SMG Valuation

Scotts Miracle-Gro Co

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58.730

+0.28(0.479%)1D

Overview
Forecast
Valuation
Earnings

SMG Relative Valuation

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

Historical Valuation

Scotts Miracle-Gro Co (SMG) is now in the Undervalued zone, suggesting that its current forward PE ratio of 14.06 is considered Undervalued compared with the five-year average of 24.64. The fair price of Scotts Miracle-Gro Co (SMG) is between 67.80 to 138.14 according to relative valuation methord. Compared to the current price of 58.45 USD , Scotts Miracle-Gro Co is Undervalued By 13.79%.

Relative Value

Fair Zone

67.80-138.14

Current Price：58.45

13.79%

Undervalued

14.06

Trailing

Forward

9.44

EV/EBITDA

Scotts Miracle-Gro Co. (SMG) has a current EV/EBITDA of 9.44. The 5-year average EV/EBITDA is 13.90. The thresholds are as follows: Strongly Undervalued below 8.28, Undervalued between 8.28 and 11.09, Fairly Valued between 16.72 and 11.09, Overvalued between 16.72 and 19.53, and Strongly Overvalued above 19.53. The current Forward EV/EBITDA of 9.44 falls within the Undervalued range.

12.11

EV/EBIT

Scotts Miracle-Gro Co. (SMG) has a current EV/EBIT of 12.11. The 5-year average EV/EBIT is 18.34. The thresholds are as follows: Strongly Undervalued below 10.89, Undervalued between 10.89 and 14.62, Fairly Valued between 22.07 and 14.62, Overvalued between 22.07 and 25.80, and Strongly Overvalued above 25.80. The current Forward EV/EBIT of 12.11 falls within the Undervalued range.

0.99

Scotts Miracle-Gro Co. (SMG) has a current PS of 0.99. The 5-year average PS is 1.41. The thresholds are as follows: Strongly Undervalued below 0.20, Undervalued between 0.20 and 0.80, Fairly Valued between 2.02 and 0.80, Overvalued between 2.02 and 2.62, and Strongly Overvalued above 2.62. The current Forward PS of 0.99 falls within the Historic Trend Line -Fairly Valued range.

9.06

P/OCF

Scotts Miracle-Gro Co. (SMG) has a current P/OCF of 9.06. The 5-year average P/OCF is 12.79. The thresholds are as follows: Strongly Undervalued below -3.68, Undervalued between -3.68 and 4.55, Fairly Valued between 21.02 and 4.55, Overvalued between 21.02 and 29.25, and Strongly Overvalued above 29.25. The current Forward P/OCF of 9.06 falls within the Historic Trend Line -Fairly Valued range.

12.10

P/FCF

Scotts Miracle-Gro Co. (SMG) has a current P/FCF of 12.10. The 5-year average P/FCF is 12.44. The thresholds are as follows: Strongly Undervalued below -32.36, Undervalued between -32.36 and -9.96, Fairly Valued between 34.83 and -9.96, Overvalued between 34.83 and 57.23, and Strongly Overvalued above 57.23. The current Forward P/FCF of 12.10 falls within the Historic Trend Line -Fairly Valued range.

Scotts Miracle-Gro Co (SMG) has a current Price-to-Book (P/B) ratio of -19.73. Compared to its 3-year average P/B ratio of 2.88 , the current P/B ratio is approximately -785.57% higher. Relative to its 5-year average P/B ratio of 6.10, the current P/B ratio is about -423.43% higher. Scotts Miracle-Gro Co (SMG) has a Forward Free Cash Flow (FCF) yield of approximately 7.06%. Compared to its 3-year average FCF yield of 11.27%, the current FCF yield is approximately -37.35% lower. Relative to its 5-year average FCF yield of 7.05% , the current FCF yield is about 0.26% lower.

-19.73

P/B

Median3y

2.88

Median5y

6.10

7.06

FCF Yield

Median3y

11.27

Median5y

7.05

Competitors Valuation Multiple

The average P/S ratio for SMG's competitors is 0.77, providing a benchmark for relative valuation. Scotts Miracle-Gro Co Corp (SMG) exhibits a P/S ratio of 0.99, which is 28.85% above the industry average. Given its robust revenue growth of -1.18%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

SMG.N

Scotts Miracle-Gro Co

Lithium Americas Corp

Loss

623.08M

ODC.N

Oil-Dri Corporation of America

Performance Decomposition

Market capitalization of SMG decreased by 17.65% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 10.99 to 12.55.

The secondary factor is the Revenue Growth, contributed -1.18%to the performance.

Overall, the performance of SMG in the past 1 year is driven by Margin Expansion. Which is more sustainable.

-1.18%

1.20B → 1.19B

Revenue Growth

14.19%

10.99 → 12.55

Margin Expansion

-30.66%

91.39 → 63.37

P/E Change

-17.65%