COMM Valuation

CommScope Holding Company Inc

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15.500

+0.43(2.853%)1D

Overview
Forecast
Valuation
Earnings

COMM Relative Valuation

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

Historical Valuation

CommScope Holding Company Inc (COMM) is now in the Fair zone, suggesting that its current forward PE ratio of 10.43 is considered Fairly compared with the five-year average of 6.93. The fair price of CommScope Holding Company Inc (COMM) is between 11.57 to 19.96 according to relative valuation methord.

Relative Value

Fair Zone

11.57-19.96

Current Price：15.50

Fair

10.43

Trailing

Forward

8.76

EV/EBITDA

CommScope Holding Company Inc. (COMM) has a current EV/EBITDA of 8.76. The 5-year average EV/EBITDA is 10.55. The thresholds are as follows: Strongly Undervalued below 7.38, Undervalued between 7.38 and 8.97, Fairly Valued between 12.14 and 8.97, Overvalued between 12.14 and 13.73, and Strongly Overvalued above 13.73. The current Forward EV/EBITDA of 8.76 falls within the Undervalued range.

11.16

EV/EBIT

CommScope Holding Company Inc. (COMM) has a current EV/EBIT of 11.16. The 5-year average EV/EBIT is 12.09. The thresholds are as follows: Strongly Undervalued below 8.39, Undervalued between 8.39 and 10.24, Fairly Valued between 13.93 and 10.24, Overvalued between 13.93 and 15.78, and Strongly Overvalued above 15.78. The current Forward EV/EBIT of 11.16 falls within the Historic Trend Line -Fairly Valued range.

0.82

CommScope Holding Company Inc. (COMM) has a current PS of 0.82. The 5-year average PS is 0.22. The thresholds are as follows: Strongly Undervalued below -0.02, Undervalued between -0.02 and 0.10, Fairly Valued between 0.34 and 0.10, Overvalued between 0.34 and 0.46, and Strongly Overvalued above 0.46. The current Forward PS of 0.82 falls within the Strongly Overvalued range.

19.51

P/OCF

CommScope Holding Company Inc. (COMM) has a current P/OCF of 19.51. The 5-year average P/OCF is -7.49. The thresholds are as follows: Strongly Undervalued below -137.22, Undervalued between -137.22 and -72.36, Fairly Valued between 57.38 and -72.36, Overvalued between 57.38 and 122.25, and Strongly Overvalued above 122.25. The current Forward P/OCF of 19.51 falls within the Historic Trend Line -Fairly Valued range.

6.38

P/FCF

CommScope Holding Company Inc. (COMM) has a current P/FCF of 6.38. The 5-year average P/FCF is 4.50. The thresholds are as follows: Strongly Undervalued below -4.02, Undervalued between -4.02 and 0.24, Fairly Valued between 8.76 and 0.24, Overvalued between 8.76 and 13.02, and Strongly Overvalued above 13.02. The current Forward P/FCF of 6.38 falls within the Historic Trend Line -Fairly Valued range.

CommScope Holding Company Inc (COMM) has a current Price-to-Book (P/B) ratio of -1.41. Compared to its 3-year average P/B ratio of -0.89 , the current P/B ratio is approximately 58.85% higher. Relative to its 5-year average P/B ratio of 1.72, the current P/B ratio is about -181.85% higher. CommScope Holding Company Inc (COMM) has a Forward Free Cash Flow (FCF) yield of approximately 7.23%. Compared to its 3-year average FCF yield of 26.25%, the current FCF yield is approximately -72.47% lower. Relative to its 5-year average FCF yield of 19.56% , the current FCF yield is about -63.05% lower.

-1.41

P/B

Median3y

-0.89

Median5y

1.72

7.23

FCF Yield

Median3y

26.25

Median5y

19.56

Competitors Valuation Multiple

The average P/S ratio for COMM's competitors is 6.80, providing a benchmark for relative valuation. CommScope Holding Company Inc Corp (COMM) exhibits a P/S ratio of 0.82, which is -88.01% above the industry average. Given its robust revenue growth of 31.75%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

COMM.O

CommScope Holding Company Inc

Arlo Technologies Inc

Digi International Inc

Performance Decomposition

Market capitalization of COMM increased by 301.55% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 7.29 to 37.17.

The secondary factor is the Revenue Growth, contributed 31.75%to the performance.

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

31.75%

1.05B → 1.39B

Revenue Growth

-139.77%

-5.33 → 2.12

Margin Expansion

409.57%

7.29 → 37.17

P/E Change

301.55%