SHLS Relative Valuation
SHLS'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, SHLS is overvalued; if below, it's undervalued.
Historical Valuation
Shoals Technologies Group Inc (SHLS) is now in the Fair zone, suggesting that its current forward PE ratio of 15.94 is considered Fairly compared with the five-year average of 40.61. The fair price of Shoals Technologies Group Inc (SHLS) is between 6.69 to 31.83 according to relative valuation methord.
Relative Value
Fair Zone
6.69-31.83
Current Price：7.93
Fair
15.94
PE
1Y
3Y
5Y
Trailing
Forward
11.20
EV/EBITDA
Shoals Technologies Group Inc. (SHLS) has a current EV/EBITDA of 11.20. The 5-year average EV/EBITDA is 21.00. The thresholds are as follows: Strongly Undervalued below -1.43, Undervalued between -1.43 and 9.79, Fairly Valued between 32.22 and 9.79, Overvalued between 32.22 and 43.44, and Strongly Overvalued above 43.44. The current Forward EV/EBITDA of 11.20 falls within the Historic Trend Line -Fairly Valued range.
14.28
EV/EBIT
Shoals Technologies Group Inc. (SHLS) has a current EV/EBIT of 14.28. The 5-year average EV/EBIT is 27.70. The thresholds are as follows: Strongly Undervalued below -2.82, Undervalued between -2.82 and 12.44, Fairly Valued between 42.95 and 12.44, Overvalued between 42.95 and 58.21, and Strongly Overvalued above 58.21. The current Forward EV/EBIT of 14.28 falls within the Historic Trend Line -Fairly Valued range.
2.33
PS
Shoals Technologies Group Inc. (SHLS) has a current PS of 2.33. The 5-year average PS is 5.82. The thresholds are as follows: Strongly Undervalued below -1.33, Undervalued between -1.33 and 2.24, Fairly Valued between 9.39 and 2.24, Overvalued between 9.39 and 12.96, and Strongly Overvalued above 12.96. The current Forward PS of 2.33 falls within the Historic Trend Line -Fairly Valued range.
19.74
P/OCF
Shoals Technologies Group Inc. (SHLS) has a current P/OCF of 19.74. The 5-year average P/OCF is 34.78. The thresholds are as follows: Strongly Undervalued below -30.55, Undervalued between -30.55 and 2.11, Fairly Valued between 67.44 and 2.11, Overvalued between 67.44 and 100.11, and Strongly Overvalued above 100.11. The current Forward P/OCF of 19.74 falls within the Historic Trend Line -Fairly Valued range.
89.96
P/FCF
Shoals Technologies Group Inc. (SHLS) has a current P/FCF of 89.96. The 5-year average P/FCF is 45.09. The thresholds are as follows: Strongly Undervalued below -48.65, Undervalued between -48.65 and -1.78, Fairly Valued between 91.96 and -1.78, Overvalued between 91.96 and 138.84, and Strongly Overvalued above 138.84. The current Forward P/FCF of 89.96 falls within the Historic Trend Line -Fairly Valued range.
Shoals Technologies Group Inc (SHLS) has a current Price-to-Book (P/B) ratio of 2.25. Compared to its 3-year average P/B ratio of 6.58 , the current P/B ratio is approximately -65.81% higher. Relative to its 5-year average P/B ratio of 233.55, the current P/B ratio is about -99.04% higher. Shoals Technologies Group Inc (SHLS) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 5.15%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.21% , the current FCF yield is about -100.00% lower.
2.25
P/B
Median3y
6.58
Median5y
233.55
0.61
FCF Yield
Median3y
5.15
Median5y
3.21
Competitors Valuation Multiple
The average P/S ratio for SHLS's competitors is , providing a benchmark for relative valuation. Shoals Technologies Group Inc Corp (SHLS) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 32.93%, 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 SHLS increased by 43.40% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 1.17 to 41.71.
The secondary factor is the Revenue Growth, contributed 32.93%to the performance.
Overall, the performance of SHLS in the past 1 year is driven by P/E Change. Which is more unsustainable.
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