Credo Technology Group Holding Ltd (CRDO) Stock Analysis — Fair Value, Risk & Moat Rating
NMS · Technology · Semiconductors
Is Credo Technology Group Holding Ltd a safe investment right now?
As of Aug 13, 2026, our estimated fair value (intrinsic value) for Credo Technology Group Holding Ltd (CRDO) stock is $158.40, versus a market price of $259.90 — Overvalued. Predicted EPS $3.96 x 40.0 Fair PE.
Credo Technology Group Holding Ltd's Altman Z-Score of 127.74 places it in the safe zone. Our fair value estimate is $158.40 (Overvalued). Moat rating: 2.9/5 stars.
Credo Technology Group Holding Ltd is part of the Optical Modules & Interconnect — the Data-Center Nervous System group in our AI coverage — compare its fair value against every other AI, cloud, and quantum stock through a value investing lens.
Could Credo Technology Group Holding Ltd go bankrupt? Altman Z-Score analysis
Z-Score of 127.74 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives CRDO's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.7858 | 1.2 | 0.94 |
| B · Retained Earnings / Total Assets | RE / TA | 0.1695 | 1.4 | 0.24 |
| C · EBIT / Total Assets | EBIT / TA | 0.1938 | 3.3 | 0.64 |
| D · Market Cap / Total Liabilities | MCap / TL | 208.8972 | 0.6 | 125.34 |
| E · Revenue / Total Assets | Rev / TA | 0.5816 | 1.0 | 0.58 |
How has CRDO's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2023 | 586.47 | Safe |
| 2024 | 471.81 | Safe |
| 2025 | 229.21 | Safe |
| 2026 | 127.74 | Safe |
Source: Calculated from CRDO's latest 10-K filing on SEC EDGAR.
Credo Technology Group Holding Ltd Fair Value & Intrinsic Value — What Is It Actually Worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $3.96 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $2.51 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $6.13 | 19 analysts consensus |
| Trailing P/E | 104.0x | Current market pricing |
| Fair P/E (β discount) | 40.0x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Accelerating | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $279.29 (19 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Credo Technology Group Holding Ltd have a durable competitive advantage?
Moat rating: 2.9/5.
What makes up CRDO's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 2/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 4/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is CRDO's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2023 | -5.4% | — |
| 2024 | -6.9% | Declining |
| 2025 | 5.5% | Rising |
| 2026 | 21.6% | Rising |
Source: ROIC calculated from SEC EDGAR filings.
Is Credo Technology Group Holding Ltd's dividend safe?
Credo Technology Group Holding Ltd's key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $1.3B | $0.4B | $0.2B | Rising |
| Net Income | $0.5B | $0.1B | −$0.0B | Rising |
| Free Cash Flow | $0.4B | $0.0B | −$0.0B | Rising |
| Gross Margin | 68.0% | 64.8% | 57.6% | Rising |
Recent events that affect our CRDO analysis
CRDO earnings report scheduled
Upcoming report. Consensus EPS estimate: $1.16. Revenue estimate: $470.4M. Our current Fair Value: $158.40 — a significant beat or miss could shift this estimate.
CRDO analyst consensus: 95% bullish (18 of 19 analysts)
4 Strong Buy, 14 Buy, 1 Hold, 0 Sell, 0 Strong Sell. Consensus target: $279.29 (7.5% upside). Compare with our independent Fair Value: $158.40.
CRDO filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
CRDO beat EPS estimates by 12.2%
Reported EPS: $1.16 vs estimate $1.03. Earnings strength supports our Fair Value of $158.40 (39.1% below current price).
CRDO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRDO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRDO filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
CRDO beat EPS estimates by 13.7%
Reported EPS: $1.07 vs estimate $0.94. Earnings strength supports our Fair Value of $158.40 (39.1% below current price).
CRDO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRDO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRDO filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
CRDO beat EPS estimates by 35.3%
Reported EPS: $0.67 vs estimate $0.50. Earnings strength supports our Fair Value of $158.40 (39.1% below current price).
CRDO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRDO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRDO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRDO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRDO filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
CRDO beat EPS estimates by 44.2%
Reported EPS: $0.52 vs estimate $0.36. Earnings strength supports our Fair Value of $158.40 (39.1% below current price).
CRDO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRDO filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
CRDO beat EPS estimates by 27.9%
Reported EPS: $0.35 vs estimate $0.27. Earnings strength supports our Fair Value of $158.40 (39.1% below current price).
