTMENT RISKS
↓Intense Competition
The AI server market is highly competitive with major players like Dell and HPE. SMCI faces constant pressure to innovate and maintain pricing.
↓Customer Concentration
Reliance on a few large customers for a significant portion of revenue poses a risk. Losing a major client could materially impact financial performance.
↓Supply Chain Volatility
Disruptions in the global supply chain for critical components can impact production and delivery timelines. This is a persistent challenge in hardware manufacturing.
Base case
SMCI base case PE valuation
Intrinsic Value
$38.84
Margin of safety
+21.6%
Expected annual return
+5.0%
Base case assumptions: 8.2% annual earnings growth, 15x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
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., established in 1993 and headquartered in San Jose, California, is a global leader specializing in the design and production of high-performance server and data storage solutions. These sophisticated offerings, founded on a modular and open architecture, are distributed internationally across the United States, Europe, and Asia. The company's diverse product portfolio spans a wide array of computing infrastructure. This includes entire server and storage systems, innovative modular blade servers, individual blades, powerful workstations, full rack solutions, and networking devices. They also supply essential server sub-systems, alongside specialized server management and security software. More specifically, their offerings comprise application-optimized server designs, rackmount and blade server options, robust storage infrastructure, and critical subsystems and accessories like server boards, chassis, power supplies, and various other components. A key software suite is their Server Management Suite, featuring tools such as Supermicro Server Manager, Supermicro Power Management, Supermicro Update Manager, SuperCloud Composer, and SuperDoctor 5. Beyond its hardware and software offerings, Super Micro Computer, Inc. delivers a comprehensive suite of professional services. These encompass the integration, configuration, and software upgrades and updates for their server and storage products. They also provide detailed technical documentation and oversee service projects from initial requirement identification and plan creation through execution, verification testing, and specialized training. Furthermore, the company ensures robust post-sales support through its help desk, on-site product assistance, and continuous maintenance and technical support for its full product range. Super Micro's cutting-edge solutions cater to a broad spectrum of demanding markets, including large enterprise data centers, burgeoning cloud computing environments, advanced artificial intelligence applications, and the rapidly expanding 5G and edge computing sectors. The company reaches its clientele through diverse sales channels, utilizing direct and indirect sales teams, a network of distributors, value-added resellers, system integrators, and original equipment manufacturers.
Financial Metrics — SMCI PE Stock Valuation Data
PE Ratio (TTM)
14.6x
PEG Ratio
0.32
Earnings Yield
6.85%
ROE (TTM)
18.2%
Revenue/Share (TTM)
$56.36
Debt/Equity
0.89x
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 14.6x combined with a PEG ratio of 0.32 provides a growth-adjusted perspective. A PEG below 1.0 suggests SMCI may be undervalued relative to its 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 (14.6x) against the Computer Hardware median to assess relative pricing, (2) check the PEG ratio (0.32) 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 0.32, calculated by dividing the PE ratio (14.6x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. 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 18.2%, 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 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.