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 8.75 is considered Fairly compared with the five-year average of 17.46. The fair price of ADT Inc (ADT) is between 7.10 to 25.01 according to relative valuation methord.
Relative Value
Fair Zone
7.10-25.01
Current Price：8.11
Fair
8.75
PE
1Y
3Y
5Y
Trailing
Forward
5.20
EV/EBITDA
ADT Inc. (ADT) has a current EV/EBITDA of 5.20. The 5-year average EV/EBITDA is 6.38. The thresholds are as follows: Strongly Undervalued below 4.39, Undervalued between 4.39 and 5.38, Fairly Valued between 7.37 and 5.38, Overvalued between 7.37 and 8.37, and Strongly Overvalued above 8.37. The current Forward EV/EBITDA of 5.20 falls within the Undervalued range.
10.40
EV/EBIT
ADT Inc. (ADT) has a current EV/EBIT of 10.40. The 5-year average EV/EBIT is -75.80. The thresholds are as follows: Strongly Undervalued below -1149.62, Undervalued between -1149.62 and -612.71, Fairly Valued between 461.12 and -612.71, Overvalued between 461.12 and 998.03, and Strongly Overvalued above 998.03. The current Forward EV/EBIT of 10.40 falls within the Historic Trend Line -Fairly Valued range.
1.25
PS
ADT Inc. (ADT) has a current PS of 1.25. The 5-year average PS is 1.22. The thresholds are as follows: Strongly Undervalued below 0.82, Undervalued between 0.82 and 1.02, Fairly Valued between 1.42 and 1.02, Overvalued between 1.42 and 1.62, and Strongly Overvalued above 1.62. The current Forward PS of 1.25 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 1.79. The thresholds are as follows: Strongly Undervalued below -2.03, Undervalued between -2.03 and -0.12, Fairly Valued between 3.70 and -0.12, Overvalued between 3.70 and 5.61, and Strongly Overvalued above 5.61. The current Forward P/OCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.
8.54
P/FCF
ADT Inc. (ADT) has a current P/FCF of 8.54. The 5-year average P/FCF is 10.86. The thresholds are as follows: Strongly Undervalued below 1.99, Undervalued between 1.99 and 6.43, Fairly Valued between 15.30 and 6.43, Overvalued between 15.30 and 19.74, and Strongly Overvalued above 19.74. The current Forward P/FCF of 8.54 falls within the Historic Trend Line -Fairly Valued range.
ADT Inc (ADT) has a current Price-to-Book (P/B) ratio of 1.80. Compared to its 3-year average P/B ratio of 1.82 , the current P/B ratio is approximately -0.77% higher. Relative to its 5-year average P/B ratio of 2.03, the current P/B ratio is about -11.11% higher. ADT Inc (ADT) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 16.69%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 14.39% , the current FCF yield is about -100.00% lower.
1.80
P/B
Median3y
1.82
Median5y
2.03
20.96
FCF Yield
Median3y
16.69
Median5y
14.39
Competitors Valuation Multiple
The average P/S ratio for ADT's competitors is , providing a benchmark for relative valuation. ADT Inc Corp (ADT) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 4.35%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ADT increased by 17.37% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 10.26 to 11.16.
The secondary factor is the Revenue Growth, contributed 4.35%to the performance.
Overall, the performance of ADT in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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