Ever wondered if Flex stock is actually a bargain or just getting hyped up? You’re not alone. Getting to the bottom of its value starts here.
Flex shares have soared 49.1% year-to-date and an impressive 54.3% over the past year. The past month, however, has seen a pullback of 7.3%.
Recent headlines highlight Flex’s accelerating expansion into the electric vehicle and renewable energy space. This has grabbed the attention of market watchers looking for future-facing growth. Strategic partnerships and facility investments have reinforced the narrative that Flex aims to capture a bigger share of advanced manufacturing trends.
Looking at the numbers, Flex earns a valuation score of 4 out of 6, suggesting some aspects are still undervalued. Up next, we’ll break down the most popular ways to value a company like Flex, and stay tuned as we uncover an even more insightful approach before we’re done.
The Discounted Cash Flow (DCF) model estimates a company’s value by projecting its future free cash flows and discounting them back to today’s dollars. This approach looks beyond current earnings and instead focuses on the actual cash Flex is expected to generate over time.
Flex currently produces free cash flow of $1.2 Billion, and analysts project steady growth for the business. Over the next decade, annual free cash flow is forecasted to climb from $1.3 Billion in 2028 to nearly $1.9 Billion by 2035. The projections after 2028 are extrapolated based on trends and expert estimates.
Using the 2 Stage Free Cash Flow to Equity model, the DCF suggests an intrinsic value for Flex stock of $65.22 per share. This figure is 11.7% above the current market price, implying that Flex is modestly undervalued based on expected future cash flows.
The Price-to-Earnings (PE) ratio is widely used to value profitable companies like Flex, as it measures how much investors are willing to pay for each dollar of earnings. For companies with steady profits, the PE ratio provides a clear signal of market expectations and how those compare against peers.
Interpreting what counts as a “normal” or “fair” PE ratio depends a lot on growth prospects and risk. Fast-growing businesses usually command higher PE ratios since investors are betting on future earnings potential. Companies in mature or uncertain markets often trade at lower multiples.
Currently, Flex trades at a PE ratio of 24.3x. For context, the broader Electronic industry averages 23.0x. Direct peers are priced higher at about 36.5x. This means Flex sits just above the industry norm and well below the peer group’s appetite, placing it in a middle ground for valuation.
Simply Wall St also calculates a proprietary “Fair Ratio” for Flex at 35.0x. Unlike basic industry or peer comparisons, the Fair Ratio factors in Flex’s specific growth outlook, risk profile, profit margins, industry, and market cap, offering a more tailored benchmark for fair value.
Comparing Flex’s actual PE of 24.3x with its Fair Ratio of 35.0x, the stock appears solidly undervalued on this preferred metric.
Earlier we mentioned that there’s an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is your personal story about a company, where you blend your perspective, based on what you know about Flex’s business trends, markets, and management, with your assumptions for its fair value and outlook for future revenue, earnings, and profit margins.
This approach goes beyond static ratios or analyst targets by connecting the company’s big picture story with your own financial forecast, resulting in a fair value that truly reflects your view. Narratives make this process easy and accessible through Simply Wall St’s Community page, where millions of investors share and discover collective insights.
With Narratives, you can decide if Flex is a buy or a sell by comparing your calculated Fair Value with the latest market Price. Since Narratives update automatically as new news or results arrive, your thesis is always current and actionable.
For example, recent Narratives on Flex span a range, from bullish users expecting a fair value of $75 per share, driven by accelerating AI and cloud demand, to more cautious investors setting their value as low as $50 due to margin and client concentration risks. This shows how diverse viewpoints produce different investing conclusions, all powered by the Narrative tool.
NasdaqGS:FLEX Community Fair Values as at Nov 2025
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.
