SOBO Relative Valuation
SOBO'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, SOBO is overvalued; if below, it's undervalued.
Historical Valuation
South Bow Corp (SOBO) is now in the Fair zone, suggesting that its current forward PE ratio of 16.60 is considered Fairly compared with the five-year average of 16.27. The fair price of South Bow Corp (SOBO) is between 27.13 to 29.09 according to relative valuation methord.
Relative Value
Fair Zone
27.13-29.09
Current Price：27.46
Fair
16.60
PE
1Y
3Y
5Y
Trailing
Forward
10.74
EV/EBITDA
South Bow Corp. (SOBO) has a current EV/EBITDA of 10.74. The 5-year average EV/EBITDA is 10.76. The thresholds are as follows: Strongly Undervalued below 10.27, Undervalued between 10.27 and 10.51, Fairly Valued between 11.01 and 10.51, Overvalued between 11.01 and 11.25, and Strongly Overvalued above 11.25. The current Forward EV/EBITDA of 10.74 falls within the Historic Trend Line -Fairly Valued range.
14.57
EV/EBIT
South Bow Corp. (SOBO) has a current EV/EBIT of 14.57. The 5-year average EV/EBIT is 14.51. The thresholds are as follows: Strongly Undervalued below 13.74, Undervalued between 13.74 and 14.13, Fairly Valued between 14.89 and 14.13, Overvalued between 14.89 and 15.27, and Strongly Overvalued above 15.27. The current Forward EV/EBIT of 14.57 falls within the Historic Trend Line -Fairly Valued range.
2.94
PS
South Bow Corp. (SOBO) has a current PS of 2.94. The 5-year average PS is 2.78. The thresholds are as follows: Strongly Undervalued below 2.47, Undervalued between 2.47 and 2.63, Fairly Valued between 2.94 and 2.63, Overvalued between 2.94 and 3.10, and Strongly Overvalued above 3.10. The current Forward PS of 2.94 falls within the Overvalued range.
8.34
P/OCF
South Bow Corp. (SOBO) has a current P/OCF of 8.34. The 5-year average P/OCF is 8.78. The thresholds are as follows: Strongly Undervalued below 7.96, Undervalued between 7.96 and 8.37, Fairly Valued between 9.19 and 8.37, Overvalued between 9.19 and 9.60, and Strongly Overvalued above 9.60. The current Forward P/OCF of 8.34 falls within the Undervalued range.
10.05
P/FCF
South Bow Corp. (SOBO) has a current P/FCF of 10.05. The 5-year average P/FCF is 11.61. The thresholds are as follows: Strongly Undervalued below 9.37, Undervalued between 9.37 and 10.49, Fairly Valued between 12.74 and 10.49, Overvalued between 12.74 and 13.86, and Strongly Overvalued above 13.86. The current Forward P/FCF of 10.05 falls within the Undervalued range.
South Bow Corp (SOBO) has a current Price-to-Book (P/B) ratio of 2.18. Compared to its 3-year average P/B ratio of 2.10 , the current P/B ratio is approximately 3.71% higher. Relative to its 5-year average P/B ratio of 2.10, the current P/B ratio is about 3.71% higher. South Bow Corp (SOBO) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 7.54%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 7.54% , the current FCF yield is about -100.00% lower.
2.18
P/B
Median3y
2.10
Median5y
2.10
6.08
FCF Yield
Median3y
7.54
Median5y
7.54
Competitors Valuation Multiple
The average P/S ratio for SOBO's competitors is 1.65, providing a benchmark for relative valuation. South Bow Corp Corp (SOBO) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of -13.62%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of SOBO increased by 16.50% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 11.26 to 20.17.
The secondary factor is the Revenue Growth, contributed -13.62%to the performance.
Overall, the performance of SOBO in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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