ADT PE Ratio & Valuation,Is ADT Overvalued

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 8.72 is considered Fairly compared with the five-year average of 17.45. The fair price of ADT Inc (ADT) is between 7.66 to 25.84 according to relative valuation methord.

Relative Value

Fair Zone

7.66-25.84

Current Price：8.20

Fair

8.72

5.16

EV/EBITDA

ADT Inc. (ADT) has a current EV/EBITDA of 5.16. The 5-year average EV/EBITDA is 6.34. The thresholds are as follows: Strongly Undervalued below 4.35, Undervalued between 4.35 and 5.34, Fairly Valued between 7.33 and 5.34, Overvalued between 7.33 and 8.32, and Strongly Overvalued above 8.32. The current Forward EV/EBITDA of 5.16 falls within the Undervalued range.

10.32

EV/EBIT

ADT Inc. (ADT) has a current EV/EBIT of 10.32. The 5-year average EV/EBIT is -67.44. The thresholds are as follows: Strongly Undervalued below -1102.19, Undervalued between -1102.19 and -584.81, Fairly Valued between 449.94 and -584.81, Overvalued between 449.94 and 967.32, and Strongly Overvalued above 967.32. The current Forward EV/EBIT of 10.32 falls within the Historic Trend Line -Fairly Valued range.

1.23

ADT Inc. (ADT) has a current PS of 1.23. 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 1.23 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 1.72. The thresholds are as follows: Strongly Undervalued below -2.06, Undervalued between -2.06 and -0.17, Fairly Valued between 3.61 and -0.17, Overvalued between 3.61 and 5.50, and Strongly Overvalued above 5.50. The current Forward P/OCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

8.40

P/FCF

ADT Inc. (ADT) has a current P/FCF of 8.40. The 5-year average P/FCF is 10.62. The thresholds are as follows: Strongly Undervalued below 2.38, Undervalued between 2.38 and 6.50, Fairly Valued between 14.74 and 6.50, Overvalued between 14.74 and 18.85, and Strongly Overvalued above 18.85. The current Forward P/FCF of 8.40 falls within the Historic Trend Line -Fairly Valued range.

ADT Inc (ADT) has a current Price-to-Book (P/B) ratio of 1.78. Compared to its 3-year average P/B ratio of 1.79 , the current P/B ratio is approximately -0.67% higher. Relative to its 5-year average P/B ratio of 2.02, the current P/B ratio is about -11.96% higher. ADT Inc (ADT) has a Forward Free Cash Flow (FCF) yield of approximately 21.30%. Compared to its 3-year average FCF yield of 16.99%, the current FCF yield is approximately 25.37% lower. Relative to its 5-year average FCF yield of 14.53% , the current FCF yield is about 46.61% lower.

1.78

P/B

Median3y

1.79

Median5y

2.02

21.30

FCF Yield

Median3y

16.99

Median5y

14.53

Competitors Valuation Multiple

The average P/S ratio for ADT's competitors is 1.59, providing a benchmark for relative valuation. ADT Inc Corp (ADT) exhibits a P/S ratio of 1.23, which is -22.43% above the industry average. Given its robust revenue growth of 4.35%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of ADT increased by 6.77% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.24B to 1.30B.

The secondary factor is the Margin Expansion, contributed 4.24%to the performance.

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

4.35%

1.24B → 1.30B

Revenue Growth

4.24%

10.61 → 11.06

Margin Expansion

-1.82%

11.23 → 11.03

P/E Change

6.77%

7.68 → 8.20

Mkt Cap Growth

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Frequently Asked Questions

Is ADT Inc (ADT) currently overvalued or undervalued?

What is ADT Inc (ADT) fair value?

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. The fair price of ADT Inc (ADT) is between 7.66 to 25.84 according to relative valuation methord.

How does ADT's valuation metrics compare to the industry average?

What is the current P/B ratio for ADT Inc (ADT) as of Jan 08 2026?

As of Jan 08 2026, ADT Inc (ADT) has a P/B ratio of 1.78. This indicates that the market values ADT at 1.78 times its book value.

What is the current FCF Yield for ADT Inc (ADT) as of Jan 08 2026?

As of Jan 08 2026, ADT Inc (ADT) has a FCF Yield of 21.30%. This means that for every dollar of ADT Inc’s market capitalization, the company generates 21.30 cents in free cash flow.

What is the current Forward P/E ratio for ADT Inc (ADT) as of Jan 08 2026?

As of Jan 08 2026, ADT Inc (ADT) has a Forward P/E ratio of 8.72. This means the market is willing to pay $8.72 for every dollar of ADT Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for ADT Inc (ADT) as of Jan 08 2026?

As of Jan 08 2026, ADT Inc (ADT) has a Forward P/S ratio of 1.23. This means the market is valuing ADT at $1.23 for every dollar of expected revenue over the next 12 months.

ADT Valuation