ALIT Relative Valuation
ALIT'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, ALIT is overvalued; if below, it's undervalued.
Historical Valuation
Alight Inc (ALIT) is now in the Undervalued zone, suggesting that its current forward PE ratio of 3.22 is considered Undervalued compared with the five-year average of 12.55. The fair price of Alight Inc (ALIT) is between 5.35 to 8.60 according to relative valuation methord. Compared to the current price of 1.75 USD , Alight Inc is Undervalued By 67.26%.
Relative Value
Fair Zone
5.35-8.60
Current Price：1.75
67.26%
Undervalued
3.22
PE
1Y
3Y
5Y
4.57
EV/EBITDA
Alight Inc. (ALIT) has a current EV/EBITDA of 4.57. The 5-year average EV/EBITDA is 9.91. The thresholds are as follows: Strongly Undervalued below 5.47, Undervalued between 5.47 and 7.69, Fairly Valued between 12.13 and 7.69, Overvalued between 12.13 and 14.35, and Strongly Overvalued above 14.35. The current Forward EV/EBITDA of 4.57 falls within the Strongly Undervalued range.
25.34
EV/EBIT
Alight Inc. (ALIT) has a current EV/EBIT of 25.34. The 5-year average EV/EBIT is 21.83. The thresholds are as follows: Strongly Undervalued below -379.42, Undervalued between -379.42 and -178.80, Fairly Valued between 222.45 and -178.80, Overvalued between 222.45 and 423.07, and Strongly Overvalued above 423.07. The current Forward EV/EBIT of 25.34 falls within the Historic Trend Line -Fairly Valued range.
0.43
PS
Alight Inc. (ALIT) has a current PS of 0.43. The 5-year average PS is 1.32. The thresholds are as follows: Strongly Undervalued below 0.64, Undervalued between 0.64 and 0.98, Fairly Valued between 1.66 and 0.98, Overvalued between 1.66 and 2.00, and Strongly Overvalued above 2.00. The current Forward PS of 0.43 falls within the Strongly Undervalued range.
2.65
P/OCF
Alight Inc. (ALIT) has a current P/OCF of 2.65. The 5-year average P/OCF is 7.13. The thresholds are as follows: Strongly Undervalued below -1.68, Undervalued between -1.68 and 2.73, Fairly Valued between 11.53 and 2.73, Overvalued between 11.53 and 15.93, and Strongly Overvalued above 15.93. The current Forward P/OCF of 2.65 falls within the Undervalued range.
3.59
P/FCF
Alight Inc. (ALIT) has a current P/FCF of 3.59. The 5-year average P/FCF is 9.52. The thresholds are as follows: Strongly Undervalued below -3.92, Undervalued between -3.92 and 2.80, Fairly Valued between 16.24 and 2.80, Overvalued between 16.24 and 22.96, and Strongly Overvalued above 22.96. The current Forward P/FCF of 3.59 falls within the Historic Trend Line -Fairly Valued range.
Alight Inc (ALIT) has a current Price-to-Book (P/B) ratio of 0.49. Compared to its 3-year average P/B ratio of 0.86 , the current P/B ratio is approximately -43.19% higher. Relative to its 5-year average P/B ratio of 0.86, the current P/B ratio is about -42.63% higher. Alight Inc (ALIT) has a Forward Free Cash Flow (FCF) yield of approximately 24.72%. Compared to its 3-year average FCF yield of 6.00%, the current FCF yield is approximately 311.90% lower. Relative to its 5-year average FCF yield of 4.43% , the current FCF yield is about 457.91% lower.
0.49
P/B
Median3y
0.86
Median5y
0.86
24.72
FCF Yield
Median3y
6.00
Median5y
4.43
Competitors Valuation Multiple
The average P/S ratio for ALIT's competitors is 1.44, providing a benchmark for relative valuation. Alight Inc Corp (ALIT) exhibits a P/S ratio of 0.43, which is -70.17% above the industry average. Given its robust revenue growth of -3.96%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ALIT decreased by 72.26% over the past 1 year. The primary factor behind the change was an decrease in Margin Expansion from -7.93 to -200.19.
The secondary factor is the Revenue Growth, contributed -3.96%to the performance.
Overall, the performance of ALIT in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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Frequently Asked Questions
Is Alight Inc (ALIT) currently overvalued or undervalued?
Alight Inc (ALIT) is now in the Undervalued zone, suggesting that its current forward PE ratio of 3.22 is considered Undervalued compared with the five-year average of 12.55. The fair price of Alight Inc (ALIT) is between 5.35 to 8.60 according to relative valuation methord. Compared to the current price of 1.75 USD , Alight Inc is Undervalued By 67.26% .
What is Alight Inc (ALIT) fair value?
ALIT'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 Alight Inc (ALIT) is between 5.35 to 8.60 according to relative valuation methord.
How does ALIT's valuation metrics compare to the industry average?
The average P/S ratio for ALIT's competitors is 1.44, providing a benchmark for relative valuation. Alight Inc Corp (ALIT) exhibits a P/S ratio of 0.43, which is -70.17% above the industry average. Given its robust revenue growth of -3.96%, this premium appears unsustainable.
What is the current P/B ratio for Alight Inc (ALIT) as of Jan 07 2026?
As of Jan 07 2026, Alight Inc (ALIT) has a P/B ratio of 0.49. This indicates that the market values ALIT at 0.49 times its book value.
What is the current FCF Yield for Alight Inc (ALIT) as of Jan 07 2026?
As of Jan 07 2026, Alight Inc (ALIT) has a FCF Yield of 24.72%. This means that for every dollar of Alight Inc’s market capitalization, the company generates 24.72 cents in free cash flow.
What is the current Forward P/E ratio for Alight Inc (ALIT) as of Jan 07 2026?
As of Jan 07 2026, Alight Inc (ALIT) has a Forward P/E ratio of 3.22. This means the market is willing to pay $3.22 for every dollar of Alight Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Alight Inc (ALIT) as of Jan 07 2026?
As of Jan 07 2026, Alight Inc (ALIT) has a Forward P/S ratio of 0.43. This means the market is valuing ALIT at $0.43 for every dollar of expected revenue over the next 12 months.