--- title: "Assessing Illumina (ILMN) Valuation After Strong Recent Share Price Gains" type: "News" locale: "en" url: "https://longbridge.com/en/news/286344078.md" description: "Illumina (ILMN) has seen significant share price gains, closing at $145.00, with a 14.21% return over 30 days and 26.70% over 90 days. Despite a strong annual revenue of $4.39 billion and net income of $853 million, analysts consider the stock 6.5% overvalued with a fair value of $136.11. The current P/E ratio of 25.7x is lower than the industry average but higher than a conservative benchmark. Investors face risks from competition and regulatory uncertainties, making it crucial to weigh potential rewards against risks." datetime: "2026-05-14T02:09:48.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286344078.md) - [en](https://longbridge.com/en/news/286344078.md) - [zh-HK](https://longbridge.com/zh-HK/news/286344078.md) --- # Assessing Illumina (ILMN) Valuation After Strong Recent Share Price Gains ## Recent performance snapshot and context for Illumina (ILMN) Illumina (ILMN) has attracted fresh attention after recent share price moves, with the stock closing at US$145.00 and showing double digit gains over the past month and past 3 months. That shift comes against a backdrop of annual revenue of US$4.39b and net income of US$853.0m from its sequencing and array based genetic analysis business, which serves research, clinical, and commercial customers worldwide. See our latest analysis for Illumina. Recent momentum has been strong, with a 14.21% 30 day share price return and 26.70% 90 day share price return, while the 1 year total shareholder return of 85.40% contrasts with weaker 3 and 5 year total shareholder returns. If Illumina’s recent rebound has you looking at genomics and healthcare AI more broadly, it could be worth scanning other opportunities through our curated list of 33 healthcare AI stocks. With Illumina’s share price rebounding and trading above the average analyst target, yet showing a 15% discount to one intrinsic estimate, the key question is simple: is there still a buying opportunity here or is future growth already priced in? ## Most Popular Narrative: 6.5% Overvalued Illumina’s most followed narrative places fair value at $136.11 per share, slightly below the last close at $145.00, and builds a case around earnings quality, growth, and competitive positioning. > _Analysts are assuming Illumina's revenue will grow by 5.1% annually over the next 3 years. Analysts assume that profit margins will increase from 19.6% today to 20.3% in 3 years time._ _Read the complete narrative._ Want to see how steady top line growth, firmer margins, and a specific future earnings multiple combine into that fair value? The narrative leans on measured growth, improving profitability, and a required return anchored at a single discount rate, all tied together in a detailed earnings roadmap. **Result: Fair Value of $136.11 (OVERVALUED)** Have a read of the narrative in full and understand what's behind the forecasts. However, there is still real execution risk. Competition in sequencing and ongoing regulatory uncertainty in China are both capable of pressuring Illumina’s growth and margins. Find out about the key risks to this Illumina narrative. ## Another Angle: What P/E Says About Illumina Today While one narrative sees Illumina as 6.5% overvalued against a $136.11 fair value, the current P/E of 25.7x presents a more mixed picture. It is lower than the global Life Sciences industry at 35.7x and slightly below peers at 27.1x, yet still higher than a fair ratio of 20.3x that some investors may see as a more conservative benchmark. For investors, that difference can look like either valuation risk or potential upside, depending on which reference point feels more reasonable. So which signal matters more to you: the discount to industry and peers, or the premium to the fair ratio, and what does that indicate about your comfort with Illumina’s current price? See what the numbers say about this price — find out in our valuation breakdown. NasdaqGS:ILMN P/E Ratio as at May 2026 ## Next Steps If this mix of optimism and caution feels familiar, that is the point. You are seeing a stock with both risks and rewards on the table. To weigh those trade offs for yourself, it helps to see the full picture in one place through 3 key rewards and 1 important warning sign ## Looking for more investment ideas? If you stop at just one stock, you could miss opportunities that fit your goals even better, so consider putting a few more ideas on your radar today. - Target potential bargains early by scanning screener containing 23 high quality undiscovered gems that combine quality fundamentals with less crowded investor attention. - Prioritise resilience by checking 68 resilient stocks with low risk scores that score well on risk, so your portfolio is not built on fragile stories. - Anchor your research in financial strength by reviewing the solid balance sheet and fundamentals stocks screener (46 results) and see which companies may handle tough conditions more comfortably. _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._ ### **New:** AI Stock Screener & Alerts Our new AI Stock Screener scans the market every day to uncover opportunities. • Dividend Powerhouses (3%+ Yield) • Undervalued Small Caps with Insider Buying • High growth Tech and AI Companies Or build your own from over 50 metrics. 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