ADT Valuation

ADT Inc

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8.710

+0.03(0.346%)1D

Overview
Forecast
Valuation
Earnings

ADT Relative Valuation

ADT'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, ADT is overvalued; if below, it's undervalued.

Historical Valuation

ADT Inc (ADT) is now in the Fair zone, suggesting that its current forward PE ratio of 9.53 is considered Fairly compared with the five-year average of 17.37. The fair price of ADT Inc (ADT) is between 7.53 to 25.24 according to relative valuation methord.

Relative Value

Fair Zone

7.53-25.24

Current Price：8.68

Fair

9.53

Trailing

Forward

5.44

EV/EBITDA

ADT Inc. (ADT) has a current EV/EBITDA of 5.44. The 5-year average EV/EBITDA is 6.50. The thresholds are as follows: Strongly Undervalued below 4.49, Undervalued between 4.49 and 5.50, Fairly Valued between 7.51 and 5.50, Overvalued between 7.51 and 8.52, and Strongly Overvalued above 8.52. The current Forward EV/EBITDA of 5.44 falls within the Undervalued range.

10.56

EV/EBIT

ADT Inc. (ADT) has a current EV/EBIT of 10.56. The 5-year average EV/EBIT is -72.41. The thresholds are as follows: Strongly Undervalued below -1147.25, Undervalued between -1147.25 and -609.83, Fairly Valued between 465.01 and -609.83, Overvalued between 465.01 and 1002.44, and Strongly Overvalued above 1002.44. The current Forward EV/EBIT of 10.56 falls within the Historic Trend Line -Fairly Valued range.

1.37

ADT Inc. (ADT) has a current PS of 1.37. The 5-year average PS is 1.21. The thresholds are as follows: Strongly Undervalued below 0.81, Undervalued between 0.81 and 1.01, Fairly Valued between 1.42 and 1.01, Overvalued between 1.42 and 1.62, and Strongly Overvalued above 1.62. The current Forward PS of 1.37 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/OCF

ADT Inc. (ADT) has a current P/OCF of 0.00. The 5-year average P/OCF is 2.02. The thresholds are as follows: Strongly Undervalued below -1.85, Undervalued between -1.85 and 0.08, Fairly Valued between 3.96 and 0.08, Overvalued between 3.96 and 5.90, and Strongly Overvalued above 5.90. The current Forward P/OCF of 0.00 falls within the Undervalued range.

8.53

P/FCF

ADT Inc. (ADT) has a current P/FCF of 8.53. The 5-year average P/FCF is 11.55. The thresholds are as follows: Strongly Undervalued below 1.50, Undervalued between 1.50 and 6.52, Fairly Valued between 16.57 and 6.52, Overvalued between 16.57 and 21.60, and Strongly Overvalued above 21.60. The current Forward P/FCF of 8.53 falls within the Historic Trend Line -Fairly Valued range.

ADT Inc (ADT) has a current Price-to-Book (P/B) ratio of 1.96. Compared to its 3-year average P/B ratio of 1.86 , the current P/B ratio is approximately 5.42% higher. Relative to its 5-year average P/B ratio of 2.04, the current P/B ratio is about -4.15% higher. ADT Inc (ADT) has a Forward Free Cash Flow (FCF) yield of approximately 19.11%. Compared to its 3-year average FCF yield of 15.91%, the current FCF yield is approximately 20.17% lower. Relative to its 5-year average FCF yield of 14.08% , the current FCF yield is about 35.71% lower.

1.96

P/B

Median3y

1.86

Median5y

2.04

19.11

FCF Yield

Median3y

15.91

Median5y

14.08

Competitors Valuation Multiple

The average P/S ratio for ADT's competitors is 1.86, providing a benchmark for relative valuation. ADT Inc Corp (ADT) exhibits a P/S ratio of 1.37, which is -26.24% above the industry average. Given its robust revenue growth of 6.85%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Bright Horizons Family Solutions Inc

Charles River Laboratories International Inc

Performance Decomposition

Market capitalization of ADT increased by 20.92% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 10.48 to 13.07.

The secondary factor is the Revenue Growth, contributed 6.85%to the performance.

Overall, the performance of ADT in the past 1 year is driven by Margin Expansion. Which is more sustainable.

6.85%

1.20B → 1.29B

Revenue Growth

24.71%

10.48 → 13.07

Margin Expansion

-10.64%

13.97 → 12.48

P/E Change

20.92%