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A Look At IPG Photonics (IPGP) Valuation After Its Recent Share Price Surge

Simply Wall St·02/16/2026 22:13:44
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What IPG Photonics’ recent performance could mean for investors

IPG Photonics (IPGP) has drawn attention after a strong run, with the stock showing gains over the past week, month and past 3 months, alongside reported annual revenue of US$1,003.8m and net income of US$31.1m.

See our latest analysis for IPG Photonics.

The recent surge in IPG Photonics’ share price, with a 30 day share price return of 88.3% and a year to date share price return of 105.7%, contrasts with a 5 year total shareholder return of 32.9% and suggests that momentum has only recently strengthened.

If this rapid move has you thinking about related opportunities in industrial and automation technologies, you may want to scan our screener of 32 robotics and automation stocks for more potential candidates to research next.

With IPG Photonics trading around US$153.91 and sitting at a reported 9.6% premium to one intrinsic value estimate, the key question is whether the recent surge leaves upside on the table or whether the market is already pricing in future growth.

Most Popular Narrative: 60.2% Overvalued

Compared with the latest fair value estimate of about $96.08, IPG Photonics at $153.91 sits well above what the most followed narrative considers its worth, and that gap rests on some specific growth and margin assumptions.

Analysts are assuming IPG Photonics's revenue will grow by 8.1% annually over the next 3 years. Analysts assume that profit margins will increase from 22.8% today to 11.2% in 3 years time.

Read the complete narrative.

Curious what has to happen for IPG Photonics to live up to that price tag? The narrative leans heavily on stronger earnings, higher margins and a richer future P/E. Want to see how those moving parts line up over the next few years and how they feed into that fair value path?

Result: Fair Value of $96.08 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there is still the risk that geopolitical and tariff pressures, or softer welding and micromachining demand, could weaken margins and challenge that positive narrative.

Find out about the key risks to this IPG Photonics narrative.

Build Your Own IPG Photonics Narrative

If you look at the numbers and reach a different conclusion, or simply prefer to test your own assumptions with the same data, you can build a custom view in just a few minutes and see how your thesis stacks up, all by choosing to Do it your way.

A great starting point for your IPG Photonics research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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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.