ASC Valuation

Ardmore Shipping Corp

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11.620

-0.08(-0.684%)1D

Overview
Forecast
Valuation
Earnings

ASC Relative Valuation

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

Historical Valuation

Ardmore Shipping Corp (ASC) is now in the Fair zone, suggesting that its current forward PS ratio of 2.45 is considered Fairly compared with the five-year average of 0.66. The fair price of Ardmore Shipping Corp (ASC) is between 6.12 to 12.26 according to relative valuation methord.

Relative Value

Fair Zone

6.12-12.26

Current Price：11.62

Fair

13.20

Trailing

Forward

5.43

EV/EBITDA

Ardmore Shipping Corp. (ASC) has a current EV/EBITDA of 5.43. The 5-year average EV/EBITDA is 7.22. The thresholds are as follows: Strongly Undervalued below -3.14, Undervalued between -3.14 and 2.04, Fairly Valued between 12.40 and 2.04, Overvalued between 12.40 and 17.58, and Strongly Overvalued above 17.58. The current Forward EV/EBITDA of 5.43 falls within the Historic Trend Line -Fairly Valued range.

12.08

EV/EBIT

Ardmore Shipping Corp. (ASC) has a current EV/EBIT of 12.08. The 5-year average EV/EBIT is 13.39. The thresholds are as follows: Strongly Undervalued below -45.51, Undervalued between -45.51 and -16.06, Fairly Valued between 42.84 and -16.06, Overvalued between 42.84 and 72.29, and Strongly Overvalued above 72.29. The current Forward EV/EBIT of 12.08 falls within the Historic Trend Line -Fairly Valued range.

2.45

Ardmore Shipping Corp. (ASC) has a current PS of 2.45. The 5-year average PS is 1.87. The thresholds are as follows: Strongly Undervalued below 0.25, Undervalued between 0.25 and 1.06, Fairly Valued between 2.68 and 1.06, Overvalued between 2.68 and 3.48, and Strongly Overvalued above 3.48. The current Forward PS of 2.45 falls within the Historic Trend Line -Fairly Valued range.

7.45

P/OCF

Ardmore Shipping Corp. (ASC) has a current P/OCF of 7.45. The 5-year average P/OCF is -6.04. The thresholds are as follows: Strongly Undervalued below -97.46, Undervalued between -97.46 and -51.75, Fairly Valued between 39.66 and -51.75, Overvalued between 39.66 and 85.37, and Strongly Overvalued above 85.37. The current Forward P/OCF of 7.45 falls within the Historic Trend Line -Fairly Valued range.

-9.08

P/FCF

Ardmore Shipping Corp. (ASC) has a current P/FCF of -9.08. The 5-year average P/FCF is 6.81. The thresholds are as follows: Strongly Undervalued below -9.36, Undervalued between -9.36 and -1.28, Fairly Valued between 14.89 and -1.28, Overvalued between 14.89 and 22.97, and Strongly Overvalued above 22.97. The current Forward P/FCF of -9.08 falls within the Undervalued range.

Ardmore Shipping Corp (ASC) has a current Price-to-Book (P/B) ratio of 0.76. Compared to its 3-year average P/B ratio of 1.09 , the current P/B ratio is approximately -29.52% higher. Relative to its 5-year average P/B ratio of 0.85, the current P/B ratio is about -10.00% higher. Ardmore Shipping Corp (ASC) has a Forward Free Cash Flow (FCF) yield of approximately 17.27%. Compared to its 3-year average FCF yield of 21.05%, the current FCF yield is approximately -17.94% lower. Relative to its 5-year average FCF yield of 15.24% , the current FCF yield is about 13.31% lower.

0.76

P/B

Median3y

1.09

Median5y

0.85

17.27

FCF Yield

Median3y

21.05

Median5y

15.24

Competitors Valuation Multiple

The average P/S ratio for ASC's competitors is 1.94, providing a benchmark for relative valuation. Ardmore Shipping Corp Corp (ASC) exhibits a P/S ratio of 2.45, which is 26.48% above the industry average. Given its robust revenue growth of -40.62%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

ASC.N

Ardmore Shipping Corp

Knot Offshore Partners LP

Nordic American Tankers Ltd

Performance Decomposition

Market capitalization of ASC decreased by 34.20% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 6.20 to 11.20.

The secondary factor is the Revenue Growth, contributed -40.62%to the performance.

Overall, the performance of ASC in the past 1 year is driven by P/E Change. Which is more unsustainable.

-40.62%

121.33M → 72.05M

Revenue Growth

-74.22%

51.67 → 13.32

Margin Expansion

80.64%

6.20 → 11.20

P/E Change

-34.20%