ABM Valuation

ABM Industries Inc

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49.660

+1.8(3.761%)1D

Overview
Forecast
Valuation
Earnings

ABM Relative Valuation

ABM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ABM is overvalued; if below, it's undervalued.

Historical Valuation

ABM Industries Inc (ABM) is now in the Fair zone, suggesting that its current forward PE ratio of 12.36 is considered Fairly compared with the five-year average of 13.25. The fair price of ABM Industries Inc (ABM) is between 45.87 to 55.89 according to relative valuation methord.

Relative Value

Fair Zone

45.87-55.89

Current Price：48.34

Fair

12.28

Trailing

Forward

8.72

EV/EBITDA

ABM Industries Inc. (ABM) has a current EV/EBITDA of 8.72. The 5-year average EV/EBITDA is 8.42. The thresholds are as follows: Strongly Undervalued below 6.89, Undervalued between 6.89 and 7.66, Fairly Valued between 9.18 and 7.66, Overvalued between 9.18 and 9.94, and Strongly Overvalued above 9.94. The current Forward EV/EBITDA of 8.72 falls within the Historic Trend Line -Fairly Valued range.

10.87

EV/EBIT

ABM Industries Inc. (ABM) has a current EV/EBIT of 10.87. The 5-year average EV/EBIT is 10.88. The thresholds are as follows: Strongly Undervalued below 8.98, Undervalued between 8.98 and 9.93, Fairly Valued between 11.82 and 9.93, Overvalued between 11.82 and 12.77, and Strongly Overvalued above 12.77. The current Forward EV/EBIT of 10.87 falls within the Historic Trend Line -Fairly Valued range.

0.34

ABM Industries Inc. (ABM) has a current PS of 0.34. The 5-year average PS is 0.39. The thresholds are as follows: Strongly Undervalued below 0.28, Undervalued between 0.28 and 0.34, Fairly Valued between 0.44 and 0.34, Overvalued between 0.44 and 0.50, and Strongly Overvalued above 0.50. The current Forward PS of 0.34 falls within the Historic Trend Line -Fairly Valued range.

8.82

P/OCF

ABM Industries Inc. (ABM) has a current P/OCF of 8.82. The 5-year average P/OCF is 10.99. The thresholds are as follows: Strongly Undervalued below 1.58, Undervalued between 1.58 and 6.28, Fairly Valued between 15.69 and 6.28, Overvalued between 15.69 and 20.40, and Strongly Overvalued above 20.40. The current Forward P/OCF of 8.82 falls within the Historic Trend Line -Fairly Valued range.

11.20

P/FCF

ABM Industries Inc. (ABM) has a current P/FCF of 11.20. The 5-year average P/FCF is 15.07. The thresholds are as follows: Strongly Undervalued below -11.01, Undervalued between -11.01 and 2.03, Fairly Valued between 28.11 and 2.03, Overvalued between 28.11 and 41.16, and Strongly Overvalued above 41.16. The current Forward P/FCF of 11.20 falls within the Historic Trend Line -Fairly Valued range.

ABM Industries Inc (ABM) has a current Price-to-Book (P/B) ratio of 1.64. Compared to its 3-year average P/B ratio of 1.66 , the current P/B ratio is approximately -1.26% higher. Relative to its 5-year average P/B ratio of 1.75, the current P/B ratio is about -5.97% higher. ABM Industries Inc (ABM) has a Forward Free Cash Flow (FCF) yield of approximately -0.94%. Compared to its 3-year average FCF yield of 4.18%, the current FCF yield is approximately -122.40% lower. Relative to its 5-year average FCF yield of 6.69% , the current FCF yield is about -114.00% lower.

1.63

P/B

Median3y

1.66

Median5y

1.75

-0.94

FCF Yield

Median3y

4.18

Median5y

6.69

Competitors Valuation Multiple

The average P/S ratio for ABM's competitors is 0.92, providing a benchmark for relative valuation. ABM Industries Inc Corp (ABM) exhibits a P/S ratio of 0.34, which is -62.66% above the industry average. Given its robust revenue growth of 4.63%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

PagSeguro Digital Ltd

Brookfield Business Partners LP

Performance Decomposition

Market capitalization of ABM decreased by 12.27% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 2.02B to 2.11B.

The secondary factor is the Margin Expansion, contributed -7.83%to the performance.

Overall, the performance of ABM in the past 1 year is driven by Revenue Growth. Which is more sustainable.

4.63%

2.02B → 2.11B

Revenue Growth

-7.83%

2.17 → 2.00

Margin Expansion

-9.07%

42.34 → 38.50

P/E Change

-12.27%