ALG Valuation

Alamo Group Inc

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212.690

-1.72(-0.802%)1D

Overview
Forecast
Valuation
Earnings

ALG Relative Valuation

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

Historical Valuation

Alamo Group Inc (ALG) is now in the Fair zone, suggesting that its current forward PE ratio of 19.03 is considered Fairly compared with the five-year average of 17.47. The fair price of Alamo Group Inc (ALG) is between 175.56 to 221.43 according to relative valuation methord.

Relative Value

Fair Zone

175.56-221.43

Current Price：214.60

Fair

18.53

Trailing

Forward

10.85

EV/EBITDA

Alamo Group Inc. (ALG) has a current EV/EBITDA of 10.85. The 5-year average EV/EBITDA is 10.43. The thresholds are as follows: Strongly Undervalued below 7.90, Undervalued between 7.90 and 9.17, Fairly Valued between 11.69 and 9.17, Overvalued between 11.69 and 12.95, and Strongly Overvalued above 12.95. The current Forward EV/EBITDA of 10.85 falls within the Historic Trend Line -Fairly Valued range.

13.87

EV/EBIT

Alamo Group Inc. (ALG) has a current EV/EBIT of 13.87. The 5-year average EV/EBIT is 13.56. The thresholds are as follows: Strongly Undervalued below 9.40, Undervalued between 9.40 and 11.48, Fairly Valued between 15.63 and 11.48, Overvalued between 15.63 and 17.71, and Strongly Overvalued above 17.71. The current Forward EV/EBIT of 13.87 falls within the Historic Trend Line -Fairly Valued range.

1.58

Alamo Group Inc. (ALG) has a current PS of 1.58. The 5-year average PS is 1.27. The thresholds are as follows: Strongly Undervalued below 0.94, Undervalued between 0.94 and 1.10, Fairly Valued between 1.43 and 1.10, Overvalued between 1.43 and 1.60, and Strongly Overvalued above 1.60. The current Forward PS of 1.58 falls within the Overvalued range.

16.86

P/OCF

Alamo Group Inc. (ALG) has a current P/OCF of 16.86. The 5-year average P/OCF is 20.52. The thresholds are as follows: Strongly Undervalued below -3.22, Undervalued between -3.22 and 8.65, Fairly Valued between 32.39 and 8.65, Overvalued between 32.39 and 44.25, and Strongly Overvalued above 44.25. The current Forward P/OCF of 16.86 falls within the Historic Trend Line -Fairly Valued range.

21.17

P/FCF

Alamo Group Inc. (ALG) has a current P/FCF of 21.17. The 5-year average P/FCF is 48.87. The thresholds are as follows: Strongly Undervalued below -91.55, Undervalued between -91.55 and -21.34, Fairly Valued between 119.07 and -21.34, Overvalued between 119.07 and 189.28, and Strongly Overvalued above 189.28. The current Forward P/FCF of 21.17 falls within the Historic Trend Line -Fairly Valued range.

Alamo Group Inc (ALG) has a current Price-to-Book (P/B) ratio of 2.36. Compared to its 3-year average P/B ratio of 2.36 , the current P/B ratio is approximately 0.24% higher. Relative to its 5-year average P/B ratio of 2.41, the current P/B ratio is about -1.69% higher. Alamo Group Inc (ALG) has a Forward Free Cash Flow (FCF) yield of approximately 6.81%. Compared to its 3-year average FCF yield of 3.47%, the current FCF yield is approximately 96.38% lower. Relative to its 5-year average FCF yield of 4.15% , the current FCF yield is about 63.96% lower.

2.30

P/B

Median3y

2.36

Median5y

2.41

6.96

FCF Yield

Median3y

3.47

Median5y

4.15

Competitors Valuation Multiple

The average P/S ratio for ALG's competitors is 1.11, providing a benchmark for relative valuation. Alamo Group Inc Corp (ALG) exhibits a P/S ratio of 1.58, which is 42.17% above the industry average. Given its robust revenue growth of 0.67%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Trinity Industries Inc

Greenbrier Companies Inc

Performance Decomposition

Market capitalization of ALG increased by 14.89% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 6.80 to 7.42.

The secondary factor is the P/E Change, contributed 5.10%to the performance.

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

0.67%

416.30M → 419.07M

Revenue Growth

9.12%

6.80 → 7.42

Margin Expansion

5.10%

20.77 → 21.83

P/E Change

14.89%