Logitech Valuation Analysis and Transformation Prospect Assessment Report

Based on multi-dimensional data analysis, we now present the complete Logitech Valuation Impact and Transformation Prospect Assessment Report:

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Based on the DCF valuation model, Logitech’s current stock price carries

[0]:

Valuation Scenario	Intrinsic Value	Premium/Discount vs Current Stock Price
Conservative Scenario	$51.15	-48.7%
Base Scenario	$62.60	-37.2%
Optimistic Scenario	$98.83	-0.9%
Weighted Average Valuation	$70.86	-28.9%

The current stock price ($99.70) is only roughly in line with the

valuation, which assumes:

• Revenue growth of 1.7%
• EBITDA margin of 18.0%
• Terminal growth rate of 3.0%
• Weighted Average Cost of Capital (WACC) dropping to 8.4%

This valuation indicates that the market’s growth expectations for Logitech have become quite aggressive, and any underperformance could trigger a valuation pullback.

Logitech’s valuation multiples are at a

compared to the industry[0]:

Metric	Logitech	Industry Average	Premium/Discount
P/E (TTM)	23.00x	~20.5x	+12.2%
P/B	6.53x	~4.2x	+55.5%
P/S	3.08x	~2.5x	+23.2%
EV/OCF	16.16x	~14.5x	+11.4%

High valuation multiples rely on sustained profit growth support; once the weak PC market leads to revenue decline, valuation multiples face contraction pressure.

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Logitech’s core revenue remains highly correlated with traditional PC peripherals[0]:

• Keyboard and mouse business
  : Accounts for 38.5% of revenue (Q2 FY2026), with a clear year-over-year downward trend
• Traditional PC demand
  : Global PC shipments continue to face pressure, with enterprise replacement cycles extended
• Market saturation
  : PC peripheral penetration in mature markets is already at a high level

Analysis of historical financial data[0]:

• Compound Annual Growth Rate (CAGR)
  : -3.5% (past 5 years)
• Net profit margin
  : 13.2%
• Gross margin
  : 43.8% (but facing tariff pressure)

The core logic behind target price cuts by institutions like UBS is that the continued decline in PC market demand will weigh on Logitech’s revenue growth, thereby compressing valuation multiples.

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Logitech is actively advancing a

[1]:

Business Segment	Q2 FY2026 Revenue	Proportion	YoY Growth
Gaming Business	$323.31M	27.3%	+8%
Video Collaboration	$167.68M	14.1%	+5%
Tablet Accessories	$85.06M	7.2%	-1%

:

• The
  Gaming Business
  has become the largest revenue source, benefiting from the sustained growth of the esports industry
• The
  Video Collaboration
  business benefits from the normalization of hybrid work
• The company is
  continuously gaining market share
  in niche segments such as tablet accessories and console gaming headsets

Q2 FY2026 regional revenue growth[2]:

• Asia Pacific
  : +19% (constant currency), leading in growth
• EMEA
  : +3% (constant currency)
• Americas
  : Steady growth

The strong performance in the Asia Pacific market has partially offset weakness in other regions.

Logitech has set clear long-term growth targets[3]:

• Revenue growth target
  : 7%-10%
• Non-GAAP gross margin
  : Above 40%
• Non-GAAP operating margin
  : 15%-18%

If these targets can be achieved, the company is expected to reshape its growth trajectory and support its current valuation.

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Risk Type	Impact Level	Description
Tariff Uncertainty	High	Resulted in the withdrawal of the FY2026 outlook, expected to impact gross margin by 200-500 bps
Prolonged PC Market Downturn	Medium-High	Traditional peripheral business under pressure
Macroeconomic Downturn	Medium	Corporate IT expenditure contraction

• The current stock price ($99.70) has a
  28.9% premium
  over the weighted valuation ($70.86)
• Market expectations are quite optimistic, and any underperformance could trigger a stock price adjustment
• Technical analysis shows the stock price is in a
  sideways consolidation
  pattern, with the MACD indicator showing a bearish signal[0]

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Metric	Data
Consensus Rating	Hold (HOLD)
Median Target Price	$121.50
Target Price Range	$107.00 - $135.00
Rating Distribution	Buy 36.8% / Hold 42.1% / Sell 21.1%

: Current valuation is in the

:

• Excellent ROE performance (29.13%) and healthy cash flow
• Growth potential of the gaming and video collaboration businesses
• Stable gross margin and operating margin

:

• Sustained impact of weak PC market demand on traditional business
• Valuation has already fully reflected transformation expectations
• Tariff uncertainty increases performance volatility risk

Dimension	Assessment
Valuation Attractiveness	⭐⭐⭐ (Moderately Low)
Risk-Reward Ratio	⭐⭐⭐ (Neutral)
Long-Term Allocation Value	⭐⭐⭐⭐ (Good)

:

• Conservative Investors
  : Wait for the stock price to fall below $80 before considering allocation
• Aggressive Investors
  : May deploy a small position at the current price, and pay attention to the Q3 FY2026 earnings report (January 27, 2026)[0]
• Risk Warning
  : Closely monitor signs of PC market stabilization and the growth realization of the company’s transformation businesses

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• Support Level
  : $98.51
• Resistance Level
  : $106.65
• Current Trend
  : Sideways consolidation, no clear direction
• Technical Signals
  : MACD (Bearish) / KDJ (Bullish) / RSI (Neutral)

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Logitech is facing a complex situation intertwined with the weak PC market and corporate transformation. From a valuation perspective, the current stock price ($99.70) has a

compared to the weighted intrinsic value of $70.86 based on the DCF model, which means the market has given a high expected premium to the company’s transformation prospects.

:

1. Valuation Risk
   : The continued weakness of the PC market will compress the company’s revenue growth expectations, potentially leading to a contraction in valuation multiples
2. Transformation Effectiveness
   : Growth in the gaming and video collaboration businesses is gradually offsetting the decline in the traditional PC peripheral business
3. Allocation Timing
   : Current valuation has already fully reflected transformation expectations; it is recommended to wait for a better allocation window or performance verification

If the company can continue to expand its market share in high-growth tracks such as gaming and video collaboration, and achieve the long-term revenue growth target of 7%-10%, the current valuation is expected to be supported. Otherwise, the stock price may face the risk of a “double kill” of valuation and performance.

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[0] Jinling AI Financial Database - Logitech company profile, financial analysis, DCF valuation, and technical analysis data

[1] Seeking Alpha - “Logitech: Innovating Through Volatility, Growing Across Gaming And Work” (December 2025)

[2] Logitech Q2 FY2026 Shareholder Letter - Logitech International (NASDAQ: LOGI) (October 2025)

[3] Matrix BCG - “What is Logitech International’s Growth Strategy and Future Outlook” (2025)

[4] Logitech Official Press Release - “Logitech Announces Q1/Q2 Fiscal Year 2026 Results” (2025)