AGX Valuation

Argan Inc

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311.580

+0.2(0.064%)1D

AGX Relative Valuation

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

Historical Valuation

Argan Inc (AGX) is now in the Overvalued zone, suggesting that its current forward PE ratio of 38.04 is considered Overvalued compared with the five-year average of 18.65. The fair price of Argan Inc (AGX) is between 125.84 to 217.46 according to relative valuation methord. Compared to the current price of 311.58 USD , Argan Inc is Overvalued By 43.28%.

Relative Value

Fair Zone

125.84-217.46

Current Price：311.58

43.28%

Overvalued

38.04

Trailing

Forward

24.47

EV/EBITDA

Argan Inc. (AGX) has a current EV/EBITDA of 24.47. The 5-year average EV/EBITDA is 6.72. The thresholds are as follows: Strongly Undervalued below -3.60, Undervalued between -3.60 and 1.56, Fairly Valued between 11.89 and 1.56, Overvalued between 11.89 and 17.05, and Strongly Overvalued above 17.05. The current Forward EV/EBITDA of 24.47 falls within the Strongly Overvalued range.

29.60

EV/EBIT

Argan Inc. (AGX) has a current EV/EBIT of 29.60. The 5-year average EV/EBIT is 8.30. The thresholds are as follows: Strongly Undervalued below -4.77, Undervalued between -4.77 and 1.77, Fairly Valued between 14.84 and 1.77, Overvalued between 14.84 and 21.38, and Strongly Overvalued above 21.38. The current Forward EV/EBIT of 29.60 falls within the Strongly Overvalued range.

311.58

Argan Inc. (AGX) has a current PS of 311.58. The 5-year average PS is 3.82. The thresholds are as follows: Strongly Undervalued below -50.51, Undervalued between -50.51 and -23.35, Fairly Valued between 30.98 and -23.35, Overvalued between 30.98 and 58.14, and Strongly Overvalued above 58.14. The current Forward PS of 311.58 falls within the Strongly Overvalued range.

34.85

P/OCF

Argan Inc. (AGX) has a current P/OCF of 34.85. The 5-year average P/OCF is 18.52. The thresholds are as follows: Strongly Undervalued below -6.62, Undervalued between -6.62 and 5.95, Fairly Valued between 31.08 and 5.95, Overvalued between 31.08 and 43.65, and Strongly Overvalued above 43.65. The current Forward P/OCF of 34.85 falls within the Overvalued range.

36.55

P/FCF

Argan Inc. (AGX) has a current P/FCF of 36.55. The 5-year average P/FCF is 20.06. The thresholds are as follows: Strongly Undervalued below -7.89, Undervalued between -7.89 and 6.08, Fairly Valued between 34.03 and 6.08, Overvalued between 34.03 and 48.01, and Strongly Overvalued above 48.01. The current Forward P/FCF of 36.55 falls within the Overvalued range.

Argan Inc (AGX) has a current Price-to-Book (P/B) ratio of 10.95. Compared to its 3-year average P/B ratio of 4.05 , the current P/B ratio is approximately 170.10% higher. Relative to its 5-year average P/B ratio of 3.23, the current P/B ratio is about 238.68% higher. Argan Inc (AGX) has a Forward Free Cash Flow (FCF) yield of approximately 3.26%. Compared to its 3-year average FCF yield of 6.85%, the current FCF yield is approximately -52.42% lower. Relative to its 5-year average FCF yield of 7.78% , the current FCF yield is about -58.08% lower.

10.95

P/B

Median3y

4.05

Median5y

3.23

3.26

FCF Yield

Median3y

6.85

Median5y

7.78

Competitors Valuation Multiple

The average P/S ratio for AGX's competitors is 131.78, providing a benchmark for relative valuation. Argan Inc Corp (AGX) exhibits a P/S ratio of 311.58, which is 136.44% above the industry average. Given its robust revenue growth of 4.73%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Granite Construction Inc

Everus Construction Group Inc

Performance Decomposition

Market capitalization of AGX increased by 99.81% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 8.02 to 14.84.

The secondary factor is the P/E Change, contributed 10.04%to the performance.

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

4.73%

227.02M → 237.74M

Revenue Growth

85.04%

8.02 → 14.84

Margin Expansion

10.04%

34.07 → 37.49

P/E Change

99.81%