SMG Valuation

Scotts Miracle-Gro Co

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56.480

-0.01(-0.018%)1D

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 13.46 is considered Undervalued compared with the five-year average of 24.48. The fair price of Scotts Miracle-Gro Co (SMG) is between 65.70 to 137.65 according to relative valuation methord. Compared to the current price of 56.48 USD , Scotts Miracle-Gro Co is Undervalued By 14.03%.

Relative Value

Fair Zone

65.70-137.65

Current Price：56.48

14.03%

Undervalued

13.46

Trailing

Forward

8.96

EV/EBITDA

Scotts Miracle-Gro Co. (SMG) has a current EV/EBITDA of 8.96. The 5-year average EV/EBITDA is 13.80. The thresholds are as follows: Strongly Undervalued below 7.92, Undervalued between 7.92 and 10.86, Fairly Valued between 16.73 and 10.86, Overvalued between 16.73 and 19.67, and Strongly Overvalued above 19.67. The current Forward EV/EBITDA of 8.96 falls within the Undervalued range.

11.18

EV/EBIT

Scotts Miracle-Gro Co. (SMG) has a current EV/EBIT of 11.18. The 5-year average EV/EBIT is 18.26. The thresholds are as follows: Strongly Undervalued below 10.53, Undervalued between 10.53 and 14.39, Fairly Valued between 22.12 and 14.39, Overvalued between 22.12 and 25.98, and Strongly Overvalued above 25.98. The current Forward EV/EBIT of 11.18 falls within the Undervalued range.

56.48

Scotts Miracle-Gro Co. (SMG) has a current PS of 56.48. The 5-year average PS is 1.76. The thresholds are as follows: Strongly Undervalued below -7.45, Undervalued between -7.45 and -2.85, Fairly Valued between 6.36 and -2.85, Overvalued between 6.36 and 10.97, and Strongly Overvalued above 10.97. The current Forward PS of 56.48 falls within the Strongly Overvalued range.

8.38

P/OCF

Scotts Miracle-Gro Co. (SMG) has a current P/OCF of 8.38. The 5-year average P/OCF is 12.18. The thresholds are as follows: Strongly Undervalued below -3.90, Undervalued between -3.90 and 4.14, Fairly Valued between 20.23 and 4.14, Overvalued between 20.23 and 28.27, and Strongly Overvalued above 28.27. The current Forward P/OCF of 8.38 falls within the Historic Trend Line -Fairly Valued range.

11.70

P/FCF

Scotts Miracle-Gro Co. (SMG) has a current P/FCF of 11.70. The 5-year average P/FCF is 11.51. The thresholds are as follows: Strongly Undervalued below -32.75, Undervalued between -32.75 and -10.62, Fairly Valued between 33.64 and -10.62, Overvalued between 33.64 and 55.77, and Strongly Overvalued above 55.77. The current Forward P/FCF of 11.70 falls within the Historic Trend Line -Fairly Valued range.

Scotts Miracle-Gro Co (SMG) has a current Price-to-Book (P/B) ratio of -9.12. Compared to its 3-year average P/B ratio of 0.53 , the current P/B ratio is approximately -1826.31% higher. Relative to its 5-year average P/B ratio of 4.83, the current P/B ratio is about -288.66% higher. Scotts Miracle-Gro Co (SMG) has a Forward Free Cash Flow (FCF) yield of approximately 8.40%. Compared to its 3-year average FCF yield of 12.74%, the current FCF yield is approximately -34.08% lower. Relative to its 5-year average FCF yield of 7.22% , the current FCF yield is about 16.34% lower.

-9.12

P/B

Median3y

0.53

Median5y

4.83

8.40

FCF Yield

Median3y

12.74

Median5y

7.22

Competitors Valuation Multiple

The average P/S ratio for SMG's competitors is 39.66, providing a benchmark for relative valuation. Scotts Miracle-Gro Co Corp (SMG) exhibits a P/S ratio of 56.48, which is 42.41% above the industry average. Given its robust revenue growth of -6.58%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

SMG.N

Scotts Miracle-Gro Co

Oil-Dri Corporation of America

Performance Decomposition

Market capitalization of SMG decreased by 25.96% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 20.05 to 22.87.

The secondary factor is the Revenue Growth, contributed -6.58%to the performance.

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

-6.58%

414.70M → 387.40M

Revenue Growth

-33.41%

-58.84 → -39.18

Margin Expansion

14.03%

20.05 → 22.87

P/E Change

-25.96%