Think of Enterprise Value as the theoretical takeover price. It is more comprehensive than market capitalization (Market Cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Applied Optoelectronics's Enterprise Value is $10,994.5 Mil.
Applied Optoelectronics's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was $-47.3 Mil. Therefore, Applied Optoelectronics's EV-to-EBIT ratio for today is -232.26.
*** Please note that the current Enterprise Value is calculated using the current market capitalization and the most recently available financial data. If key financial fields—Long-Term Debt & Capital Lease Obligation and Short-Term Debt & Capital Lease Obligation—are recorded as null in the latest reporting period, our data vendor will default to using data from the prior period with valid entries.
Applied Optoelectronics (NAS:AAOI) Enterprise Value Explanation
When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.
If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.
The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of Enterprise Value.
For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.
Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.
1. EV-to-EBIT is calculated as Enterprise Value divided by its EBIT.
Applied Optoelectronics's current Enterprise Value is $10,994.5 Mil.
Applied Optoelectronics's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $-47.3 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
Applied Optoelectronics's EV-to-EBITDA for today is:
Applied Optoelectronics's current Enterprise Value is $10,994.5 Mil.
Applied Optoelectronics's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $-16.1 Mil.
Applied Optoelectronics's current Enterprise Value is $10,994.5 Mil.
Applied Optoelectronics's Revenue for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $507.0 Mil.
Applied Optoelectronics's current Enterprise Value is $10,994.5 Mil.
Applied Optoelectronics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $-208.9 Mil.
Applied Optoelectronics's current Enterprise Value is $10,994.5 Mil.
Applied Optoelectronics's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $-418.3 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Applied Optoelectronics Enterprise Value Related Terms
Applied Optoelectronics Enterprise Value Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AAOI vs VIAV, ZBRA, VSAT: Enterprise Value Comparison
For the Communication Equipment subindustry, Applied Optoelectronics's Enterprise Value, along with its competitors' market caps and Enterprise Value data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Applied Optoelectronics Enterprise Value vs Hardware Industry
For the Hardware industry and Technology sector, Applied Optoelectronics's Enterprise Value distribution charts can be found below:
* The bar in red indicates where Applied Optoelectronics's Enterprise Value falls into.
Applied Optoelectronics Enterprise Value Calculation
Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
Applied Optoelectronics's Enterprise Value for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Enterprise Value of $10,994.5 Mil mean?
Applied Optoelectronics (AAOI) has a Enterprise Value of $10,994.5 Mil as of Jul. 02, 2026. Enterprise value equals the sum of market cap, debt and preferred shares less cash and equivalents. View historical data on Applied Optoelectronics and its competitors.
Is Applied Optoelectronics' Enterprise Value too high?
Applied Optoelectronics' current Enterprise Value is $10,994.5 Mil. Overall, Applied Optoelectronics has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Optoelectronics' Enterprise Value compare to VIAV and ZBRA?
Applied Optoelectronics' Enterprise Value of $10,994.5 Mil can be compared against companies in the Hardware industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Enterprise Value for a Hardware company?
A good Enterprise Value depends on the Hardware industry context. However, Enterprise Value should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Enterprise Value mean?
A high Enterprise Value can signal that a stock is expensive relative to its fundamentals. Enterprise value equals the sum of market cap, debt and preferred shares less cash and equivalents. View historical data on Applied Optoelectronics and its competitors. Applied Optoelectronics's current Enterprise Value is $10,994.5 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Optoelectronics stock overvalued right now?
Based on GuruFocus' analysis, Applied Optoelectronics (AAOI) is currently considered Significantly Overvalued. The stock's GF Value™ is $20.27, compared to a current price of $139.00 — trading 585.7% above its estimated fair value. The current Enterprise Value is $10,994.5 Mil. Applied Optoelectronics' overall GF Score™ is 46/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Enterprise Value calculated?
Enterprise Value is calculated from a company's financial statements. For Applied Optoelectronics (AAOI), the current Enterprise Value is $10,994.5 Mil as of Jul. 02, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Applied Optoelectronics (AAOI) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Optoelectronics stock appears to be overvalued.
The current stock price of $139.00 is trading 585.7% above its estimated GF Value™ of $20.27.
GuruFocus considers Applied Optoelectronics to be Significantly Overvalued.
Key valuation signals for AAOI:
Enterprise Value: $10,994.5 Mil
GF Value™: $20.27 vs. price of $139.00 (585.7% above fair value)
No single metric tells the full story. See the AAOI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Applied Optoelectronics Inc is a provider of fiber-optic networking products, for four networking end-markets; internet data center, CATV, telecom, and FTTH. The Company designs and manufactures a wide range of optical communications products at varying levels of integration, from components, subassemblies, and modules to meet turn-key equipment. Through direct sales personnel, and manufacturing teams in the United States, China, and Taiwan, the company coordinates with customers to determine product design, qualifications, and performance. The Company has manufacturing and research and development facilities located in the U.S., Taiwan, and China.
46GF Score
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