Is Ciena Corp (CIEN) undervalued or overvalued?

Our model estimates a fair value of about $132 against a price of $332.73 (Data under review, +0% to fair value). It blends a 10-year DCF, sector multiples and earnings-power value and is a model estimate, not advice.

What is the X-Ray Score for CIEN?

Ciena Corp has an X-Ray Score of 39 out of 100, built from valuation, growth, profitability, financial health and dividend lenses ranked against Information Technology peers.

Where does the data for CIEN come from?

Financial statements come from SEC EDGAR filings, prices from exchange price feeds, and industry betas and equity risk premium from Damodaran Online (NYU Stern).

Ciena Corp (CIEN)

Information Technology · Communications Equipment · US stock · S&P 500 component

$332.73 ▼ -23.79 (6.67%)

At close 16 Oct 2026 · USD · Volume 3,196,800

Compare with ANET Historical data Research report SEC filings

Fair valueData under review

$132

$66fair band $93–$172$199

Day's range

$330.99 – $354.60

52-week range

$159.56 – $637.51

About Ciena Corp

Ciena builds networking equipment and software that carry data over optical fibre. Its products include optical transport systems, routing and switching, network automation software and related services. Customers are telecom service providers, cloud and content companies, submarine network operators, governments and large enterprises. The company is organised around networking platforms, platform software and services, automation software and global services.

Revenue comes from hardware, software licences and ongoing services, and customer spending follows network build-out cycles. It totals $6.0 billion over the last twelve months, rising 9.5% a year across three years. The operating margin is 12.3%, and the business earns a profit of 18% on the capital invested in it. Ciena has net debt of 0.8 times EBITDA and pays no dividend. On the site's X-Ray Score it receives 39 out of 100.

Written with AI from public information and the filing figures on this page, then checked automatically for unsupported numbers. It can contain mistakes: read the company's own filings below before relying on it.

Price chart

Historical data & CSV

52-wk range $159.56 – $637.51Volume 3,196,800Daily, split-adjusted

Vitals

Market cap$48.6B

52-week range$159.56 – $637.51

Volume (last day)3,196,800

P/E (TTM)74.1

EBIT / EV yield1.5%

Free-cash-flow yield1.7%

Dividend yieldNo dividend

Revenue (TTM)$6.0B

Net income (TTM)$654M

Operating margin12.3%

Return on capital18.2%

Debt incl. leases$3.2B

Cash & securities$2.6B

Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies like Apple). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.

Fair value estimate

$132model spread $127 – $138

Data under review +0.0% to fair value

Equal blend of three models: peer multiples, a fundamentals-adjusted multiple (growth, ROIC and margin) and a 10-year DCF scaled to the market's average. Earnings-power value (no growth) is a floor and not part of the blend. Model uncertainty is Medium, so the safety margin is 30%.

Earnings are far above the company's own 3-year history, so models would extrapolate a possible peak

Price $333

Undervalued < $93Fair $93 – $172Overvalued > $172

10-year DCF (market-scaled)

$112

Peer multiples

$153

Earnings power floor (not blended)

$26

Fundamentals-adjusted multiple

$132

Growth the price implies

34.2%/yr

A model estimate, not a price target or recommendation. Inputs: risk-free 5.09%, equity risk premium 4.23% (Damodaran). How it works.

What this means

Read the lenses below

The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.

Before you invest · decision checklist

I understand how this company makes money Business quality is average or better ✓ 51 The price is not above fair value $132 fair value Debt looks manageable 0.8× EBITDA Revenue has been growing 9.5% a year Profits are backed by cash There are no red flags none raised I know what share of my savings this would be

Ticked boxes are filled in from our data; the rest are yours to answer.

The five-lens scan

Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.

Valuation Weak

20/100

Expensive against its sector on earnings and cash flow.

See the numbers →

EBIT / EV yield1.5%

Free-cash-flow yield1.7%

Fair value vs price0.4×

Growth Weak

39/100

Growing slower than most of its sector.

See the numbers →

Revenue growth (3y)9.5%

EPS growth (3y)-5.3%

Growth consistency70%

Profitability Weak

47/100

Earns lower returns on its capital than most peers.

See the numbers →

Return on invested capital18.2%

Operating margin12.3%

Gross profitability33.2%

Financial health Fair

55/100

Balance sheet is in typical shape for its sector.

See the numbers →

Piotroski F-Score7 / 9

Net debt / EBITDA0.8×

Interest cover10.6×

Dividends None

–/100

Pays no dividend.

See the numbers →

Quarterly results: last 6 quarters

+23.6%

May '25

+29.4%

Aug '25

+20.3%

Nov '25

+33.1%

Jan '26

+39.5%

May '26

+37.0%

Aug '26

Revenue against the same quarter a year earlier. Latest quarter revenue $1.7B, diluted EPS $1.83.

Compare with peers

ANET Arista Networks, Inc.62 FFIV F5, Inc.60 MSI Motorola Solutions, In...49 CSCO Cisco Systems, Inc.44

Other Communications Equipment companies by X-Ray Score.

Fundamentals checklist

● 2 Good · ● 6 Average · ● 7 Bad

Cash quality

Earnings backed by cashAverage

Free-cash-flow yieldBad

Risk models

Altman Z''Average

Piotroski F-ScoreGood

Growth

EPS growth (3y)Bad

Revenue growth (3y)Average

Growth consistencyBad

Balance sheet

Current ratioGood

Net debt / EBITDAAverage

Interest coverBad

Valuation

Fair value vs priceBad

EBIT / EV yieldBad

Profitability

Return on invested capitalAverage

Operating marginBad

Gross profitabilityAverage

Each check is graded against the company's sector, not a fixed number. Checklist score 39/100.

Financials

	FY21	FY22	FY23	FY24	FY25
Revenue	$3.6B	$3.6B	$4.4B	$4.0B	$4.8B
Operating income	$495M	$223M	$358M	$167M	$198M
Net income	$500M	$153M	$255M	$84M	$123M
Operating cash flow	$542M	−$168M	$168M	$515M	$806M
Operating margin	13.7%	6.1%	8.2%	4.1%	4.1%
Free cash flow	$462M	−$259M	$62M	$378M	$665M
Diluted EPS	$3.19	$1.00	$1.71	$0.58	$0.85

Fiscal years, from SEC filings.

Technical summary

Daily

Bearish

3 bullish · 2 neutral · 11 bearish

Weekly

Bearish

3 bullish · 1 neutral · 8 bearish

Monthly

Bullish

5 bullish · 1 neutral · 2 bearish

Moving averages (daily)

SMA 10	401.0	Bearish
EMA 10	380.0	Bearish
SMA 20	381.8	Bearish
EMA 20	380.6	Bearish
SMA 50	377.9	Bearish
EMA 50	384.3	Bearish
SMA 100	413.6	Bearish
EMA 100	395.0	Bearish
SMA 200	399.9	Bearish
EMA 200	370.1	Bearish

Oscillators (daily)

RSI (14)	39.47	Neutral
MACD (12, 26)	1.52	Bullish
Momentum (12)	-5.43	Bearish
Stochastic %K (14)	1.41	Bullish
Williams %R (14)	-98.59	Bullish
CCI (20)	-97.25	Neutral

Pivot points (classic, last session)

300.7

315.8

324.3

Pivot

339.4

347.9

363.1

371.5

Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.