GMS Valuation

GMS Inc

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109.970

+0.01(0.009%)1D

Overview
Forecast
Valuation
Earnings

GMS Relative Valuation

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

Historical Valuation

GMS Inc (GMS) is now in the Overvalued zone, suggesting that its current forward PE ratio of 16.42 is considered Overvalued compared with the five-year average of 9.25. The fair price of GMS Inc (GMS) is between 63.91 to 92.47 according to relative valuation methord. Compared to the current price of 109.97 USD , GMS Inc is Overvalued By 18.92%.

Relative Value

Fair Zone

63.91-92.47

Current Price：109.97

18.92%

Overvalued

16.42

Trailing

Forward

11.43

EV/EBITDA

GMS Inc. (GMS) has a current EV/EBITDA of 11.43. The 5-year average EV/EBITDA is 7.30. The thresholds are as follows: Strongly Undervalued below 4.29, Undervalued between 4.29 and 5.80, Fairly Valued between 8.81 and 5.80, Overvalued between 8.81 and 10.32, and Strongly Overvalued above 10.32. The current Forward EV/EBITDA of 11.43 falls within the Strongly Overvalued range.

17.95

EV/EBIT

GMS Inc. (GMS) has a current EV/EBIT of 17.95. The 5-year average EV/EBIT is 10.63. The thresholds are as follows: Strongly Undervalued below 4.37, Undervalued between 4.37 and 7.50, Fairly Valued between 13.76 and 7.50, Overvalued between 13.76 and 16.89, and Strongly Overvalued above 16.89. The current Forward EV/EBIT of 17.95 falls within the Strongly Overvalued range.

0.75

GMS Inc. (GMS) has a current PS of 0.75. The 5-year average PS is 0.51. The thresholds are as follows: Strongly Undervalued below 0.31, Undervalued between 0.31 and 0.41, Fairly Valued between 0.61 and 0.41, Overvalued between 0.61 and 0.71, and Strongly Overvalued above 0.71. The current Forward PS of 0.75 falls within the Strongly Overvalued range.

12.07

P/OCF

GMS Inc. (GMS) has a current P/OCF of 12.07. The 5-year average P/OCF is 8.13. The thresholds are as follows: Strongly Undervalued below 3.63, Undervalued between 3.63 and 5.88, Fairly Valued between 10.37 and 5.88, Overvalued between 10.37 and 12.62, and Strongly Overvalued above 12.62. The current Forward P/OCF of 12.07 falls within the Overvalued range.

13.91

P/FCF

GMS Inc. (GMS) has a current P/FCF of 13.91. The 5-year average P/FCF is 9.86. The thresholds are as follows: Strongly Undervalued below 2.52, Undervalued between 2.52 and 6.19, Fairly Valued between 13.53 and 6.19, Overvalued between 13.53 and 17.20, and Strongly Overvalued above 17.20. The current Forward P/FCF of 13.91 falls within the Overvalued range.

GMS Inc (GMS) has a current Price-to-Book (P/B) ratio of 2.88. Compared to its 3-year average P/B ratio of 2.22 , the current P/B ratio is approximately 30.06% higher. Relative to its 5-year average P/B ratio of 2.18, the current P/B ratio is about 32.12% higher. GMS Inc (GMS) has a Forward Free Cash Flow (FCF) yield of approximately 7.83%. Compared to its 3-year average FCF yield of 12.26%, the current FCF yield is approximately -36.16% lower. Relative to its 5-year average FCF yield of 10.63% , the current FCF yield is about -26.34% lower.

2.88

P/B

Median3y

2.22

Median5y

2.18

7.83

FCF Yield

Median3y

12.26

Median5y

10.63

Competitors Valuation Multiple

The average P/S ratio for GMS's competitors is , providing a benchmark for relative valuation. GMS Inc Corp (GMS) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of -2.36%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

MSC Industrial Direct Co Inc

Hillman Solutions Corp

Performance Decomposition

Market capitalization of GMS increased by 21.41% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 28.95 to 42.21.

The secondary factor is the Revenue Growth, contributed -2.36%to the performance.

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

-2.36%

1.45B → 1.41B

Revenue Growth

-22.03%

3.95 → 3.08

Margin Expansion

45.80%

28.95 → 42.21

P/E Change

21.41%