CODI Valuation

Compass Diversified Holdings

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7.340

-0.11(-1.477%)1D

Overview
Forecast
Valuation
Earnings

CODI Relative Valuation

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

Historical Valuation

Compass Diversified Holdings (CODI) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.22 is considered Undervalued compared with the five-year average of 50.90. The fair price of Compass Diversified Holdings (CODI) is between 31.55 to 39.78 according to relative valuation methord. Compared to the current price of 7.34 USD , Compass Diversified Holdings is Undervalued By 76.73%.

Relative Value

Fair Zone

31.55-39.78

Current Price：7.34

76.73%

Undervalued

3.05

Trailing

Forward

5.87

EV/EBITDA

Compass Diversified Holdings. (CODI) has a current EV/EBITDA of 5.87. The 5-year average EV/EBITDA is 9.05. The thresholds are as follows: Strongly Undervalued below 6.36, Undervalued between 6.36 and 7.71, Fairly Valued between 10.40 and 7.71, Overvalued between 10.40 and 11.75, and Strongly Overvalued above 11.75. The current Forward EV/EBITDA of 5.87 falls within the Strongly Undervalued range.

9.36

EV/EBIT

Compass Diversified Holdings. (CODI) has a current EV/EBIT of 9.36. The 5-year average EV/EBIT is 17.37. The thresholds are as follows: Strongly Undervalued below 10.19, Undervalued between 10.19 and 13.78, Fairly Valued between 20.96 and 13.78, Overvalued between 20.96 and 24.55, and Strongly Overvalued above 24.55. The current Forward EV/EBIT of 9.36 falls within the Strongly Undervalued range.

0.22

Compass Diversified Holdings. (CODI) has a current PS of 0.22. The 5-year average PS is 0.70. The thresholds are as follows: Strongly Undervalued below 0.38, Undervalued between 0.38 and 0.54, Fairly Valued between 0.86 and 0.54, Overvalued between 0.86 and 1.02, and Strongly Overvalued above 1.02. The current Forward PS of 0.22 falls within the Strongly Undervalued range.

2.89

P/OCF

Compass Diversified Holdings. (CODI) has a current P/OCF of 2.89. The 5-year average P/OCF is 5.14. The thresholds are as follows: Strongly Undervalued below -20.83, Undervalued between -20.83 and -7.85, Fairly Valued between 18.12 and -7.85, Overvalued between 18.12 and 31.10, and Strongly Overvalued above 31.10. The current Forward P/OCF of 2.89 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/FCF

Compass Diversified Holdings. (CODI) has a current P/FCF of 0.00. The 5-year average P/FCF is -389.90. The thresholds are as follows: Strongly Undervalued below -3862.38, Undervalued between -3862.38 and -2126.14, Fairly Valued between 1346.34 and -2126.14, Overvalued between 1346.34 and 3082.58, and Strongly Overvalued above 3082.58. The current Forward P/FCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

Compass Diversified Holdings (CODI) has a current Price-to-Book (P/B) ratio of 0.63. Compared to its 3-year average P/B ratio of 1.62 , the current P/B ratio is approximately -61.08% higher. Relative to its 5-year average P/B ratio of 1.78, the current P/B ratio is about -64.73% higher. Compass Diversified Holdings (CODI) has a Forward Free Cash Flow (FCF) yield of approximately -22.52%. Compared to its 3-year average FCF yield of -5.33%, the current FCF yield is approximately 322.77% lower. Relative to its 5-year average FCF yield of -0.52% , the current FCF yield is about 4244.83% lower.

0.63

P/B

Median3y

1.62

Median5y

1.78

-22.52

FCF Yield

Median3y

-5.33

Median5y

-0.52

Competitors Valuation Multiple

The average P/S ratio for CODI's competitors is 2.32, providing a benchmark for relative valuation. Compass Diversified Holdings Corp (CODI) exhibits a P/S ratio of 0.22, which is -90.29% above the industry average. Given its robust revenue growth of 15.98%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

CODI.N

Compass Diversified Holdings

Crescent Capital BDC Inc

Abacus Global Management Inc

Vinci Compass Investments Ltd

Diamond Hill Investment Group Inc

2.80

6.83%

391.17M

Performance Decomposition

Market capitalization of CODI decreased by 65.57% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -3.58 to -5.85.

The secondary factor is the Revenue Growth, contributed 15.98%to the performance.

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

15.98%

473.13M → 548.73M

Revenue Growth

-144.88%

-8.98 → 4.03

Margin Expansion

63.33%

-3.58 → -5.85

P/E Change

-65.57%