Is Ciena Still Attractive After a 6.1% Weekly Jump and New Global ISP Win?

Simply Wall St.11-27

Wondering if Ciena is actually a bargain right now? You’re not alone, especially with so much talk about tech stocks being overvalued or considered “the next big thing.” In the last week alone, Ciena’...

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You’re not alone, especially with so much talk about tech stocks being overvalued or considered “the next big thing.” In the last week alone, Ciena’...</p>\n\n<a href=\"https://simplywall.st/stocks/us/tech/nyse-cien/ciena/news/is-ciena-still-attractive-after-a-61-weekly-jump-and-new-glo\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Ciena Still Attractive After a 6.1% Weekly Jump and New Global ISP Win?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Ciena Still Attractive After a 6.1% Weekly Jump and New Global ISP Win?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-11-27 19:29 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/tech/nyse-cien/ciena/news/is-ciena-still-attractive-after-a-61-weekly-jump-and-new-glo><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Wondering if Ciena is actually a bargain right now? You’re not alone, especially with so much talk about tech stocks being overvalued or considered “the next big thing.” In the last week alone, Ciena’...</p>\n\n<a href=\"https://simplywall.st/stocks/us/tech/nyse-cien/ciena/news/is-ciena-still-attractive-after-a-61-weekly-jump-and-new-glo\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0154245673.USD","symbol_name":"BNP PARIBAS US MID CAP \"C\" (USD) INC","start_time":0,"source_url":"https://simplywall.st/stocks/us/tech/nyse-cien/ciena/news/is-ciena-still-attractive-after-a-61-weekly-jump-and-new-glo","article_id":"2586228754","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/8111000-choice1-main-header/1585186745276"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/tech/nyse-cien/ciena/news/is-ciena-still-attractive-after-a-61-weekly-jump-and-new-glo","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2586228754","pubTimestamp":1764242989,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Wondering if Ciena is actually a bargain right now? 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You’re not alone, especially with so much talk about tech stocks being overvalued or considered “the next big thing.” In the last week alone, Ciena’s share price jumped 6.1%, with even bigger gains of 140.6% so far this year. This momentum is hard to ignore. These moves follow recent headlines about Ciena’s expanded partnerships in optical networking and a major customer win with a global ISP. Positive sentiment is emerging as investors react to hopes for ongoing demand across digital infrastructure upgrades. Ciena’s current valuation score is 1 out of 6, which signals some caution. There is more than one way to interpret what this means for the stock's value. Let’s break down the traditional valuation methods, and by the end, I’ll share an even smarter approach savvy investors are using today.  Ciena scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. AdvertisementApproach 1: Ciena Discounted Cash Flow (DCF) Analysis The Discounted Cash Flow (DCF) approach estimates a company’s intrinsic value by projecting future cash flows and discounting them back to today’s dollars. This method gives investors a sense of what the business is fundamentally worth based on its future ability to generate cash. Ciena’s current Free Cash Flow stands at $654.6 Million. According to analysts, projections reach about $779.6 Million by 2029. For the next ten years, analyst estimates guide the first half of the outlook. Subsequent years rely on extrapolations. These forecasts, converted into today’s money, are summarized through a two-stage Free Cash Flow to Equity model. Based on this methodology, Ciena’s estimated fair value is $77.34 per share. The intrinsic discount suggests the stock is trading at roughly 159% above what the DCF model considers reasonable. This indicates that, according to cash flow fundamentals, Ciena is significantly overvalued at current levels. Result: OVERVALUED Our Discounted Cash Flow (DCF) analysis suggests Ciena may be overvalued by 159.0%. Discover 925 undervalued stocks or create your own screener to find better value opportunities. CIEN Discounted Cash Flow as at Nov 2025 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Ciena. Approach 2: Ciena Price vs Sales The Price-to-Sales (P/S) ratio is a useful valuation tool, especially for companies like Ciena operating in tech and communications, where profit margins can fluctuate but top-line revenue growth remains a key driver. This ratio compares the company’s share price to its revenues, making it especially relevant for high-growth sectors where bottom-line profitability may be less consistent. It's important to remember that a \"fair\" P/S ratio depends on both the company's growth prospects and its risk profile. Fast-growing companies or those enjoying strong industry tailwinds can justify higher P/S multiples. More mature or riskier firms typically command lower valuations. Currently, Ciena trades at a P/S of 6.22x. This is materially higher than the communications industry average of 1.93x, and also above the average of its direct peers at 8.60x. However, Simply Wall St’s proprietary \"Fair Ratio\" for Ciena, which factors in its growth outlook, profit margins, industry context, and risks, comes in at 4.93x. The benefit of using the Fair Ratio over simple peer or industry averages is that it gives a more nuanced, company-specific benchmark. By considering all relevant fundamentals, it helps avoid overreliance on comparables that might not share Ciena's core characteristics. With Ciena currently valued at 6.22x and the Fair Ratio at 4.93x, shares are trading noticeably above what would be considered fair based on its fundamentals. Result: OVERVALUED NYSE:CIEN PS Ratio as at Nov 2025 PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1432 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your Ciena Narrative Earlier we mentioned that there is an even better way to understand valuation. Let’s introduce you to Narratives. A Narrative is your personal investment story for a company. It captures your viewpoint of Ciena’s future, including your assumptions for fair value, expected revenues, profits, and margins. Instead of relying solely on financial models, Narratives connect what you believe about Ciena’s business drivers directly to a forecast and then to a real-world fair value, allowing you to see if the current price aligns with your story. On Simply Wall St’s Community page, used by millions of investors, Narratives are easy to create and track. Investors can compare their own fair value to Ciena’s current price to help decide on their next steps, all based on each unique perspective. These Narratives update automatically when important news or financial results are released, helping to keep your view current and relevant. For example, one user might believe that Ciena’s rapid AI-fueled order growth justifies a price target near the bullish high of $150, while another could focus on execution risks and see fair value closer to the bearish $79 target. With Narratives, you can invest with clarity and your own conviction, rather than just following the crowd. Do you think there's more to the story for Ciena? Head over to our Community to see what others are saying! NYSE:CIEN Community Fair Values as at Nov 2025  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    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\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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