RBC Valuation

RBC Bearings Inc

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388.370

+3.35(0.870%)1D

Overview
Forecast
Valuation
Earnings

RBC Relative Valuation

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

Historical Valuation

RBC Bearings Inc (RBC) is now in the Fair zone, suggesting that its current forward PE ratio of 34.20 is considered Fairly compared with the five-year average of 33.48. The fair price of RBC Bearings Inc (RBC) is between 289.72 to 421.42 according to relative valuation methord.

Relative Value

Fair Zone

289.72-421.42

Current Price：388.37

Fair

34.20

Trailing

Forward

23.49

EV/EBITDA

RBC Bearings Inc. (RBC) has a current EV/EBITDA of 23.49. The 5-year average EV/EBITDA is 19.56. The thresholds are as follows: Strongly Undervalued below 11.13, Undervalued between 11.13 and 15.35, Fairly Valued between 23.77 and 15.35, Overvalued between 23.77 and 27.99, and Strongly Overvalued above 27.99. The current Forward EV/EBITDA of 23.49 falls within the Historic Trend Line -Fairly Valued range.

31.56

EV/EBIT

RBC Bearings Inc. (RBC) has a current EV/EBIT of 31.56. The 5-year average EV/EBIT is 26.36. The thresholds are as follows: Strongly Undervalued below 17.42, Undervalued between 17.42 and 21.89, Fairly Valued between 30.83 and 21.89, Overvalued between 30.83 and 35.30, and Strongly Overvalued above 35.30. The current Forward EV/EBIT of 31.56 falls within the Overvalued range.

6.85

RBC Bearings Inc. (RBC) has a current PS of 6.85. The 5-year average PS is 5.10. The thresholds are as follows: Strongly Undervalued below 2.71, Undervalued between 2.71 and 3.90, Fairly Valued between 6.30 and 3.90, Overvalued between 6.30 and 7.49, and Strongly Overvalued above 7.49. The current Forward PS of 6.85 falls within the Overvalued range.

30.68

P/OCF

RBC Bearings Inc. (RBC) has a current P/OCF of 30.68. The 5-year average P/OCF is 24.78. The thresholds are as follows: Strongly Undervalued below 12.07, Undervalued between 12.07 and 18.42, Fairly Valued between 31.13 and 18.42, Overvalued between 31.13 and 37.48, and Strongly Overvalued above 37.48. The current Forward P/OCF of 30.68 falls within the Historic Trend Line -Fairly Valued range.

32.70

P/FCF

RBC Bearings Inc. (RBC) has a current P/FCF of 32.70. The 5-year average P/FCF is 30.12. The thresholds are as follows: Strongly Undervalued below -0.90, Undervalued between -0.90 and 14.61, Fairly Valued between 45.62 and 14.61, Overvalued between 45.62 and 61.13, and Strongly Overvalued above 61.13. The current Forward P/FCF of 32.70 falls within the Historic Trend Line -Fairly Valued range.

RBC Bearings Inc (RBC) has a current Price-to-Book (P/B) ratio of 4.02. Compared to its 3-year average P/B ratio of 2.93 , the current P/B ratio is approximately 36.88% higher. Relative to its 5-year average P/B ratio of 3.01, the current P/B ratio is about 33.55% higher. RBC Bearings Inc (RBC) has a Forward Free Cash Flow (FCF) yield of approximately 2.00%. Compared to its 3-year average FCF yield of 2.68%, the current FCF yield is approximately -25.46% lower. Relative to its 5-year average FCF yield of 2.84% , the current FCF yield is about -29.64% lower.

4.02

P/B

Median3y

2.93

Median5y

3.01

2.00

FCF Yield

Median3y

2.68

Median5y

2.84

Competitors Valuation Multiple

The average P/S ratio for RBC's competitors is 60.46, providing a benchmark for relative valuation. RBC Bearings Inc Corp (RBC) exhibits a P/S ratio of 6.85, which is -88.66% above the industry average. Given its robust revenue growth of 5.80%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Mueller Industries Inc

Valmont Industries Inc

Gibraltar Industries Inc

Algoma Steel Group Inc

0.30

-37.49%

653.74M

Performance Decomposition

Market capitalization of RBC increased by 33.53% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 43.41 to 50.44.

The secondary factor is the Margin Expansion, contributed 11.55%to the performance.

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

5.80%

413.70M → 437.70M

Revenue Growth

11.55%

14.89 → 16.61

Margin Expansion

16.18%

43.41 → 50.44

P/E Change

33.53%