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 8.70 is considered Undervalued compared with the five-year average of 13.35. The fair price of Alight Inc (ALIT) is between 7.33 to 10.07 according to relative valuation methord. Compared to the current price of 5.10 USD , Alight Inc is Undervalued By 30.46%.
Relative Value
Fair Zone
7.33-10.07
Current Price：5.10
30.46%
Undervalued
8.27
PE
1Y
3Y
5Y
Trailing
Forward
7.23
EV/EBITDA
Alight Inc. (ALIT) has a current EV/EBITDA of 7.23. The 5-year average EV/EBITDA is 10.38. The thresholds are as follows: Strongly Undervalued below 6.87, Undervalued between 6.87 and 8.63, Fairly Valued between 12.13 and 8.63, Overvalued between 12.13 and 13.89, and Strongly Overvalued above 13.89. The current Forward EV/EBITDA of 7.23 falls within the Undervalued range.
70.93
EV/EBIT
Alight Inc. (ALIT) has a current EV/EBIT of 70.93. The 5-year average EV/EBIT is 19.62. The thresholds are as follows: Strongly Undervalued below -401.51, Undervalued between -401.51 and -190.94, Fairly Valued between 230.19 and -190.94, Overvalued between 230.19 and 440.76, and Strongly Overvalued above 440.76. The current Forward EV/EBIT of 70.93 falls within the Historic Trend Line -Fairly Valued range.
1.14
PS
Alight Inc. (ALIT) has a current PS of 1.14. The 5-year average PS is 1.38. The thresholds are as follows: Strongly Undervalued below 0.83, Undervalued between 0.83 and 1.11, Fairly Valued between 1.66 and 1.11, Overvalued between 1.66 and 1.94, and Strongly Overvalued above 1.94. The current Forward PS of 1.14 falls within the Historic Trend Line -Fairly Valued range.
7.65
P/OCF
Alight Inc. (ALIT) has a current P/OCF of 7.65. The 5-year average P/OCF is 7.45. The thresholds are as follows: Strongly Undervalued below -1.55, Undervalued between -1.55 and 2.95, Fairly Valued between 11.95 and 2.95, Overvalued between 11.95 and 16.45, and Strongly Overvalued above 16.45. The current Forward P/OCF of 7.65 falls within the Historic Trend Line -Fairly Valued range.
10.88
P/FCF
Alight Inc. (ALIT) has a current P/FCF of 10.88. The 5-year average P/FCF is 9.94. The thresholds are as follows: Strongly Undervalued below -3.92, Undervalued between -3.92 and 3.01, Fairly Valued between 16.87 and 3.01, Overvalued between 16.87 and 23.79, and Strongly Overvalued above 23.79. The current Forward P/FCF of 10.88 falls within the Historic Trend Line -Fairly Valued range.
Alight Inc (ALIT) has a current Price-to-Book (P/B) ratio of 0.67. Compared to its 3-year average P/B ratio of 0.89 , the current P/B ratio is approximately -24.43% higher. Relative to its 5-year average P/B ratio of 0.87, the current P/B ratio is about -22.83% higher. Alight Inc (ALIT) has a Forward Free Cash Flow (FCF) yield of approximately 3.73%. Compared to its 3-year average FCF yield of 4.20%, the current FCF yield is approximately -11.38% lower. Relative to its 5-year average FCF yield of 3.34% , the current FCF yield is about 11.44% lower.
0.64
P/B
Median3y
0.89
Median5y
0.87
3.94
FCF Yield
Median3y
4.20
Median5y
3.34
Competitors Valuation Multiple
The average P/S ratio for ALIT's competitors is 385.62, providing a benchmark for relative valuation. Alight Inc Corp (ALIT) exhibits a P/S ratio of 1.14, which is -99.71% above the industry average. Given its robust revenue growth of -1.97%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ALIT decreased by 31.29% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -48.72 to -76.18.
The secondary factor is the Revenue Growth, contributed -1.97%to the performance.
Overall, the performance of ALIT in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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