ARMK Valuation

Aramark

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40.050

+0.63(1.598%)1D

Overview
Forecast
Valuation
Earnings

ARMK Relative Valuation

ARMK'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, ARMK is overvalued; if below, it's undervalued.

Historical Valuation

Aramark (ARMK) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.00 is considered Undervalued compared with the five-year average of 16.11. The fair price of Aramark (ARMK) is between +Inf to +Inf according to relative valuation methord. Compared to the current price of 40.05 USD , Aramark is Undervalued By Fair.

Relative Value

Fair Zone

+Inf-+Inf

Current Price：40.05

Fair

Undervalued

17.95

Trailing

Forward

10.75

EV/EBITDA

Aramark. (ARMK) has a current EV/EBITDA of 10.75. The 5-year average EV/EBITDA is 12.79. The thresholds are as follows: Strongly Undervalued below 7.08, Undervalued between 7.08 and 9.94, Fairly Valued between 15.64 and 9.94, Overvalued between 15.64 and 18.50, and Strongly Overvalued above 18.50. The current Forward EV/EBITDA of 10.75 falls within the Historic Trend Line -Fairly Valued range.

14.69

EV/EBIT

Aramark. (ARMK) has a current EV/EBIT of 14.69. The 5-year average EV/EBIT is 20.46. The thresholds are as follows: Strongly Undervalued below 0.82, Undervalued between 0.82 and 10.64, Fairly Valued between 30.27 and 10.64, Overvalued between 30.27 and 40.09, and Strongly Overvalued above 40.09. The current Forward EV/EBIT of 14.69 falls within the Historic Trend Line -Fairly Valued range.

0.53

Aramark. (ARMK) has a current PS of 0.53. The 5-year average PS is 0.55. The thresholds are as follows: Strongly Undervalued below 0.38, Undervalued between 0.38 and 0.47, Fairly Valued between 0.64 and 0.47, Overvalued between 0.64 and 0.73, and Strongly Overvalued above 0.73. The current Forward PS of 0.53 falls within the Historic Trend Line -Fairly Valued range.

10.03

P/OCF

Aramark. (ARMK) has a current P/OCF of 10.03. The 5-year average P/OCF is 18.99. The thresholds are as follows: Strongly Undervalued below -43.61, Undervalued between -43.61 and -12.31, Fairly Valued between 50.29 and -12.31, Overvalued between 50.29 and 81.59, and Strongly Overvalued above 81.59. The current Forward P/OCF of 10.03 falls within the Historic Trend Line -Fairly Valued range.

29.04

P/FCF

Aramark. (ARMK) has a current P/FCF of 29.04. The 5-year average P/FCF is 9.26. The thresholds are as follows: Strongly Undervalued below -133.83, Undervalued between -133.83 and -62.28, Fairly Valued between 80.81 and -62.28, Overvalued between 80.81 and 152.36, and Strongly Overvalued above 152.36. The current Forward P/FCF of 29.04 falls within the Historic Trend Line -Fairly Valued range.

Aramark (ARMK) has a current Price-to-Book (P/B) ratio of 3.37. Compared to its 3-year average P/B ratio of 3.04 , the current P/B ratio is approximately 10.89% higher. Relative to its 5-year average P/B ratio of 3.13, the current P/B ratio is about 7.69% higher. Aramark (ARMK) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.56%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 1.52% , the current FCF yield is about -100.00% lower.

3.37

P/B

Median3y

3.04

Median5y

3.13

2.71

FCF Yield

Median3y

2.56

Median5y

1.52

Competitors Valuation Multiple

The average P/S ratio for ARMK's competitors is 3.43, providing a benchmark for relative valuation. Aramark Corp (ARMK) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 5.72%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Super Hi International Holding Ltd

Performance Decomposition

Market capitalization of ARMK increased by 9.34% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 1.33 to 1.56.

The secondary factor is the Revenue Growth, contributed 5.72%to the performance.

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

5.72%

4.38B → 4.63B

Revenue Growth

17.29%

1.33 → 1.56

Margin Expansion

-13.67%

33.74 → 29.13

P/E Change

9.34%