RXO Relative Valuation
RXO'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, RXO is overvalued; if below, it's undervalued.
Historical Valuation
RXO Inc (RXO) is now in the Overvalued zone, suggesting that its current forward PE ratio of 242.18 is considered Overvalued compared with the five-year average of 73.35. The fair price of RXO Inc (RXO) is between 1.76 to 6.61 according to relative valuation methord. Compared to the current price of 14.24 USD , RXO Inc is Overvalued By 115.42%.
Relative Value
Fair Zone
1.76-6.61
Current Price：14.24
115.42%
Overvalued
242.18
PE
1Y
3Y
5Y
Trailing
Forward
23.45
EV/EBITDA
RXO Inc. (RXO) has a current EV/EBITDA of 23.45. The 5-year average EV/EBITDA is 20.35. The thresholds are as follows: Strongly Undervalued below 11.85, Undervalued between 11.85 and 16.10, Fairly Valued between 24.60 and 16.10, Overvalued between 24.60 and 28.85, and Strongly Overvalued above 28.85. The current Forward EV/EBITDA of 23.45 falls within the Historic Trend Line -Fairly Valued range.
70.82
EV/EBIT
RXO Inc. (RXO) has a current EV/EBIT of 70.82. The 5-year average EV/EBIT is 40.57. The thresholds are as follows: Strongly Undervalued below 10.41, Undervalued between 10.41 and 25.49, Fairly Valued between 55.65 and 25.49, Overvalued between 55.65 and 70.73, and Strongly Overvalued above 70.73. The current Forward EV/EBIT of 70.82 falls within the Strongly Overvalued range.
0.40
PS
RXO Inc. (RXO) has a current PS of 0.40. The 5-year average PS is 0.57. The thresholds are as follows: Strongly Undervalued below 0.36, Undervalued between 0.36 and 0.46, Fairly Valued between 0.67 and 0.46, Overvalued between 0.67 and 0.78, and Strongly Overvalued above 0.78. The current Forward PS of 0.40 falls within the Undervalued range.
23.37
P/OCF
RXO Inc. (RXO) has a current P/OCF of 23.37. The 5-year average P/OCF is 23.69. The thresholds are as follows: Strongly Undervalued below -10.83, Undervalued between -10.83 and 6.43, Fairly Valued between 40.95 and 6.43, Overvalued between 40.95 and 58.22, and Strongly Overvalued above 58.22. The current Forward P/OCF of 23.37 falls within the Historic Trend Line -Fairly Valued range.
53.26
P/FCF
RXO Inc. (RXO) has a current P/FCF of 53.26. The 5-year average P/FCF is 46.22. The thresholds are as follows: Strongly Undervalued below -152.82, Undervalued between -152.82 and -53.30, Fairly Valued between 145.73 and -53.30, Overvalued between 145.73 and 245.25, and Strongly Overvalued above 245.25. The current Forward P/FCF of 53.26 falls within the Historic Trend Line -Fairly Valued range.
RXO Inc (RXO) has a current Price-to-Book (P/B) ratio of 1.48. Compared to its 3-year average P/B ratio of 3.38 , the current P/B ratio is approximately -56.23% higher. Relative to its 5-year average P/B ratio of 3.33, the current P/B ratio is about -55.52% higher. RXO Inc (RXO) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.12%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.42% , the current FCF yield is about -100.00% lower.
1.48
P/B
Median3y
3.38
Median5y
3.33
-0.77
FCF Yield
Median3y
2.12
Median5y
2.42
Competitors Valuation Multiple
The average P/S ratio for RXO's competitors is , providing a benchmark for relative valuation. RXO Inc Corp (RXO) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 36.63%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of RXO decreased by 40.27% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.04B to 1.42B.
The secondary factor is the P/E Change, contributed 18.86%to the performance.
Overall, the performance of RXO in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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