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 22.05 is considered Overvalued compared with the five-year average of 18.45. The fair price of Atmos Energy Corp (ATO) is between 141.10 to 161.08 according to relative valuation methord. Compared to the current price of 175.68 USD , Atmos Energy Corp is Overvalued By 9.06%.
Relative Value
Fair Zone
141.10-161.08
Current Price：175.68
9.06%
Overvalued
22.05
PE
1Y
3Y
5Y
Trailing
Forward
14.37
EV/EBITDA
Atmos Energy Corp. (ATO) has a current EV/EBITDA of 14.37. The 5-year average EV/EBITDA is 12.80. The thresholds are as follows: Strongly Undervalued below 10.68, Undervalued between 10.68 and 11.74, Fairly Valued between 13.86 and 11.74, Overvalued between 13.86 and 14.92, and Strongly Overvalued above 14.92. The current Forward EV/EBITDA of 14.37 falls within the Overvalued range.
21.63
EV/EBIT
Atmos Energy Corp. (ATO) has a current EV/EBIT of 21.63. The 5-year average EV/EBIT is 19.08. The thresholds are as follows: Strongly Undervalued below 15.80, Undervalued between 15.80 and 17.44, Fairly Valued between 20.72 and 17.44, Overvalued between 20.72 and 22.35, and Strongly Overvalued above 22.35. The current Forward EV/EBIT of 21.63 falls within the Overvalued range.
175.68
PS
Atmos Energy Corp. (ATO) has a current PS of 175.68. The 5-year average PS is 6.14. The thresholds are as follows: Strongly Undervalued below -32.63, Undervalued between -32.63 and -13.24, Fairly Valued between 25.52 and -13.24, Overvalued between 25.52 and 44.91, and Strongly Overvalued above 44.91. The current Forward PS of 175.68 falls within the Strongly Overvalued range.
11.93
P/OCF
Atmos Energy Corp. (ATO) has a current P/OCF of 11.93. The 5-year average P/OCF is 9.93. The thresholds are as follows: Strongly Undervalued below 6.04, Undervalued between 6.04 and 7.98, Fairly Valued between 11.87 and 7.98, Overvalued between 11.87 and 13.81, and Strongly Overvalued above 13.81. The current Forward P/OCF of 11.93 falls within the Overvalued range.
-17.08
P/FCF
Atmos Energy Corp. (ATO) has a current P/FCF of -17.08. The 5-year average P/FCF is -15.00. The thresholds are as follows: Strongly Undervalued below -24.49, Undervalued between -24.49 and -19.74, Fairly Valued between -10.25 and -19.74, Overvalued between -10.25 and -5.51, and Strongly Overvalued above -5.51. The current Forward P/FCF of -17.08 falls within the Historic Trend Line -Fairly Valued range.
Atmos Energy Corp (ATO) has a current Price-to-Book (P/B) ratio of 2.09. Compared to its 3-year average P/B ratio of 1.71 , the current P/B ratio is approximately 22.48% higher. Relative to its 5-year average P/B ratio of 1.70, the current P/B ratio is about 23.28% higher. Atmos Energy Corp (ATO) has a Forward Free Cash Flow (FCF) yield of approximately -0.05%. Compared to its 3-year average FCF yield of -3.00%, the current FCF yield is approximately -98.23% lower. Relative to its 5-year average FCF yield of -8.13% , the current FCF yield is about -99.35% lower.
2.09
P/B
Median3y
1.71
Median5y
1.70
-0.05
FCF Yield
Median3y
-3.00
Median5y
-8.13
Competitors Valuation Multiple
The average P/S ratio for ATO's competitors is 84.98, providing a benchmark for relative valuation. Atmos Energy Corp Corp (ATO) exhibits a P/S ratio of 175.68, which is 106.72% 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
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ATO increased by 16.77% 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 3.02%to the performance.
Overall, the performance of ATO in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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