Market Pulse50Neutral

Celestica Inc.Opportunity Rank #220(CLS) Intrinsic Value & DCF Analysis (2026)

Sector: Technology

Current Price

$286.98

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$286.98
Price
$101.97
Intrinsic Value
Overvalued by 64%MOS: $81.58

Fundamental Score

49/100
Bearish

Weighted across 6 signals

Narrative Score

58/100
Improving

+4 vs previous

The intrinsic value of Celestica Inc. (CLS) is estimated at $101.97 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $286.98, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 3.74% long-term growth rate and a 10.14% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of Celestica Inc. (CLS) is estimated at $101.97 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $286.98, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 3.74% long-term growth rate and a 10.14% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$101.97
-64.47% downside
20% margin of safety: $81.58
Years: 10Growth Rate: 3.74%
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Capital Efficiency

Average Quarterly ROIC
9.27%
Cost of Capital (estimated)10%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

49/100
BearishWeighted across 6 signals
DCF Discount
64.5% premium to price
0
FCF Yield
2.6% trailing FCF yield
15
ROIC vs WACC
ROIC 9.3% vs WACC 10.0% (0.9x)
46
Net Debt / FCF
0.2x net debt to FCF
96
Buybacks
Share count flat
50
FCF CAGR (5Y)
24.2% 5Y FCF CAGR
100
Strengths: Net Debt / FCF, FCF CAGR (5Y). Concerns: DCF Discount, FCF Yield.

Narrative Details

58/100
Improving
+4 vs previous · +1 new driversVs 6-Month Baseline:Low (8th pct)Weighted across 5 recent drivers
Trend: StableConfidence: 97%Updated: 1h ago
Sources: 100 (97 News · 3 Analyst)
Drivers(last 30 days)
68 news sentiment+1.2
23 regulatory scrutiny-0.7
4 upgrade headlines+0.3
2 earnings beat+0.0
3 analyst reiterations0.0

Investment Coach

Updated 11h ago
AVOIDConfidence: 61%
Thesis
Celestica Inc. is significantly overvalued with its current price approximately 65.8% above the estimated fair value of $98.14, indicating limited upside potential. Despite a stable narrative trend, fundamental metrics suggest bearish conditions with a negative ROIC versus WACC spread.
Key Risk
The primary risk is that the company's return on invested capital remains below its weighted average cost of capital, which could continue to pressure valuation and performance.
Signals To Watch
  • Price moves to at least a mid-teens discount to fair value.
  • Sustained improvement in ROIC versus WACC spread.
  • Meaningful shifts in the narrative trend score direction.
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Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 3.74%5 Year CAGR: 25.38%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$864$876$645$451$320$279$292$426$115$230$237$259$303$202$418$259$212$371$297$415$228

How Intrinziq Estimates Fair Value

Intrinziq estimates Celestica Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Celestica Inc.Technology

Celestica Inc. provides hardware platform and supply chain solutions in North America, Europe, and Asia. It operates through two segments, Advanced Technology Solutions, and Connectivity & Cloud Solutions. The company offers a range of product manufacturing and related supply chain services, including design and development, engineering, supply chain management, new product introduction, component sourcing, electronics manufacturing and assembly, testing, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics, asset management, product licensing, and after-market repair and return services. It also provides enterprise-level data communications and information processing infrastructure products, such as routers, switches, data center interconnects, edge solutions, servers, and storage-related products; capacitors, microprocessors, resistors, and memory modules; and power inverters, energy storage products, smart meters, and other electronic componentry products. The company serves aerospace and defense, industrial, energy, healthtech, capital equipment, original equipment manufacturers, cloud-based, and other service providers, including hyperscalers, and other companies in a range of industries. Celestica Inc. was incorporated in 1994 and is headquartered in Toronto, Canada.

Celestica Inc. (CLS) Intrinsic Value & DCF (2026) | Intrinziq