Aviat Fair Value
What is the fair value of Aviat?
As of 2025-07-03, the Fair Value of Aviat Networks Inc (AVNW) is -6.72 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 24.61 USD, the upside of Aviat Networks Inc is -127.3%.
Is Aviat a good investment?
With the market price of 24.61 USD and our fair value calculation, Aviat Networks Inc (AVNW) is not a good investment. Investing in Aviat stocks now will result in a potential loss of 127.3%.
Note: valuation result may not be accurate due to the company's negative EPS.
Peter Lynch's formula is:
The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.
| Historical Earnings | ||||||
| 07-2020 | 07-2021 | 07-2022 | 06-2023 | 06-2024 | 5Y Avg | |
| Net income | 0.3 | 110.1 | 21.2 | 11.5 | 10.76 | 31 |
| YoY growth | -96.9% | 36600% | -80.7% | -45.8% | -6.4% | 7274% |
| Market Cap (mil) | 312 |
| P/E | - |
| Forward P/E | 17.9x |
| EPS | -0.27 |
| Avg earnings growth rate | 7274% |
| TTM earnings | -3 |
Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.
Therefore, his formula to determine a company's fair value is:
Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG
PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.