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AROC Valuation

Archrock Inc
$
23.650
+0.36(1.546%)1D
  • Overview
  • Forecast
  • Valuation
  • Earnings

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 14.83 is considered Fairly compared with the five-year average of 20.71. The fair price of Archrock Inc (AROC) is between 17.09 to 47.81 according to relative valuation methord.
Relative Value
Fair Zone
17.09-47.81
Current Price:23.65
Fair
14.83
PE
1Y
3Y
5Y
Trailing
Forward
7.75
EV/EBITDA
Archrock Inc. (AROC) has a current EV/EBITDA of 7.75. The 5-year average EV/EBITDA is 8.20. The thresholds are as follows: Strongly Undervalued below 6.69, Undervalued between 6.69 and 7.45, Fairly Valued between 8.96 and 7.45, Overvalued between 8.96 and 9.71, and Strongly Overvalued above 9.71. The current Forward EV/EBITDA of 7.75 falls within the Historic Trend Line -Fairly Valued range.
11.47
EV/EBIT
Archrock Inc. (AROC) has a current EV/EBIT of 11.47. The 5-year average EV/EBIT is 10.92. The thresholds are as follows: Strongly Undervalued below -3.52, Undervalued between -3.52 and 3.70, Fairly Valued between 18.15 and 3.70, Overvalued between 18.15 and 25.37, and Strongly Overvalued above 25.37. The current Forward EV/EBIT of 11.47 falls within the Historic Trend Line -Fairly Valued range.
2.71
PS
Archrock Inc. (AROC) has a current PS of 2.71. The 5-year average PS is 1.74. The thresholds are as follows: Strongly Undervalued below -0.19, Undervalued between -0.19 and 0.78, Fairly Valued between 2.71 and 0.78, Overvalued between 2.71 and 3.68, and Strongly Overvalued above 3.68. The current Forward PS of 2.71 falls within the Historic Trend Line -Fairly Valued range.
6.77
P/OCF
Archrock Inc. (AROC) has a current P/OCF of 6.77. The 5-year average P/OCF is 4.56. The thresholds are as follows: Strongly Undervalued below -1.29, Undervalued between -1.29 and 1.64, Fairly Valued between 7.49 and 1.64, Overvalued between 7.49 and 10.42, and Strongly Overvalued above 10.42. The current Forward P/OCF of 6.77 falls within the Historic Trend Line -Fairly Valued range.
-17.52
P/FCF
Archrock Inc. (AROC) has a current P/FCF of -17.52. The 5-year average P/FCF is 1.49. The thresholds are as follows: Strongly Undervalued below -109.02, Undervalued between -109.02 and -53.76, Fairly Valued between 56.75 and -53.76, Overvalued between 56.75 and 112.01, and Strongly Overvalued above 112.01. The current Forward P/FCF of -17.52 falls within the Historic Trend Line -Fairly Valued range.
Archrock Inc (AROC) has a current Price-to-Book (P/B) ratio of 3.03. Compared to its 3-year average P/B ratio of 2.65 , the current P/B ratio is approximately 14.11% higher. Relative to its 5-year average P/B ratio of 2.15, the current P/B ratio is about 40.64% higher. Archrock Inc (AROC) has a Forward Free Cash Flow (FCF) yield of approximately -0.48%. Compared to its 3-year average FCF yield of -0.30%, the current FCF yield is approximately 60.32% lower. Relative to its 5-year average FCF yield of 4.73% , the current FCF yield is about -110.21% lower.
3.03
P/B
Median3y
2.65
Median5y
2.15
-0.48
FCF Yield
Median3y
-0.30
Median5y
4.73

Competitors Valuation Multiple

The average P/S ratio for AROC's competitors is 2.00, providing a benchmark for relative valuation. Archrock Inc Corp (AROC) exhibits a P/S ratio of 2.71, which is 35.23% above the industry average. Given its robust revenue growth of 29.30%, this premium appears sustainable.

Performance Decomposition

1Y
3Y
5Y
Market capitalization of AROC increased by 16.14% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 15.10 to 20.41.
The secondary factor is the Revenue Growth, contributed 29.30%to the performance.
Overall, the performance of AROC in the past 1 year is driven by Margin Expansion. Which is more sustainable.
29.30%
268.49M → 347.16M
Revenue Growth
+
35.17%
15.10 → 20.41
Margin Expansion
+
-48.33%
37.71 → 19.48
P/E Change
=
16.14%
20.36 → 23.65
Mkt Cap Growth

FAQ

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Is Archrock Inc (AROC) currently overvalued or undervalued?

Archrock Inc (AROC) is now in the Fair zone, suggesting that its current forward PE ratio of 14.83 is considered Fairly compared with the five-year average of 20.71. The fair price of Archrock Inc (AROC) is between 17.09 to 47.81 according to relative valuation methord.
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What is Archrock Inc (AROC) fair value?

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How does AROC's valuation metrics compare to the industry average?

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What is the current P/B ratio for Archrock Inc (AROC) as of Jul 30 2025?

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What is the current FCF Yield for Archrock Inc (AROC) as of Jul 30 2025?

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What is the current Forward P/E ratio for Archrock Inc (AROC) as of Jul 30 2025?

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What is the current Forward P/S ratio for Archrock Inc (AROC) as of Jul 30 2025?