<div id="readability-page-1"><div><ul> <li>If you are wondering whether Celestica at around US$564.36 is still offering value after a strong run, this article breaks down what the current price may be implying about the stock.</li> <li>The share price return data is eye catching, with Celestica showing 9.5% over 7 days, 38.8% over 30 days, 36.1% year to date and 322.8% over 1 year, while the 3 year and 5 year returns are very large.</li> <li>Recent company headlines have focused on Celestica's role in electronics manufacturing and its positioning in areas investors often associate with long term technology trends. This news flow helps frame why the returns data looks so strong and why some investors are reassessing the balance between potential reward and risk.</li> <li>Even with this backdrop, Celestica currently records a value score of 1/6. The next sections will walk through what different valuation methods suggest about that score, before finishing with a broader way to think about valuation that goes beyond the numbers alone.</li> </ul> <p>Celestica scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.</p> <h3>Approach 1: Celestica Discounted Cash Flow (DCF) Analysis</h3> <p>A Discounted Cash Flow, or DCF, estimates what a stock could be worth by projecting the cash the business may generate in the future and discounting those amounts back to today using a required rate of return.</p> <p>For Celestica, the model used is a 2 Stage Free Cash Flow to Equity approach, based on last twelve months free cash flow of about $588.5 million. Analyst inputs and extrapolated figures are used to project free cash flow out to 2035, with specific estimates such as $527.7 million in 2026, $488.6 million in 2027 and $982.1 million in 2028. Beyond the explicit analyst years, Simply Wall St extrapolates further free cash flow projections for 2029 to 2035.</p> <p>Discounting these projected cash flows back to today gives an estimated intrinsic value of $282.15 per share. Compared with the recent share price around US$564.36, the DCF output implies the stock is about 100.0% overvalued on this model alone.</p> <p><strong>Result: OVERVALUED</strong></p> <p>Our Discounted Cash Flow (DCF) analysis suggests Celestica may be overvalued by 100.0%. Discover 6 high quality undervalued stocks or create your own screener to find better value opportunities.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/6b48679f-be15-4048-9b13-af27391c8b36/chart/dcf/query-ZGF0ZT0yMDI2LTA1LTA3?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/6b48679f-be15-4048-9b13-af27391c8b36/chart/dcf/query-ZGF0ZT0yMDI2LTA1LTA3"/><figcaption>CLS Discounted Cash Flow as at May 2026</figcaption></figure> <p>Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Celestica.</p> <h3>Approach 2: Celestica Price vs Earnings (P/E)</h3> <p>For a profitable company, the P/E ratio is a useful way to think about what you are paying for each dollar of earnings. It gives a quick sense of how the market is weighing the stock relative to its earnings power.</p> <p>What counts as a &#34;normal&#34; or &#34;fair&#34; P/E depends on how the market views the company’s growth prospects and risk profile. Higher expected growth or lower perceived risk tends to support a higher P/E, while lower expected growth or higher risk tends to support a lower one.</p> <p>Celestica currently trades on a P/E of 49.64x. This is above the Electronic industry average of about 31.51x and the peer group average of 41.84x. Simply Wall St also calculates a proprietary “Fair Ratio” of 66.18x, which is the P/E that might be expected after considering factors such as earnings growth, profit margins, industry, market capitalization and risk.</p> <p>The Fair Ratio can be more informative than a simple peer or industry comparison because it adjusts for company specific characteristics instead of assuming all stocks should trade at similar levels. Compared with this Fair Ratio of 66.18x, Celestica’s current P/E of 49.64x suggests the stock is undervalued on this metric.</p> <p><strong>Result: UNDERVALUED</strong></p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/6b48679f-be15-4048-9b13-af27391c8b36/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTA1LTA3?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/6b48679f-be15-4048-9b13-af27391c8b36/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTA1LTA3"/><figcaption>TSX:CLS P/E Ratio as at May 2026</figcaption></figure> <p>P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 3 top founder-led companies.</p> <h2>Upgrade Your Decision Making: Choose your Celestica Narrative</h2> <p>Earlier it was mentioned that there is an even better way to understand valuation, so Narratives are Simply Wall St's way for you to write the story behind your numbers. They link what you believe about Celestica's business to a financial forecast and then to a Fair Value, which the platform compares with the current price to help you decide whether you see the stock as attractive or expensive. The platform keeps that view updated automatically as new earnings and news come in, and it lets very different perspectives sit side by side. For example, one investor may build a Narrative around higher Celestica earnings of US$2.5b by 2029 at a certain P/E, while another uses US$1.8b with a different P/E, all within the Community page that millions of investors already use.</p> <p>Do you think there's more to the story for Celestica? Head over to our Community to see what others are saying!</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/6b48679f-be15-4048-9b13-af27391c8b36/chart/quote-price/query-ZGF0ZT0yMDI2LTA1LTA3?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/6b48679f-be15-4048-9b13-af27391c8b36/chart/quote-price/query-ZGF0ZT0yMDI2LTA1LTA3"/><figcaption>TSX:CLS 1-Year Stock Price Chart</figcaption></figure> <p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p><div><h3><strong>New: </strong>AI Stock Screener &amp; Alerts</h3><p>Our new AI Stock Screener scans the market every day to uncover opportunities.</p><div><p>• Dividend Powerhouses (3%+ Yield)<br/>• Undervalued Small Caps with Insider Buying<br/>• High growth Tech and AI Companies</p><p>Or build your own from over 50 metrics.</p></div><p>Explore Now for Free</p></div></div></div>

<p>Celestica (TSX: CLS) has seen a remarkable 323% surge in its stock price over the past year, currently trading at approximately US$564.36. Despite strong returns, a Discounted Cash Flow (DCF) analysis suggests the stock is overvalued by 100%, estimating an intrinsic value of $282.15 per share. Conversely, its Price-to-Earnings (P/E) ratio of 49.64x indicates it may be undervalued compared to the industry average. Investors are encouraged to consider various valuation methods and narratives to assess the stock's attractiveness amid its recent performance.</p>

Is It Too Late To Consider Celestica (TSX:CLS) After A 323% One Year Surge?