CRDO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRDO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRDO filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
CRDO beat EPS estimates by 36.5%
Reported EPS: $0.25 vs estimate $0.18. Earnings strength supports our Fair Value of $158.40 (39.1% below current price).
CRDO filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about Credo Technology Group Holding Ltd
What is Credo Technology Group Holding Ltd stock price today?
Credo Technology Group Holding Ltd (CRDO) stock price is $259.90 as of the latest market close, traded on the NASDAQ exchange.
What does Credo Technology Group Holding Ltd do?
Credo Technology Group Holding Ltd provides various high-speed connectivity solutions for optical and electrical Ethernet and PCIe applications in the United States, Taiwan, Mainland China, Hong Kong, and other international markets. It offers ZeroFlap (ZF) active electrical cables and ZF optical transceivers, OmniConnect memory solutions, and a suite of retimers and DSPs for optical and copper Ethernet and PCIe, as well as integrated circuits, active electrical cables, and SerDes chiplets. It also provides intellectual property (IP) solutions, including SerDes IP licensing.
What is Credo Technology Group Holding Ltd market cap?
Credo Technology Group Holding Ltd has a market capitalization of $48.47B, classifying it as a large-cap stock in the Technology sector.
What sector and industry is CRDO in?
Credo Technology Group Holding Ltd operates in the Technology sector, specifically within the Semiconductors industry. It trades on the NASDAQ under the ticker symbol CRDO.
Is CRDO stock overvalued or undervalued?
Based on our valuation model, Credo Technology Group Holding Ltd trades 64.1% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $158.40
- Current Price: $259.90
- Valuation Zone: Overvalued
What is CRDO stock forecast and analyst target price?
Based on 19 Wall Street analysts, the consensus price target for Credo Technology Group Holding Ltd is $279.29, implying upside of 7.5% from the current price.
- Analyst High Target: $350.00
- Analyst Low Target: $184.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Credo Technology Group Holding Ltd revenue and earnings growing?
Here are the analyst consensus growth estimates for Credo Technology Group Holding Ltd:
- Revenue growth (current year est.): 83.9%
- EPS growth (current year est.): 77.1%
- Revenue growth (next year est.): 49.8%
- EPS growth (next year est.): 48.1%
What are Credo Technology Group Holding Ltd's key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $1.3B | Rising |
| Net Income | $0.5B | Rising |
| Free Cash Flow | $0.4B | Rising |
| Gross Margin | 68.0% | Rising |
What is CRDO's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 104.0x
- Forward P/E (next 12 months est.): 28.6x
- FairValueLabs Fair P/E: 40.0x
How volatile is CRDO stock?
Credo Technology Group Holding Ltd has a beta of 3.23, meaning it is significantly more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Credo Technology Group Holding Ltd have?
Credo Technology Group Holding Ltd's balance sheet shows:
- Total Cash: $1.44B
- Total Debt: $25.4M
- Net Cash Position: $1.42B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Credo Technology Group Holding Ltd's free cash flow?
Credo Technology Group Holding Ltd generated $250.8M in trailing twelve-month free cash flow (from $464.3M in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Credo Technology Group Holding Ltd pay a dividend?
Credo Technology Group Holding Ltd does not currently pay a regular dividend to shareholders. The company may be reinvesting all profits back into growth, or it may have suspended its dividend.
Is Credo Technology Group Holding Ltd at risk of going bankrupt?
Credo Technology Group Holding Ltd's Altman Z-Score is 127.74, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Credo Technology Group Holding Ltd have a durable competitive advantage?
Credo Technology Group Holding Ltd scores 2.9/5 stars (Narrow moat · eroding) in our moat analysis:
- ROIC Stability: 2/5
- Gross Margin Trend: 4/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is CRDO's return on equity (ROE)?
Credo Technology Group Holding Ltd's return on equity is 34.4%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy CRDO stock?
CRDO shares can be purchased through any brokerage account that provides access to the NASDAQ. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol CRDO
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is CRDO a value stock or speculative?
FairValueLabs classifies Credo Technology Group Holding Ltd as Value-Speculation. It has some value characteristics but carries elevated risk factors that make it speculative. Extra due diligence is recommended.
Who is the CEO of Credo Technology Group Holding Ltd?
The current CEO of Credo Technology Group Holding Ltd is Mr. William J. Brennan.
What is CRDO's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $2.50
- Forward EPS (next 12 months est.): $9.08
- Analyst consensus EPS (this year): $6.13
- Analyst consensus EPS (next year): $9.08
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FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Aug 13, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
CRDO analysis methodology: How we calculate fair value, Z-Scores, and moat ratings