ALG PE Ratio & Valuation,Is ALG Overvalued

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 Undervalued zone, suggesting that its current forward PE ratio of 15.14 is considered Undervalued compared with the five-year average of 17.23. The fair price of Alamo Group Inc (ALG) is between 183.14 to 230.86 according to relative valuation methord. Compared to the current price of 182.02 USD , Alamo Group Inc is Undervalued By 0.61%.

Relative Value

Fair Zone

183.14-230.86

Current Price：182.02

0.61%

Undervalued

15.14

8.26

EV/EBITDA

Alamo Group Inc. (ALG) has a current EV/EBITDA of 8.26. The 5-year average EV/EBITDA is 10.23. The thresholds are as follows: Strongly Undervalued below 7.69, Undervalued between 7.69 and 8.96, Fairly Valued between 11.50 and 8.96, Overvalued between 11.50 and 12.77, and Strongly Overvalued above 12.77. The current Forward EV/EBITDA of 8.26 falls within the Undervalued range.

11.27

EV/EBIT

Alamo Group Inc. (ALG) has a current EV/EBIT of 11.27. The 5-year average EV/EBIT is 13.24. The thresholds are as follows: Strongly Undervalued below 9.33, Undervalued between 9.33 and 11.28, Fairly Valued between 15.19 and 11.28, Overvalued between 15.19 and 17.14, and Strongly Overvalued above 17.14. The current Forward EV/EBIT of 11.27 falls within the Undervalued range.

1.21

Alamo Group Inc. (ALG) has a current PS of 1.21. The 5-year average PS is 1.28. The thresholds are as follows: Strongly Undervalued below 0.94, Undervalued between 0.94 and 1.11, Fairly Valued between 1.44 and 1.11, Overvalued between 1.44 and 1.61, and Strongly Overvalued above 1.61. The current Forward PS of 1.21 falls within the Historic Trend Line -Fairly Valued range.

12.36

P/OCF

Alamo Group Inc. (ALG) has a current P/OCF of 12.36. The 5-year average P/OCF is 19.68. The thresholds are as follows: Strongly Undervalued below -3.73, Undervalued between -3.73 and 7.98, Fairly Valued between 31.39 and 7.98, Overvalued between 31.39 and 43.10, and Strongly Overvalued above 43.10. The current Forward P/OCF of 12.36 falls within the Historic Trend Line -Fairly Valued range.

15.42

P/FCF

Alamo Group Inc. (ALG) has a current P/FCF of 15.42. The 5-year average P/FCF is 46.73. The thresholds are as follows: Strongly Undervalued below -94.29, Undervalued between -94.29 and -23.78, Fairly Valued between 117.24 and -23.78, Overvalued between 117.24 and 187.75, and Strongly Overvalued above 187.75. The current Forward P/FCF of 15.42 falls within the Historic Trend Line -Fairly Valued range.

Alamo Group Inc (ALG) has a current Price-to-Book (P/B) ratio of 1.80. Compared to its 3-year average P/B ratio of 2.32 , the current P/B ratio is approximately -22.38% higher. Relative to its 5-year average P/B ratio of 2.37, the current P/B ratio is about -23.85% higher. Alamo Group Inc (ALG) has a Forward Free Cash Flow (FCF) yield of approximately 7.27%. Compared to its 3-year average FCF yield of 4.71%, the current FCF yield is approximately 54.32% lower. Relative to its 5-year average FCF yield of 3.95% , the current FCF yield is about 84.17% lower.

1.80

P/B

Median3y

2.32

Median5y

2.37

7.27

FCF Yield

Median3y

4.71

Median5y

3.95

Competitors Valuation Multiple

The average P/S ratio for ALG's competitors is 1.07, providing a benchmark for relative valuation. Alamo Group Inc Corp (ALG) exhibits a P/S ratio of 1.21, which is 13.16% above the industry average. Given its robust revenue growth of 4.67%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of ALG decreased by 1.91% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 16.84 to 17.68.

The secondary factor is the Revenue Growth, contributed 4.67%to the performance.

Overall, the performance of ALG in the past 1 year is driven by P/E Change. Which is more unsustainable.

4.67%

401.30M → 420.04M

Revenue Growth

-11.57%

6.83 → 6.04

Margin Expansion

4.99%

16.84 → 17.68

P/E Change

-1.91%

185.56 → 182.02

Mkt Cap Growth

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Frequently Asked Questions

Is Alamo Group Inc (ALG) currently overvalued or undervalued?

What is Alamo Group Inc (ALG) fair value?

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. The fair price of Alamo Group Inc (ALG) is between 183.14 to 230.86 according to relative valuation methord.

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

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

As of Jan 08 2026, Alamo Group Inc (ALG) has a P/B ratio of 1.80. This indicates that the market values ALG at 1.80 times its book value.

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

As of Jan 08 2026, Alamo Group Inc (ALG) has a FCF Yield of 7.27%. This means that for every dollar of Alamo Group Inc’s market capitalization, the company generates 7.27 cents in free cash flow.

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

As of Jan 08 2026, Alamo Group Inc (ALG) has a Forward P/E ratio of 15.14. This means the market is willing to pay $15.14 for every dollar of Alamo Group Inc’s expected earnings over the next 12 months.

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

As of Jan 08 2026, Alamo Group Inc (ALG) has a Forward P/S ratio of 1.21. This means the market is valuing ALG at $1.21 for every dollar of expected revenue over the next 12 months.

ALG Valuation