ATO Valuation

Atmos Energy Corp

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165.220

-0.24(-0.145%)1D

Overview
Forecast
Valuation
Earnings

ATO Relative Valuation

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

Historical Valuation

Atmos Energy Corp (ATO) is now in the Overvalued zone, suggesting that its current forward PE ratio of 21.31 is considered Overvalued compared with the five-year average of 18.34. The fair price of Atmos Energy Corp (ATO) is between 138.22 to 155.69 according to relative valuation methord. Compared to the current price of 165.46 USD , Atmos Energy Corp is Overvalued By 6.27%.

Relative Value

Fair Zone

138.22-155.69

Current Price：165.46

6.27%

Overvalued

21.31

Trailing

Forward

14.23

EV/EBITDA

Atmos Energy Corp. (ATO) has a current EV/EBITDA of 14.23. The 5-year average EV/EBITDA is 12.72. The thresholds are as follows: Strongly Undervalued below 10.64, Undervalued between 10.64 and 11.68, Fairly Valued between 13.76 and 11.68, Overvalued between 13.76 and 14.80, and Strongly Overvalued above 14.80. The current Forward EV/EBITDA of 14.23 falls within the Overvalued range.

19.34

EV/EBIT

Atmos Energy Corp. (ATO) has a current EV/EBIT of 19.34. The 5-year average EV/EBIT is 19.01. The thresholds are as follows: Strongly Undervalued below 15.75, Undervalued between 15.75 and 17.38, Fairly Valued between 20.63 and 17.38, Overvalued between 20.63 and 22.26, and Strongly Overvalued above 22.26. The current Forward EV/EBIT of 19.34 falls within the Historic Trend Line -Fairly Valued range.

5.85

Atmos Energy Corp. (ATO) has a current PS of 5.85. The 5-year average PS is 3.87. The thresholds are as follows: Strongly Undervalued below 2.40, Undervalued between 2.40 and 3.13, Fairly Valued between 4.60 and 3.13, Overvalued between 4.60 and 5.34, and Strongly Overvalued above 5.34. The current Forward PS of 5.85 falls within the Strongly Overvalued range.

11.25

P/OCF

Atmos Energy Corp. (ATO) has a current P/OCF of 11.25. The 5-year average P/OCF is 9.89. The thresholds are as follows: Strongly Undervalued below 6.07, Undervalued between 6.07 and 7.98, Fairly Valued between 11.79 and 7.98, Overvalued between 11.79 and 13.70, and Strongly Overvalued above 13.70. The current Forward P/OCF of 11.25 falls within the Historic Trend Line -Fairly Valued range.

-16.90

P/FCF

Atmos Energy Corp. (ATO) has a current P/FCF of -16.90. The 5-year average P/FCF is -14.61. The thresholds are as follows: Strongly Undervalued below -24.50, Undervalued between -24.50 and -19.55, Fairly Valued between -9.66 and -19.55, Overvalued between -9.66 and -4.71, and Strongly Overvalued above -4.71. The current Forward P/FCF of -16.90 falls within the Historic Trend Line -Fairly Valued range.

Atmos Energy Corp (ATO) has a current Price-to-Book (P/B) ratio of 1.98. Compared to its 3-year average P/B ratio of 1.68 , the current P/B ratio is approximately 18.27% higher. Relative to its 5-year average P/B ratio of 1.69, the current P/B ratio is about 17.63% higher. Atmos Energy Corp (ATO) has a Forward Free Cash Flow (FCF) yield of approximately -5.15%. Compared to its 3-year average FCF yield of -3.32%, the current FCF yield is approximately 55.23% lower. Relative to its 5-year average FCF yield of -8.23% , the current FCF yield is about -37.38% lower.

1.98

P/B

Median3y

1.68

Median5y

1.69

-5.17

FCF Yield

Median3y

-3.32

Median5y

-8.23

Competitors Valuation Multiple

The average P/S ratio for ATO's competitors is 2.43, providing a benchmark for relative valuation. Atmos Energy Corp Corp (ATO) exhibits a P/S ratio of 5.85, which is 140.49% above the industry average. Given its robust revenue growth of 19.56%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Cheniere Energy Partners LP

Brookfield Infrastructure Corp

1.24

-4.63%

5.20B

Performance Decomposition

Market capitalization of ATO increased by 20.68% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 701.55M to 838.77M.

The secondary factor is the P/E Change, contributed 6.93%to the performance.

Overall, the performance of ATO in the past 1 year is driven by Revenue Growth. Which is more sustainable.

19.56%

701.55M → 838.77M

Revenue Growth

-5.81%

23.60 → 22.23

Margin Expansion

6.93%

21.26 → 22.73

P/E Change

20.68%