REZI Valuation

Resideo Technologies Inc

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28.520

+3.97(16.171%)1D

Overview
Forecast
Valuation
Earnings

REZI Relative Valuation

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

Historical Valuation

Resideo Technologies Inc (REZI) is now in the Fair zone, suggesting that its current forward PE ratio of 13.73 is considered Fairly compared with the five-year average of 11.69. The fair price of Resideo Technologies Inc (REZI) is between 17.32 to 26.55 according to relative valuation methord.

Relative Value

Fair Zone

17.32-26.55

Current Price：24.55

Fair

13.73

Trailing

Forward

7.68

EV/EBITDA

Resideo Technologies Inc. (REZI) has a current EV/EBITDA of 7.68. The 5-year average EV/EBITDA is 6.26. The thresholds are as follows: Strongly Undervalued below 4.35, Undervalued between 4.35 and 5.31, Fairly Valued between 7.22 and 5.31, Overvalued between 7.22 and 8.17, and Strongly Overvalued above 8.17. The current Forward EV/EBITDA of 7.68 falls within the Overvalued range.

8.44

EV/EBIT

Resideo Technologies Inc. (REZI) has a current EV/EBIT of 8.44. The 5-year average EV/EBIT is 7.23. The thresholds are as follows: Strongly Undervalued below 4.64, Undervalued between 4.64 and 5.94, Fairly Valued between 8.53 and 5.94, Overvalued between 8.53 and 9.83, and Strongly Overvalued above 9.83. The current Forward EV/EBIT of 8.44 falls within the Historic Trend Line -Fairly Valued range.

0.49

Resideo Technologies Inc. (REZI) has a current PS of 0.49. The 5-year average PS is 0.48. The thresholds are as follows: Strongly Undervalued below 0.24, Undervalued between 0.24 and 0.36, Fairly Valued between 0.60 and 0.36, Overvalued between 0.60 and 0.73, and Strongly Overvalued above 0.73. The current Forward PS of 0.49 falls within the Historic Trend Line -Fairly Valued range.

9.10

P/OCF

Resideo Technologies Inc. (REZI) has a current P/OCF of 9.10. The 5-year average P/OCF is 9.22. The thresholds are as follows: Strongly Undervalued below 2.16, Undervalued between 2.16 and 5.69, Fairly Valued between 12.75 and 5.69, Overvalued between 12.75 and 16.28, and Strongly Overvalued above 16.28. The current Forward P/OCF of 9.10 falls within the Historic Trend Line -Fairly Valued range.

14.15

P/FCF

Resideo Technologies Inc. (REZI) has a current P/FCF of 14.15. The 5-year average P/FCF is 13.65. The thresholds are as follows: Strongly Undervalued below 0.12, Undervalued between 0.12 and 6.88, Fairly Valued between 20.41 and 6.88, Overvalued between 20.41 and 27.17, and Strongly Overvalued above 27.17. The current Forward P/FCF of 14.15 falls within the Historic Trend Line -Fairly Valued range.

Resideo Technologies Inc (REZI) has a current Price-to-Book (P/B) ratio of 1.27. Compared to its 3-year average P/B ratio of 1.06 , the current P/B ratio is approximately 20.54% higher. Relative to its 5-year average P/B ratio of 1.29, the current P/B ratio is about -1.21% higher. Resideo Technologies Inc (REZI) has a Forward Free Cash Flow (FCF) yield of approximately 7.78%. Compared to its 3-year average FCF yield of 8.39%, the current FCF yield is approximately -7.35% lower. Relative to its 5-year average FCF yield of 7.27% , the current FCF yield is about 7.03% lower.

1.27

P/B

Median3y

1.06

Median5y

1.29

7.78

FCF Yield

Median3y

8.39

Median5y

7.27

Competitors Valuation Multiple

The average P/S ratio for REZI's competitors is 0.38, providing a benchmark for relative valuation. Resideo Technologies Inc Corp (REZI) exhibits a P/S ratio of 0.49, which is 29.05% above the industry average. Given its robust revenue growth of 19.11%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

REZI.N

Resideo Technologies Inc

Arrow Electronics Inc

Climb Global Solutions Inc

Alliance Entertainment Holding Corp

0.24

0.87%

253.26M

Performance Decomposition

Market capitalization of REZI increased by 25.53% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 41.75 to 81.27.

The secondary factor is the Revenue Growth, contributed 19.11%to the performance.

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

19.11%

1.49B → 1.77B

Revenue Growth

-88.24%

2.89 → 0.34

Margin Expansion

94.66%

41.75 → 81.27

P/E Change

25.53%