MEG Valuation

Montrose Environmental Group Inc

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22.610

-0.11(-0.484%)1D

Overview
Forecast
Valuation
Earnings

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 Undervalued zone, suggesting that its current forward PS ratio of 0.92 is considered Undervalued compared with the five-year average of -20.03. The fair price of Montrose Environmental Group Inc (MEG) is between 27.48 to 62.20 according to relative valuation methord. Compared to the current price of 22.41 USD , Montrose Environmental Group Inc is Undervalued By 18.47%.

Relative Value

Fair Zone

27.48-62.20

Current Price：22.41

18.47%

Undervalued

-33.75

Trailing

Forward

10.16

EV/EBITDA

Montrose Environmental Group Inc. (MEG) has a current EV/EBITDA of 10.16. The 5-year average EV/EBITDA is 18.33. The thresholds are as follows: Strongly Undervalued below 6.31, Undervalued between 6.31 and 12.32, Fairly Valued between 24.34 and 12.32, Overvalued between 24.34 and 30.35, and Strongly Overvalued above 30.35. The current Forward EV/EBITDA of 10.16 falls within the Undervalued range.

-77.68

EV/EBIT

Montrose Environmental Group Inc. (MEG) has a current EV/EBIT of -77.68. The 5-year average EV/EBIT is 32.15. The thresholds are as follows: Strongly Undervalued below -576.64, Undervalued between -576.64 and -272.24, Fairly Valued between 336.55 and -272.24, Overvalued between 336.55 and 640.95, and Strongly Overvalued above 640.95. The current Forward EV/EBIT of -77.68 falls within the Historic Trend Line -Fairly Valued range.

0.95

Montrose Environmental Group Inc. (MEG) has a current PS of 0.95. The 5-year average PS is 2.00. The thresholds are as follows: Strongly Undervalued below 0.23, Undervalued between 0.23 and 1.11, Fairly Valued between 2.89 and 1.11, Overvalued between 2.89 and 3.78, and Strongly Overvalued above 3.78. The current Forward PS of 0.95 falls within the Undervalued range.

13.18

P/OCF

Montrose Environmental Group Inc. (MEG) has a current P/OCF of 13.18. The 5-year average P/OCF is 23.40. The thresholds are as follows: Strongly Undervalued below -1.31, Undervalued between -1.31 and 11.04, Fairly Valued between 35.76 and 11.04, Overvalued between 35.76 and 48.11, and Strongly Overvalued above 48.11. The current Forward P/OCF of 13.18 falls within the Historic Trend Line -Fairly Valued range.

23.68

P/FCF

Montrose Environmental Group Inc. (MEG) has a current P/FCF of 23.68. The 5-year average P/FCF is 44.80. The thresholds are as follows: Strongly Undervalued below -28.99, Undervalued between -28.99 and 7.90, Fairly Valued between 81.69 and 7.90, Overvalued between 81.69 and 118.59, and Strongly Overvalued above 118.59. The current Forward P/FCF of 23.68 falls within the Historic Trend Line -Fairly Valued range.

Montrose Environmental Group Inc (MEG) has a current Price-to-Book (P/B) ratio of 1.68. Compared to its 3-year average P/B ratio of 2.97 , the current P/B ratio is approximately -43.43% higher. Relative to its 5-year average P/B ratio of 4.39, the current P/B ratio is about -61.69% higher. Montrose Environmental Group Inc (MEG) has a Forward Free Cash Flow (FCF) yield of approximately 4.62%. Compared to its 3-year average FCF yield of 1.21%, the current FCF yield is approximately 281.41% lower. Relative to its 5-year average FCF yield of 0.88% , the current FCF yield is about 422.83% lower.

1.80

P/B

Median3y

2.97

Median5y

4.39

4.47

FCF Yield

Median3y

1.21

Median5y

0.88

Competitors Valuation Multiple

The average P/S ratio for MEG's competitors is 0.82, providing a benchmark for relative valuation. Montrose Environmental Group Inc Corp (MEG) exhibits a P/S ratio of 0.92, which is 11.60% above the industry average. Given its robust revenue growth of 14.49%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

MEG.N

Montrose Environmental Group Inc

Lincoln Educational Services Corp

Performance Decomposition

Market capitalization of MEG decreased by 31.28% over the past 1 year. The primary factor behind the change was an decrease in Margin Expansion from -8.60 to -10.89.

The secondary factor is the Revenue Growth, contributed 14.49%to the performance.

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

14.49%

155.33M → 177.83M

Revenue Growth

26.63%

-8.60 → -10.89

Margin Expansion

-72.40%

-35.38 → -9.77

P/E Change

-31.28%