• If you are wondering whether TTM Technologies at US$189.60 is priced for strength or stretched too far, the next sections will focus squarely on what the current share price implies about value.
• The stock has been volatile lately, with a small decline of 0.6% over the last week but a 20.4% gain over 30 days, while returns year to date are 168.5% and the 3 year and 5 year returns are both well into double digit multiples.
• Recent coverage has focused on TTM Technologies as a fast moving tech stock, with attention on how its share price performance compares with peers and wider technology benchmarks. Commentators have also highlighted how such rapid gains can change the way investors think about risk and valuation, which helps explain the strong interest around the stock.
• Despite this, TTM Technologies currently has a valuation score of 0 out of 6. The rest of this article will walk through traditional valuation approaches for the stock, then finish with a broader way of thinking about what that score really means for you.

TTM Technologies scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: TTM Technologies Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model projects a company’s future cash flows and then discounts them back to today’s dollars to estimate what the business might be worth right now.

For TTM Technologies, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections. The latest twelve month free cash flow is reported at about $43.19 million. Analyst estimates extend to 2028, with projected free cash flow of $468.92 million, and Simply Wall St then extrapolates further out to 2035 using its own growth assumptions. All figures are assessed in $.

After discounting these projected cash flows back to today, the model arrives at an estimated intrinsic value of about $160.96 per share. Compared with a current share price of $189.60, that implies the stock is about 17.8% above this DCF estimate, so on this model TTM Technologies screens as overvalued rather than cheap.

Result: OVERVALUED

Our Discounted Cash Flow (DCF) analysis suggests TTM Technologies may be overvalued by 17.8%. Discover 47 high quality undervalued stocks or create your own screener to find better value opportunities.

Approach 2: TTM Technologies Price vs Earnings

For a profitable company, the P/E ratio is a useful shorthand because it links what you pay for the stock to the earnings the business is already generating. It gives you a quick sense of how many years of current earnings the market is pricing into the share price.

What counts as a "normal" P/E depends on how the market views growth potential and risk. Higher expected growth or lower perceived risk can support a higher P/E, while weaker growth expectations or higher risk usually line up with a lower multiple.

TTM Technologies currently trades on a P/E of 100.83x. That sits well above the Electronic industry average P/E of 34.13x and the peer group average of 52.63x. Simply Wall St’s Fair Ratio for TTM Technologies is 64.37x, which is its proprietary view of what the P/E could be given factors such as earnings growth, industry, profit margins, market cap and company specific risks.

This Fair Ratio can be more informative than a simple comparison with peers or industry averages because it attempts to adjust for those company nuances. With the current P/E of 100.83x standing higher than the 64.37x Fair Ratio, the stock screens as overvalued on this metric.

Result: OVERVALUED

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Upgrade Your Decision Making: Choose your TTM Technologies Narrative

Earlier it was mentioned that there is an even better way to understand valuation. Narratives bring that to life by letting you set a clear story for TTM Technologies, link it to specific assumptions for future revenue, earnings and margins, and then see the Fair Value that falls out of those numbers on Simply Wall St's Community page, which is used by millions of investors. Instead of relying only on one DCF or one P/E comparison, you choose the Narrative that best matches your view, for example a more optimistic fair value of about US$170 per share or a more cautious fair value of about US$72 per share. You can then compare that Fair Value with the current market price to help decide whether the stock looks worth buying, holding or selling on your terms. As news, earnings or guidance arrive, Narratives update automatically so the story, the forecast and the Fair Value stay aligned. This means your view on TTM Technologies can adjust in step with the information rather than being locked into a single static model.

Do you think there's more to the story for TTM Technologies? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.