TTC Valuation

Toro Co

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79.110

+3.14(4.133%)1D

Overview
Forecast
Valuation
Earnings

TTC Relative Valuation

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

Historical Valuation

Toro Co (TTC) is now in the Undervalued zone, suggesting that its current forward PE ratio of 16.92 is considered Undervalued compared with the five-year average of 22.02. The fair price of Toro Co (TTC) is between 87.85 to 118.64 according to relative valuation methord. Compared to the current price of 79.11 USD , Toro Co is Undervalued By 9.94%.

Relative Value

Fair Zone

87.85-118.64

Current Price：79.11

9.94%

Undervalued

16.91

Trailing

Forward

11.73

EV/EBITDA

Toro Co. (TTC) has a current EV/EBITDA of 11.73. The 5-year average EV/EBITDA is 14.71. The thresholds are as follows: Strongly Undervalued below 9.70, Undervalued between 9.70 and 12.20, Fairly Valued between 17.21 and 12.20, Overvalued between 17.21 and 19.71, and Strongly Overvalued above 19.71. The current Forward EV/EBITDA of 11.73 falls within the Undervalued range.

14.75

EV/EBIT

Toro Co. (TTC) has a current EV/EBIT of 14.75. The 5-year average EV/EBIT is 17.94. The thresholds are as follows: Strongly Undervalued below 12.01, Undervalued between 12.01 and 14.98, Fairly Valued between 20.91 and 14.98, Overvalued between 20.91 and 23.88, and Strongly Overvalued above 23.88. The current Forward EV/EBIT of 14.75 falls within the Undervalued range.

1.64

Toro Co. (TTC) has a current PS of 1.64. The 5-year average PS is 2.16. The thresholds are as follows: Strongly Undervalued below 1.34, Undervalued between 1.34 and 1.75, Fairly Valued between 2.56 and 1.75, Overvalued between 2.56 and 2.97, and Strongly Overvalued above 2.97. The current Forward PS of 1.64 falls within the Undervalued range.

12.15

P/OCF

Toro Co. (TTC) has a current P/OCF of 12.15. The 5-year average P/OCF is 16.89. The thresholds are as follows: Strongly Undervalued below 7.46, Undervalued between 7.46 and 12.18, Fairly Valued between 21.60 and 12.18, Overvalued between 21.60 and 26.31, and Strongly Overvalued above 26.31. The current Forward P/OCF of 12.15 falls within the Undervalued range.

15.57

P/FCF

Toro Co. (TTC) has a current P/FCF of 15.57. The 5-year average P/FCF is 23.36. The thresholds are as follows: Strongly Undervalued below 10.70, Undervalued between 10.70 and 17.03, Fairly Valued between 29.70 and 17.03, Overvalued between 29.70 and 36.03, and Strongly Overvalued above 36.03. The current Forward P/FCF of 15.57 falls within the Undervalued range.

Toro Co (TTC) has a current Price-to-Book (P/B) ratio of 5.10. Compared to its 3-year average P/B ratio of 6.26 , the current P/B ratio is approximately -18.63% higher. Relative to its 5-year average P/B ratio of 7.23, the current P/B ratio is about -29.53% higher. Toro Co (TTC) has a Forward Free Cash Flow (FCF) yield of approximately 5.91%. Compared to its 3-year average FCF yield of 2.95%, the current FCF yield is approximately 100.26% lower. Relative to its 5-year average FCF yield of 3.39% , the current FCF yield is about 74.22% lower.

5.09

P/B

Median3y

6.26

Median5y

7.23

6.06

FCF Yield

Median3y

2.95

Median5y

3.39

Competitors Valuation Multiple

The average P/S ratio for TTC's competitors is 0.98, providing a benchmark for relative valuation. Toro Co Corp (TTC) exhibits a P/S ratio of 1.64, which is 67.84% above the industry average. Given its robust revenue growth of -2.31%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

SiteOne Landscape Supply Inc

Performance Decomposition

Market capitalization of TTC decreased by 13.81% over the past 1 year. The primary factor behind the change was an decrease in Revenue Growth from 1.35B to 1.32B.

The secondary factor is the Margin Expansion, contributed -3.26%to the performance.

Overall, the performance of TTC in the past 1 year is driven by Revenue Growth. Which is more sustainable.

-2.31%

1.35B → 1.32B

Revenue Growth

-3.26%

10.73 → 10.38

Margin Expansion

-8.24%

21.27 → 19.52

P/E Change

-13.81%