AROC Valuation

Archrock Inc

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25.650

+0.38(1.504%)1D

AROC Relative Valuation

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

Historical Valuation

Archrock Inc (AROC) is now in the Fair zone, suggesting that its current forward PE ratio of 14.78 is considered Fairly compared with the five-year average of 21.67. The fair price of Archrock Inc (AROC) is between 24.11 to 48.30 according to relative valuation methord.

Relative Value

Fair Zone

24.11-48.30

Current Price：25.65

Fair

14.78

Trailing

Forward

8.00

EV/EBITDA

Archrock Inc. (AROC) has a current EV/EBITDA of 8.00. The 5-year average EV/EBITDA is 8.22. The thresholds are as follows: Strongly Undervalued below 6.72, Undervalued between 6.72 and 7.47, Fairly Valued between 8.97 and 7.47, Overvalued between 8.97 and 9.73, and Strongly Overvalued above 9.73. The current Forward EV/EBITDA of 8.00 falls within the Historic Trend Line -Fairly Valued range.

11.65

EV/EBIT

Archrock Inc. (AROC) has a current EV/EBIT of 11.65. The 5-year average EV/EBIT is 10.64. The thresholds are as follows: Strongly Undervalued below -3.62, Undervalued between -3.62 and 3.51, Fairly Valued between 17.76 and 3.51, Overvalued between 17.76 and 24.89, and Strongly Overvalued above 24.89. The current Forward EV/EBIT of 11.65 falls within the Historic Trend Line -Fairly Valued range.

25.65

Archrock Inc. (AROC) has a current PS of 25.65. The 5-year average PS is 1.93. The thresholds are as follows: Strongly Undervalued below -1.89, Undervalued between -1.89 and 0.02, Fairly Valued between 3.84 and 0.02, Overvalued between 3.84 and 5.75, and Strongly Overvalued above 5.75. The current Forward PS of 25.65 falls within the Strongly Overvalued range.

6.55

P/OCF

Archrock Inc. (AROC) has a current P/OCF of 6.55. The 5-year average P/OCF is 4.69. The thresholds are as follows: Strongly Undervalued below -1.23, Undervalued between -1.23 and 1.73, Fairly Valued between 7.65 and 1.73, Overvalued between 7.65 and 10.61, and Strongly Overvalued above 10.61. The current Forward P/OCF of 6.55 falls within the Historic Trend Line -Fairly Valued range.

16.82

P/FCF

Archrock Inc. (AROC) has a current P/FCF of 16.82. The 5-year average P/FCF is 2.15. The thresholds are as follows: Strongly Undervalued below -109.24, Undervalued between -109.24 and -53.54, Fairly Valued between 57.85 and -53.54, Overvalued between 57.85 and 113.54, and Strongly Overvalued above 113.54. The current Forward P/FCF of 16.82 falls within the Historic Trend Line -Fairly Valued range.

Archrock Inc (AROC) has a current Price-to-Book (P/B) ratio of 3.16. Compared to its 3-year average P/B ratio of 2.81 , the current P/B ratio is approximately 12.50% higher. Relative to its 5-year average P/B ratio of 2.26, the current P/B ratio is about 39.78% higher. Archrock Inc (AROC) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of -0.42%, the current FCF yield is approximately -101.03% lower. Relative to its 5-year average FCF yield of 4.33% , the current FCF yield is about -99.90% lower.

3.16

P/B

Median3y

2.81

Median5y

2.26

0.00

FCF Yield

Median3y

-0.42

Median5y

4.33

Competitors Valuation Multiple

The average P/S ratio for AROC's competitors is 35.52, providing a benchmark for relative valuation. Archrock Inc Corp (AROC) exhibits a P/S ratio of 25.65, which is -27.78% above the industry average. Given its robust revenue growth of 30.90%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Weatherford International PLC

Kodiak Gas Services Inc

Performance Decomposition

Market capitalization of AROC increased by 0.12% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 12.84 to 18.63.

The secondary factor is the Revenue Growth, contributed 30.90%to the performance.

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

30.90%

292.16M → 382.43M

Revenue Growth

45.09%

12.84 → 18.63

Margin Expansion

-75.87%

70.67 → 17.05

P/E Change

0.12%