Is Mirion Technologies (MIR) Fairly Priced After Strong Multi Year Share Price Gains

• If you are wondering whether Mirion Technologies at around US$19.76 is offering value or stretching expectations, the recent share performance gives you some useful clues before looking at the valuation numbers.
• The stock has returned 3.6% over the last 7 days and 5.7% over the last 30 days, while the year to date return of a 17.1% decline contrasts with a 41.8% return over the past year and a 134.4% return over 3 years.
• Over the past year, investors have watched Mirion closely as it has continued to operate in radiation detection and measurement markets, where demand is influenced by medical, industrial and nuclear energy activity. Broader attention on nuclear related infrastructure and safety solutions has helped frame how the market views Mirion's role in that space.
• Even with this backdrop, Mirion currently records a valuation score of 1 out of 6, which points to a mixed picture when standard valuation checks are applied. The next sections will walk through these methods in detail and then finish with a broader way of thinking about what valuation really means for you.

Mirion Technologies scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Mirion Technologies Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model estimates what a business could be worth today by projecting its future cash flows and then discounting those back into present value using a required return. For Mirion Technologies, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections rather than accounting earnings.

Mirion reports last twelve month free cash flow of about $99.6 million. Analyst estimates and subsequent extrapolations point to projected free cash flow of $239 million in 2028, with a series of projections running out to 2035, all converted into present values. All of these cash flows are assessed in US$.

Pulling this together, the DCF model arrives at an estimated intrinsic value of $19.16 per share, compared with the recent share price of around $19.76. This implies the stock trades at roughly a 3.1% premium to the model's estimate, which sits comfortably inside a normal margin of error for this kind of analysis.

Result: ABOUT RIGHT

Mirion Technologies is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Mirion Technologies.

Approach 2: Mirion Technologies Price vs Sales

For a business that is generating revenue and operating in established commercial markets, the P/S ratio is a useful way to gauge how much you are paying for each dollar of sales, especially when earnings can be affected by non cash items or one off factors.

What counts as a normal P/S ratio depends on what investors expect for future growth and how risky those cash flows appear. Higher expected growth or lower perceived risk can support a higher multiple, while lower growth or higher risk tends to support a lower one.

Mirion currently trades on a P/S ratio of 5.22x. That sits above the Electronic industry average of about 2.53x and the peer group average of 3.59x. Simply Wall St’s Fair Ratio model, which adjusts the preferred multiple for factors like earnings growth, profit margins, company size, risk profile and industry, suggests a P/S of 3.54x could be more in line with those fundamentals.

Because the current 5.22x P/S sits meaningfully above the 3.54x Fair Ratio, the shares look expensive on this measure.

Result: OVERVALUED

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Upgrade Your Decision Making: Choose your Mirion Technologies Narrative

Earlier it was mentioned that there is an even better way to understand valuation. Narratives on Simply Wall St’s Community page let you turn your view of Mirion Technologies into a clear story that links its role in areas like nuclear power and radiation monitoring to specific forecasts for revenue, earnings, margins and a fair value estimate. The narrative then compares that fair value with today’s price to help you decide whether the current market level looks attractive or stretched. It updates automatically when new news or earnings are released and can differ widely between investors. For example, one investor using assumptions similar to the US$28.10 fair value may see Mirion as offering more upside, while another, more cautious investor with a much lower fair value may focus on risks such as nuclear exposure and acquisition execution.

Do you think there's more to the story for Mirion Technologies? Head over to our Community to see what others are saying!

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.

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