Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide.
Daktronics (DAKT) has caught investor attention after a period of strong reported fundamentals, with annual revenue of US$770.283 million and net income of US$7.37 million, prompting closer scrutiny of its recent share performance.
See our latest analysis for Daktronics.
At a share price of US$21.69, Daktronics has seen a 15.25% 1 month share price return and a 30.35% 1 year total shareholder return. The very large 3 year total shareholder return suggests earlier momentum that now appears to be moderating.
If Daktronics has you looking at display and signage demand, it could be a good moment to widen your tech watchlist with high growth tech and AI stocks.
With Daktronics trading at US$21.69 against a US$30.00 analyst target and very large multi year returns already on the board, you have to ask: is there still a buying opportunity here, or is the market already pricing in future growth?
With Daktronics last closing at US$21.69 against a narrative fair value of US$30.00, the current price sits well below what this framework suggests. This sets up a valuation story built on aggressive earnings and margin assumptions.
Investments in digital transformation, manufacturing automation, and operational efficiency are reducing costs, improving inventory management, and supporting gross margin expansion, which should drive higher medium-to-long-term earnings.
Curious what takes Daktronics from modest recent profits to much higher earnings in a few years? The narrative leans heavily on sharp margin expansion and strong top line growth assumptions. Want to see the full earnings path and the future P/E it uses to reach US$30 per share? Read on to see how all those moving parts are stitched together into one valuation story.
Result: Fair Value of $30 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, you still have to weigh exposure to cyclical end markets and tariff uncertainty, either of which could pressure margins and challenge this earnings-driven story.
Find out about the key risks to this Daktronics narrative.
That US$30 fair value narrative leans heavily on future earnings and margins, but today the shares trade on a P/E of 143.5x. That is far above the US Electronic industry at 27.8x, the peer average at 37.7x, and even a fair ratio of 66.4x, raising the question of how much optimism is already in the price.
See what the numbers say about this price — find out in our valuation breakdown.
NasdaqGS:DAKT P/E Ratio as at Jan 2026
If you look at the numbers and come to a different conclusion, or simply prefer to test your own assumptions, you can build a Daktronics view yourself in just a few minutes with Do it your way.
A great starting point for your Daktronics research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
If Daktronics has sharpened your focus, do not stop here. Use the same tools to scan wider markets and spot opportunities that match your own approach.
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.
Companies discussed in this article include DAKT.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com