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Celestica (TSX:CLS) is back on investors’ radar after recent trading put fresh focus on its performance this month and over the past 3 months, prompting a closer look at its current valuation.
See our latest analysis for Celestica.
At a share price of CA$436.06, Celestica has seen momentum build over the past few months, with a 30-day share price return of 7.04% and a 90-day share price return of 17.39% sitting alongside a very large 1-year total shareholder return.
If this kind of move has you looking beyond a single name, it could be a good moment to scan the wider tech space and see which other high growth stories are appearing in high growth tech and AI stocks.
With Celestica trading at CA$436.06 and carrying an analyst price target closer to CA$546, combined with very strong recent shareholder returns, investors may wonder whether there is still a buying opportunity available or if the market has already priced in future growth.
Compared to Celestica’s last close at CA$436.06, the most followed narrative points to a fair value of about CA$546, implying meaningful upside in its view.
Shifting mix toward high-margin end-markets (A&D, industrial, healthtech) and value-added services (full-rack integration, after-market, design, and services) is expected to drive net margin expansion and enhance earnings quality, particularly from 2026 onward.
Want to understand why this valuation leans higher? It leans on fast revenue growth, thicker margins, and a punchy future earnings multiple. Curious which precise assumptions do the heavy lifting? Read the full story behind the numbers.
Result: Fair Value of $546.16 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, this upbeat valuation view still hinges on concentrated hyperscaler revenue and smooth execution on new high-speed networking programs. Any stumble could quickly challenge the story.
Find out about the key risks to this Celestica narrative.
The popular narrative suggests Celestica is about 20.2% undervalued, yet our SWS DCF model paints a very different picture. On that view, fair value sits at roughly CA$150.21 per share, which would place today’s CA$436.06 price well above that level. Which story do you think fits your expectations?
Look into how the SWS DCF model arrives at its fair value.
CLS Discounted Cash Flow as at Jan 2026
If you see the story differently or prefer to work through the numbers yourself, you can build a custom view in just a few minutes: Do it your way.
A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Celestica.
If Celestica has caught your eye, do not stop there. Widen your watchlist with a few targeted stock ideas that match how you like to invest.
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 CLS.TO.
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