SHC Valuation

Sotera Health Co

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16.370

+0.17(1.049%)1D

Overview
Forecast
Valuation
Earnings

SHC Relative Valuation

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

Historical Valuation

Sotera Health Co (SHC) is now in the Fair zone, suggesting that its current forward PE ratio of 19.59 is considered Fairly compared with the five-year average of 20.23. The fair price of Sotera Health Co (SHC) is between 13.69 to 21.91 according to relative valuation methord.

Relative Value

Fair Zone

13.69-21.91

Current Price：16.20

Fair

19.79

Trailing

Forward

11.04

EV/EBITDA

Sotera Health Co. (SHC) has a current EV/EBITDA of 11.04. The 5-year average EV/EBITDA is 12.83. The thresholds are as follows: Strongly Undervalued below 4.95, Undervalued between 4.95 and 8.89, Fairly Valued between 16.78 and 8.89, Overvalued between 16.78 and 20.72, and Strongly Overvalued above 20.72. The current Forward EV/EBITDA of 11.04 falls within the Historic Trend Line -Fairly Valued range.

13.00

EV/EBIT

Sotera Health Co. (SHC) has a current EV/EBIT of 13.00. The 5-year average EV/EBIT is 14.94. The thresholds are as follows: Strongly Undervalued below 5.98, Undervalued between 5.98 and 10.46, Fairly Valued between 19.42 and 10.46, Overvalued between 19.42 and 23.89, and Strongly Overvalued above 23.89. The current Forward EV/EBIT of 13.00 falls within the Historic Trend Line -Fairly Valued range.

3.87

Sotera Health Co. (SHC) has a current PS of 3.87. The 5-year average PS is 4.72. The thresholds are as follows: Strongly Undervalued below 1.01, Undervalued between 1.01 and 2.87, Fairly Valued between 6.57 and 2.87, Overvalued between 6.57 and 8.43, and Strongly Overvalued above 8.43. The current Forward PS of 3.87 falls within the Historic Trend Line -Fairly Valued range.

16.10

P/OCF

Sotera Health Co. (SHC) has a current P/OCF of 16.10. The 5-year average P/OCF is 15.79. The thresholds are as follows: Strongly Undervalued below -6.81, Undervalued between -6.81 and 4.49, Fairly Valued between 27.09 and 4.49, Overvalued between 27.09 and 38.39, and Strongly Overvalued above 38.39. The current Forward P/OCF of 16.10 falls within the Historic Trend Line -Fairly Valued range.

15.95

P/FCF

Sotera Health Co. (SHC) has a current P/FCF of 15.95. The 5-year average P/FCF is 22.89. The thresholds are as follows: Strongly Undervalued below -1.80, Undervalued between -1.80 and 10.55, Fairly Valued between 35.24 and 10.55, Overvalued between 35.24 and 47.58, and Strongly Overvalued above 47.58. The current Forward P/FCF of 15.95 falls within the Historic Trend Line -Fairly Valued range.

Sotera Health Co (SHC) has a current Price-to-Book (P/B) ratio of 9.00. Compared to its 3-year average P/B ratio of 9.18 , the current P/B ratio is approximately -2.01% higher. Relative to its 5-year average P/B ratio of 9.89, the current P/B ratio is about -9.03% higher. Sotera Health Co (SHC) has a Forward Free Cash Flow (FCF) yield of approximately 2.40%. Compared to its 3-year average FCF yield of -1.55%, the current FCF yield is approximately -255.37% lower. Relative to its 5-year average FCF yield of -0.22% , the current FCF yield is about -1184.29% lower.

9.09

P/B

Median3y

9.18

Median5y

9.89

2.45

FCF Yield

Median3y

-1.55

Median5y

-0.22

Competitors Valuation Multiple

The average P/S ratio for SHC's competitors is 3.07, providing a benchmark for relative valuation. Sotera Health Co Corp (SHC) exhibits a P/S ratio of 3.87, which is 26.14% above the industry average. Given its robust revenue growth of 6.42%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Transmedics Group Inc

Merit Medical Systems Inc

Lantheus Holdings Inc

Performance Decomposition

Market capitalization of SHC increased by 6.02% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 170.09 to 193.63.

The secondary factor is the Revenue Growth, contributed 6.42%to the performance.

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

6.42%

276.59M → 294.34M

Revenue Growth

-14.24%

3.16 → 2.71

Margin Expansion

13.84%

170.09 → 193.63

P/E Change

6.02%