NASDAQ · AAOI

Applied Optoelectronics, Inc.

Technology · Communication Equipment

$96.74▲ 1.52% ($1.45)at close

Pre-market$101.00▲ 4.40%7:32 AM ET

52-week

$18.50$233.67

Market cap

$7.76B

P/E

-124.22

Volume

7.03M

Shares outstanding

80.24M

What the market price implies · Reverse DCF

Historical revenue grew by 21.15%/yr over the past 4 years.

Selected forecast · Base scenario

19.61%/yr · actual 10-year annualized revenue growth

Year 1 growth: 40%

Market-implied · Base operating assumptions + edited margins

Unavailable · flat 10-year annualized revenue growth

Reverse DCF solves revenue growth itself using Base operating assumptions and your edited margins. Changing forecast growth alone does not change the implied rate. This is a model-implied requirement, not an analyst forecast.

No supported revenue growth rate matches this price with these operating assumptions.

Valuation

Recommended · Revenue & margin DCF

Price used

$96.74

Estimated value / share

Unavailable

Base scenario

USD · TTM ending 2026-06-30

Every projected year produces negative free cash flow, so the model returns a negative enterprise value. A discounted-cash-flow valuation cannot be defended on those inputs, so it is not shown.

Year 1 growth 40% · Ending margin 0% · Discount rate 18.36%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future revenue, operating margins, and the investment needed to support them.

Price timestamp: Sep 16, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-06-30
Data refreshed: Sep 17, 2026, 11:32 AM UTC · provider

Why this method?

There is not a stable run of positive FCFF to anchor a direct cash-flow CAGR, so the model should start from revenue and margin assumptions instead.

Is FCFF positive and has it been for 3+ consecutive years? Latest FCFF is not positive.

Price vs Fundamentals

Why The Stock Is Moving

Fundamentals are supporting the moveModerate confidence

1Y Price: 234.39%Revenue (TTM): 61.85%FCF (TTM): -69.4%P/E: 0th pct

What changed

The stock rose 234.39% over the last year. Revenue grew 61.85% over the trailing twelve months. Operating margin moved from -13.02% to -11.31%. Free cash flow declined 69.4% over the trailing twelve months.

What the market seems to be pricing

The stock move broadly lines up with stronger business momentum, and the shares are still only around the 0th percentile of their historical P/E range.

What would invalidate this read

Operating margin is at -11.31%. Revenue grew 61.85% — this thesis depends on that trajectory holding. Despite the price move, free cash flow fell 69.4%, which is worth watching as a leading indicator of future pressure. If revenue growth, margins, or free cash flow roll over while the stock keeps climbing, more of the move would be coming from multiple expansion than business progress.

Performance

Return analysis

Company profile

Applied Optoelectronics, Inc. (AAOI) is a global technology firm specializing in the creation, production, and distribution of fiber-optic networking solutions.

CEOChih-Hsiang Lin

SectorTechnology

IndustryCommunication Equipment

Employees4,691

IPO dateSep 26, 2013

https://www.ao-inc.com

Market multiples

Forward P/E—

EV/EBITDA-132.12

Enterprise value$2.05B

Stock splits

No stock splits recorded for this ticker.

Profitability & growth

Revenue growth86.42%

Gross margin (FY2025)30.04%▲5.3ppvs FY2024

Operating margin (FY2025)-11.98%▲16.5ppvs FY2024

ROE-5.45%▲2.5ppvs FY2025

Analyst consensus

RatingBuy

Target price$184.00▲90.20%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Nov 5, 2026

Q4 FY26 · EPS est $0.14 · Revenue est $268.11M

View