MEG Valuation

Montrose Environmental Group Inc

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25.920

+0.71(2.816%)1D

MEG Relative Valuation

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

Historical Valuation

Montrose Environmental Group Inc (MEG) is now in the Fair zone, suggesting that its current forward PS ratio of 25.92 is considered Fairly compared with the five-year average of -1.20. The fair price of Montrose Environmental Group Inc (MEG) is between to according to relative valuation methord.

Relative Value

Fair Zone

Current Price：25.92

Fair

-78.55

Trailing

Forward

11.50

EV/EBITDA

Montrose Environmental Group Inc. (MEG) has a current EV/EBITDA of 11.50. The 5-year average EV/EBITDA is 18.16. The thresholds are as follows: Strongly Undervalued below 5.87, Undervalued between 5.87 and 12.01, Fairly Valued between 24.30 and 12.01, Overvalued between 24.30 and 30.45, and Strongly Overvalued above 30.45. The current Forward EV/EBITDA of 11.50 falls within the Undervalued range.

-418.64

EV/EBIT

Montrose Environmental Group Inc. (MEG) has a current EV/EBIT of -418.64. The 5-year average EV/EBIT is 2.04. The thresholds are as follows: Strongly Undervalued below -640.03, Undervalued between -640.03 and -318.99, Fairly Valued between 323.07 and -318.99, Overvalued between 323.07 and 644.11, and Strongly Overvalued above 644.11. The current Forward EV/EBIT of -418.64 falls within the Undervalued range.

25.92

Montrose Environmental Group Inc. (MEG) has a current PS of 25.92. The 5-year average PS is 2.17. The thresholds are as follows: Strongly Undervalued below -2.49, Undervalued between -2.49 and -0.16, Fairly Valued between 4.50 and -0.16, Overvalued between 4.50 and 6.83, and Strongly Overvalued above 6.83. The current Forward PS of 25.92 falls within the Strongly Overvalued range.

13.52

P/OCF

Montrose Environmental Group Inc. (MEG) has a current P/OCF of 13.52. The 5-year average P/OCF is 23.39. The thresholds are as follows: Strongly Undervalued below -1.69, Undervalued between -1.69 and 10.85, Fairly Valued between 35.93 and 10.85, Overvalued between 35.93 and 48.47, and Strongly Overvalued above 48.47. The current Forward P/OCF of 13.52 falls within the Historic Trend Line -Fairly Valued range.

20.36

P/FCF

Montrose Environmental Group Inc. (MEG) has a current P/FCF of 20.36. The 5-year average P/FCF is 45.08. The thresholds are as follows: Strongly Undervalued below -29.11, Undervalued between -29.11 and 7.98, Fairly Valued between 82.17 and 7.98, Overvalued between 82.17 and 119.26, and Strongly Overvalued above 119.26. The current Forward P/FCF of 20.36 falls within the Historic Trend Line -Fairly Valued range.

Montrose Environmental Group Inc (MEG) has a current Price-to-Book (P/B) ratio of 2.00. Compared to its 3-year average P/B ratio of 2.82 , the current P/B ratio is approximately -29.24% higher. Relative to its 5-year average P/B ratio of 4.58, the current P/B ratio is about -56.47% higher. Montrose Environmental Group Inc (MEG) has a Forward Free Cash Flow (FCF) yield of approximately 0.10%. Compared to its 3-year average FCF yield of 1.68%, the current FCF yield is approximately -94.31% lower. Relative to its 5-year average FCF yield of 1.32% , the current FCF yield is about -92.78% lower.

2.00

P/B

Median3y

2.82

Median5y

4.58

0.10

FCF Yield

Median3y

1.68

Median5y

1.32

Competitors Valuation Multiple

The average P/S ratio for MEG's competitors is 10.06, providing a benchmark for relative valuation. Montrose Environmental Group Inc Corp (MEG) exhibits a P/S ratio of 25.92, which is 157.74% above the industry average. Given its robust revenue growth of 25.86%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

MEG.N

Montrose Environmental Group Inc

Performance Decomposition

Market capitalization of MEG increased by 37.73% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -11.82 to -32.50.

The secondary factor is the Revenue Growth, contributed 25.86%to the performance.

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

25.86%

178.69M → 224.89M

Revenue Growth

-163.11%

-5.91 → 3.73

Margin Expansion

174.98%

-11.82 → -32.50

P/E Change

37.73%