ALIT Valuation

Alight Inc

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3.900

+0.24(6.557%)1D

Overview
Forecast
Valuation
Earnings

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 5.79 is considered Undervalued compared with the five-year average of 13.28. The fair price of Alight Inc (ALIT) is between 8.07 to 11.28 according to relative valuation methord. Compared to the current price of 3.90 USD , Alight Inc is Undervalued By 51.67%.

Relative Value

Fair Zone

8.07-11.28

Current Price：3.90

51.67%

Undervalued

5.79

Trailing

Forward

5.96

EV/EBITDA

Alight Inc. (ALIT) has a current EV/EBITDA of 5.96. The 5-year average EV/EBITDA is 10.34. The thresholds are as follows: Strongly Undervalued below 6.75, Undervalued between 6.75 and 8.55, Fairly Valued between 12.13 and 8.55, Overvalued between 12.13 and 13.92, and Strongly Overvalued above 13.92. The current Forward EV/EBITDA of 5.96 falls within the Strongly Undervalued range.

57.11

EV/EBIT

Alight Inc. (ALIT) has a current EV/EBIT of 57.11. The 5-year average EV/EBIT is 20.00. The thresholds are as follows: Strongly Undervalued below -399.15, Undervalued between -399.15 and -189.57, Fairly Valued between 229.58 and -189.57, Overvalued between 229.58 and 439.16, and Strongly Overvalued above 439.16. The current Forward EV/EBIT of 57.11 falls within the Historic Trend Line -Fairly Valued range.

0.82

Alight Inc. (ALIT) has a current PS of 0.82. The 5-year average PS is 1.38. The thresholds are as follows: Strongly Undervalued below 0.82, Undervalued between 0.82 and 1.10, Fairly Valued between 1.66 and 1.10, Overvalued between 1.66 and 1.94, and Strongly Overvalued above 1.94. The current Forward PS of 0.82 falls within the Undervalued range.

5.00

P/OCF

Alight Inc. (ALIT) has a current P/OCF of 5.00. The 5-year average P/OCF is 7.43. The thresholds are as follows: Strongly Undervalued below -1.54, Undervalued between -1.54 and 2.94, Fairly Valued between 11.91 and 2.94, Overvalued between 11.91 and 16.39, and Strongly Overvalued above 16.39. The current Forward P/OCF of 5.00 falls within the Historic Trend Line -Fairly Valued range.

7.03

P/FCF

Alight Inc. (ALIT) has a current P/FCF of 7.03. The 5-year average P/FCF is 9.91. The thresholds are as follows: Strongly Undervalued below -3.88, Undervalued between -3.88 and 3.02, Fairly Valued between 16.81 and 3.02, Overvalued between 16.81 and 23.70, and Strongly Overvalued above 23.70. The current Forward P/FCF of 7.03 falls within the Historic Trend Line -Fairly Valued range.

Alight Inc (ALIT) has a current Price-to-Book (P/B) ratio of 0.62. Compared to its 3-year average P/B ratio of 0.89 , the current P/B ratio is approximately -30.31% higher. Relative to its 5-year average P/B ratio of 0.87, the current P/B ratio is about -28.89% higher. Alight Inc (ALIT) has a Forward Free Cash Flow (FCF) yield of approximately 7.34%. Compared to its 3-year average FCF yield of 4.30%, the current FCF yield is approximately 70.66% lower. Relative to its 5-year average FCF yield of 3.38% , the current FCF yield is about 116.90% lower.

0.62

P/B

Median3y

0.89

Median5y

0.87

7.34

FCF Yield

Median3y

4.30

Median5y

3.38

Competitors Valuation Multiple

The average P/S ratio for ALIT's competitors is 2.58, providing a benchmark for relative valuation. Alight Inc Corp (ALIT) exhibits a P/S ratio of 0.82, which is -68.14% above the industry average. Given its robust revenue growth of -1.86%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Solaris Energy Infrastructure Inc

Voyager Technologies Inc

Performance Decomposition

Market capitalization of ALIT decreased by 47.46% over the past 1 year. The primary factor behind the change was an decrease in Margin Expansion from -0.74 to -203.22.

The secondary factor is the Revenue Growth, contributed -1.86%to the performance.

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

-1.86%

538.00M → 528.00M

Revenue Growth

27362.16%

-0.74 → -203.22

Margin Expansion

-27407.76%

0.01 → -1.77

P/E Change

-47.46%