Applied Optoelectronics, Inc. Ratios | P/E, ROE & Valuation

On this page, AAOI's current P/E is -155.4, compared with a multi-year average around 11.3. A lower P/E versus its own history is often interpreted as relatively cheaper valuation (all else equal). In practice, the "why" matters: check whether the lower multiple is supported by profitability and earnings quality (for example, ROE/ROIC and income quality in the table), or whether it reflects weaker fundamentals.

Market cap is the market value of a company's equity and is commonly calculated as share price multiplied by shares outstanding. The latest market cap shown in the table is $8.22B. Pair market cap with valuation multiples (P/E, P/B, P/S) so you can evaluate whether size also corresponds with "quality" and profitability. For a wider view across stocks, you can also use the stock screener.

There isn't one universal "good" P/E - P/E should be judged against the business model and expected growth for its sector. A practical approach is: (1) compare the P/E on this page to Applied Optoelectronics, Inc.'s own historical range (shown across the table's rows), and (2) benchmark against peer companies using the Screener's P/E filters and the Peers Comparison/Compare tools. If profitability (ROE/ROIC) and cash-flow strength are improving, a higher P/E can be more defensible; if returns are slipping, even a lower P/E may be a value trap.

The fastest way to compare Applied Optoelectronics, Inc. with competitors is to use the built-in "Peers Comparison" section on this page and the Compare tool. Focus on a small set of ratios that work together: P/E for valuation, ROE/ROIC for profitability and capital efficiency, current ratio and interest coverage for liquidity and solvency, and debt-to-equity for leverage risk. When you see Applied Optoelectronics, Inc. outperform peers on profitability while keeping valuation and leverage reasonable, it often signals stronger fundamentals.

To assess whether Applied Optoelectronics, Inc. is financially strong, review both profitability and balance-sheet risk together. Current ratio is about 3.83, which is above 1.0 and can indicate more comfortable short-term liquidity. Interest coverage is about -19.72, implying less buffer for servicing interest costs. Debt-to-equity is about 0.16, suggesting leverage is more moderate relative to a high-debt profile. Then confirm the same story is supported by ROE/ROIC (quality of earnings) and by cash-flow backed metrics in the table.

Ratios are a way to see what the business is likely to sustain. Look for upward trends in profitability metrics (ROE and ROIC), improving earnings/cash-flow backed measures, and stable or strengthening liquidity. If Applied Optoelectronics, Inc. is sustaining strong returns (for example ROE at -6.14% and ROIC at -3.71%) while debt levels and interest coverage remain manageable, growth expectations may be more credible. If valuation multiples expand while returns weaken, the market may be pricing optimistic growth ahead of results.