Built from weaker models, sales multiples or analyst targets, so treat it as a rough guide.
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Valued as a cyclical company: P/E comparison, EV/EBITDA comparison, and Discounted cash flow.
ACCE opinionViavi Solutions Inc. Common Stock (VIAV)
Fair value (2 models)
Not available
ACCE price target
$33.00
Rating
Not rated
Horizon
12 months
ACCE price target published on 23 Oct 2026, 01:52 CEST; previously $44.00 since 27 Sept 2026, 00:00 CEST.
Price used: $30.45 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, EV/EBITDA comparison, and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
60
out of 100
Analysts
88% buy
8 covering
P/E
0.0x
forward 22.1x
1-year return
+126.9%
Dividend yield
0.00%
Viavi Solutions Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Viavi Solutions makes network test, measurement and assurance gear, including optical and RF test platforms, network performance software and the optical security and anti-counterfeiting pigments it sells into currency and document markets. Its moat is the installed base of test equipment and software that network operators and equipment vendors rely on to validate fiber and 5G builds, which tends to keep customers sticky once qualified. Revenue growth of 52.5% is the headline, and the near-term driver is the AI data center buildout, where higher-speed optical transceiver and fiber testing demand is pulling the business forward. The stock trades at 21.2x forward earnings with a 60.9% gross margin and a 14.3% operating margin, a setup that looks reasonable if the growth rate holds, though trailing earnings are not yet meaningful and return on equity is still slightly negative at -2.7%. Worth a deeper look to test how durable the 52.5% growth is versus a cyclical rebound from a weak base, and whether margins can keep expanding.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Valuation disconnect and earnings quality
P/E of 0.0 masks negative net margin of -2.0% despite 326.5% earnings growth. EV/EBITDA of 39.2x and P/S of 7.4x are stretched. Fair value $44.00 vs current $45.46 leaves minimal margin of safety.
moderate
Insider selling pressure
Last 10 disclosures show $3.77M in sales against $0.00M in buys. Insider ownership at +1.2% suggests limited conviction at current levels.
moderate
Profitability disconnect
ROE of -2.7% and negative net margin conflict with strong gross margin of 60.9% and operating margin of 14.3%. Suggests high below-the-line costs or tax burden masking operational strength.
AI research notes
AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue surged 52.5% year over year, driven by strong demand from hyperscaler customers building out AI infrastructure.
Analyst consensus is overwhelmingly bullish, with 88% rating the stock Buy or Strong Buy and a mean price target implying 35.1% upside.
The company generated 159M in free cash flow over the last twelve months despite negative net margins, showing underlying business strength.
Why it could disappoint
Net margin remains deeply negative at -2.0% and ROE is -2.7%, meaning the business is not yet profitable on a GAAP basis.
The stock trades at 23.3x forward P/E with a free cash flow yield of only 1.4%, leaving little margin for error on growth assumptions.
Share count increased 1.7% last fiscal year while five-year revenue growth averaged only 11.1%, suggesting dilution outpaces organic expansion.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 4, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where VIAV's valuation models land
Price
$30.45
Model fair valueConfidence: low
about $7.68
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
P/E comparison
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Quality
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