Lightwave Logic, Inc. (LWLG)
Valuation Overview•Is Lightwave Logic, Inc. Overvalued or Undervalued?
Market price has outpaced base-case intrinsic cash flows, pricing in significant future growth optimism.
Fragile underlying quality score of 38/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Mixed fundamental profile with offsetting strengths and weaknesses.
Wall Street sentiment is generally neutral. The company currently dilutes shareholders to fund operations and growth rather than returning capital.
LWLG struggles with subpar profitability and pressured margins. This is backed by a fortress balance sheet, holding significant net cash ($66M) and minimal debt risk.
The company maintains stable top-line performance paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (-9288.7%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $29K | +147.7% | — | — | — | |
| EBITDA | -$6.2M | — | -5.0% | — | — | |
| Net Income | -$6.3M | +9.9% | -5.6% | — | -15.4% | |
| EPS (Diluted) | $-0.04 | +15.8% | — | — | -7.1% | |
| Free Cash Flow | -$4.5M | +17.4% | -7.6% | -24.3% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | -566.7% | -202.4% | -202.4% | -202.4% |
| Operating Margin | -9288.7% | -28440.5% | -28440.5% | -28440.5% |
| Net Margin | -9015.6% | -28030.2% | -28030.2% | -28030.2% |
| FCF Margin | -6253.7% | -21517.9% | -21517.9% | -21517.9% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | — | $-0.04 | — | ||
| Q1'26 | — | $-0.04 | — | ||
| Q4'25 | — | $-0.04 | — | ||
| Q3'25 | — | $-0.05 | — | ||
| Q2'25 | — | $-0.04 | — | ||
| Q1'25 | — | $-0.05 | — | ||
| Q4'24 | — | $-0.04 | — | ||
| Q3'24 | — | $-0.05 | — |
Total return is +565.9% (1Y), outperforming the benchmark by +545.0%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +129.2% | +121.9% | — |
| 1Y | +565.9% | +545.0% | — |
| 3YCAGR | +7.6% | -8.2% | — |
| 5YCAGR | -2.9% | -8.5% | — |
| 10YCAGR | +30.2% | +17.6% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Lightwave Logic, Inc. (LWLG) valuation, health, and returns.
Lightwave Logic, Inc. is estimated to be overvalued under our discounted cash flow framework. overvalued (implying -94.6% downside from DCF intrinsic value of $0.43)
Lightwave Logic, Inc. has multiple valuation anchors: DCF Intrinsic Value: $0.43. A convergence of these signals offers higher conviction.
Lightwave Logic, Inc. displays weak financial health with a composite quality score of 38/100, supported by a Altman Z-Score of 100.0 (safe zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of -185.9%.
Lightwave Logic, Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Lightwave Logic, Inc.'s current growth trajectory is Stable. The company achieved +147.7% 1Y revenue growth and +15.8% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 0 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for Lightwave Logic, Inc. include: -56.7% 1-year max drawdown, high beta (3.21x market volatility). Volatility risk is characterized by a beta of 3.21x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.