CTS Valuation

CTS Corp

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40.920

-0.05(-0.122%)1D

Overview
Forecast
Valuation
Earnings

CTS Relative Valuation

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

Historical Valuation

CTS Corp (CTS) is now in the Undervalued zone, suggesting that its current forward PE ratio of 17.14 is considered Undervalued compared with the five-year average of 19.00. The fair price of CTS Corp (CTS) is between 53.70 to 63.93 according to relative valuation methord. Compared to the current price of 40.92 USD , CTS Corp is Undervalued By 23.8%.

Relative Value

Fair Zone

53.70-63.93

Current Price：40.92

23.8%

Undervalued

17.14

Trailing

Forward

9.62

EV/EBITDA

CTS Corp. (CTS) has a current EV/EBITDA of 9.62. The 5-year average EV/EBITDA is 10.60. The thresholds are as follows: Strongly Undervalued below 7.82, Undervalued between 7.82 and 9.21, Fairly Valued between 11.99 and 9.21, Overvalued between 11.99 and 13.38, and Strongly Overvalued above 13.38. The current Forward EV/EBITDA of 9.62 falls within the Historic Trend Line -Fairly Valued range.

13.36

EV/EBIT

CTS Corp. (CTS) has a current EV/EBIT of 13.36. The 5-year average EV/EBIT is 14.05. The thresholds are as follows: Strongly Undervalued below 9.88, Undervalued between 9.88 and 11.96, Fairly Valued between 16.13 and 11.96, Overvalued between 16.13 and 18.22, and Strongly Overvalued above 18.22. The current Forward EV/EBIT of 13.36 falls within the Historic Trend Line -Fairly Valued range.

2.22

CTS Corp. (CTS) has a current PS of 2.22. The 5-year average PS is 2.31. The thresholds are as follows: Strongly Undervalued below 1.68, Undervalued between 1.68 and 2.00, Fairly Valued between 2.62 and 2.00, Overvalued between 2.62 and 2.93, and Strongly Overvalued above 2.93. The current Forward PS of 2.22 falls within the Historic Trend Line -Fairly Valued range.

12.41

P/OCF

CTS Corp. (CTS) has a current P/OCF of 12.41. The 5-year average P/OCF is 14.49. The thresholds are as follows: Strongly Undervalued below 10.25, Undervalued between 10.25 and 12.37, Fairly Valued between 16.60 and 12.37, Overvalued between 16.60 and 18.72, and Strongly Overvalued above 18.72. The current Forward P/OCF of 12.41 falls within the Historic Trend Line -Fairly Valued range.

15.94

P/FCF

CTS Corp. (CTS) has a current P/FCF of 15.94. The 5-year average P/FCF is 19.53. The thresholds are as follows: Strongly Undervalued below 11.68, Undervalued between 11.68 and 15.60, Fairly Valued between 23.45 and 15.60, Overvalued between 23.45 and 27.38, and Strongly Overvalued above 27.38. The current Forward P/FCF of 15.94 falls within the Historic Trend Line -Fairly Valued range.

CTS Corp (CTS) has a current Price-to-Book (P/B) ratio of 2.20. Compared to its 3-year average P/B ratio of 2.65 , the current P/B ratio is approximately -17.01% higher. Relative to its 5-year average P/B ratio of 2.55, the current P/B ratio is about -13.80% higher. CTS Corp (CTS) has a Forward Free Cash Flow (FCF) yield of approximately 7.14%. Compared to its 3-year average FCF yield of 6.13%, the current FCF yield is approximately 16.52% lower. Relative to its 5-year average FCF yield of 6.20% , the current FCF yield is about 15.28% lower.

2.20

P/B

Median3y

2.65

Median5y

2.55

7.14

FCF Yield

Median3y

6.13

Median5y

6.20

Competitors Valuation Multiple

The average P/S ratio for CTS's competitors is 2.69, providing a benchmark for relative valuation. CTS Corp Corp (CTS) exhibits a P/S ratio of 2.22, which is -17.43% above the industry average. Given its robust revenue growth of 3.95%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Benchmark Electronics Inc

Veeco Instruments Inc

Kimball Electronics Inc

Performance Decomposition

Market capitalization of CTS decreased by 16.68% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 11.30 to 13.69.

The secondary factor is the Revenue Growth, contributed 3.95%to the performance.

Overall, the performance of CTS in the past 1 year is driven by Margin Expansion. Which is more sustainable.

3.95%

130.16M → 135.31M

Revenue Growth

21.15%

11.30 → 13.69

Margin Expansion

-41.78%

33.34 → 19.41

P/E Change

-16.68%