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 3.60 is considered Undervalued compared with the five-year average of 12.70. The fair price of Alight Inc (ALIT) is between 6.63 to 10.06 according to relative valuation methord. Compared to the current price of 2.16 USD , Alight Inc is Undervalued By 67.41%.
Relative Value
Fair Zone
6.63-10.06
Current Price：2.16
67.41%
Undervalued
3.60
PE
1Y
3Y
5Y
Trailing
Forward
4.75
EV/EBITDA
Alight Inc. (ALIT) has a current EV/EBITDA of 4.75. The 5-year average EV/EBITDA is 10.00. The thresholds are as follows: Strongly Undervalued below 5.75, Undervalued between 5.75 and 7.88, Fairly Valued between 12.13 and 7.88, Overvalued between 12.13 and 14.26, and Strongly Overvalued above 14.26. The current Forward EV/EBITDA of 4.75 falls within the Strongly Undervalued range.
26.66
EV/EBIT
Alight Inc. (ALIT) has a current EV/EBIT of 26.66. The 5-year average EV/EBIT is 21.75. The thresholds are as follows: Strongly Undervalued below -383.10, Undervalued between -383.10 and -180.68, Fairly Valued between 224.17 and -180.68, Overvalued between 224.17 and 426.60, and Strongly Overvalued above 426.60. The current Forward EV/EBIT of 26.66 falls within the Historic Trend Line -Fairly Valued range.
0.49
PS
Alight Inc. (ALIT) has a current PS of 0.49. The 5-year average PS is 1.33. The thresholds are as follows: Strongly Undervalued below 0.69, Undervalued between 0.69 and 1.01, Fairly Valued between 1.65 and 1.01, Overvalued between 1.65 and 1.98, and Strongly Overvalued above 1.98. The current Forward PS of 0.49 falls within the Strongly Undervalued range.
3.06
P/OCF
Alight Inc. (ALIT) has a current P/OCF of 3.06. The 5-year average P/OCF is 7.20. The thresholds are as follows: Strongly Undervalued below -1.60, Undervalued between -1.60 and 2.80, Fairly Valued between 11.61 and 2.80, Overvalued between 11.61 and 16.01, and Strongly Overvalued above 16.01. The current Forward P/OCF of 3.06 falls within the Historic Trend Line -Fairly Valued range.
4.14
P/FCF
Alight Inc. (ALIT) has a current P/FCF of 4.14. The 5-year average P/FCF is 9.62. The thresholds are as follows: Strongly Undervalued below -3.85, Undervalued between -3.85 and 2.89, Fairly Valued between 16.36 and 2.89, Overvalued between 16.36 and 23.10, and Strongly Overvalued above 23.10. The current Forward P/FCF of 4.14 falls within the Historic Trend Line -Fairly Valued range.
Alight Inc (ALIT) has a current Price-to-Book (P/B) ratio of 0.56. Compared to its 3-year average P/B ratio of 0.87 , the current P/B ratio is approximately -35.46% higher. Relative to its 5-year average P/B ratio of 0.86, the current P/B ratio is about -34.51% higher. Alight Inc (ALIT) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 5.46%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.10% , the current FCF yield is about -100.00% lower.
0.56
P/B
Median3y
0.87
Median5y
0.86
21.42
FCF Yield
Median3y
5.46
Median5y
4.10
Competitors Valuation Multiple
The average P/S ratio for ALIT's competitors is , providing a benchmark for relative valuation. Alight Inc Corp (ALIT) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of -3.96%, 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 68.79% over the past 1 year. The primary factor behind the change was an decrease in Margin Expansion from -7.93 to -197.94.
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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FAQ
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