ULS PE Ratio & Valuation,Is ULS Overvalued

ULS Relative Valuation

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

Historical Valuation

UL Solutions Inc (ULS) is now in the Fair zone, suggesting that its current forward PE ratio of 38.74 is considered Fairly compared with the five-year average of 33.52. The fair price of UL Solutions Inc (ULS) is between 65.80 to 80.65 according to relative valuation methord.

Relative Value

Fair Zone

65.80-80.65

Current Price：77.88

Fair

38.74

19.97

EV/EBITDA

UL Solutions Inc. (ULS) has a current EV/EBITDA of 19.97. The 5-year average EV/EBITDA is 16.20. The thresholds are as follows: Strongly Undervalued below 8.15, Undervalued between 8.15 and 12.18, Fairly Valued between 20.23 and 12.18, Overvalued between 20.23 and 24.25, and Strongly Overvalued above 24.25. The current Forward EV/EBITDA of 19.97 falls within the Historic Trend Line -Fairly Valued range.

27.83

EV/EBIT

UL Solutions Inc. (ULS) has a current EV/EBIT of 27.83. The 5-year average EV/EBIT is 22.97. The thresholds are as follows: Strongly Undervalued below 11.78, Undervalued between 11.78 and 17.37, Fairly Valued between 28.56 and 17.37, Overvalued between 28.56 and 34.16, and Strongly Overvalued above 34.16. The current Forward EV/EBIT of 27.83 falls within the Historic Trend Line -Fairly Valued range.

4.92

UL Solutions Inc. (ULS) has a current PS of 4.92. The 5-year average PS is 3.69. The thresholds are as follows: Strongly Undervalued below 1.52, Undervalued between 1.52 and 2.60, Fairly Valued between 4.77 and 2.60, Overvalued between 4.77 and 5.85, and Strongly Overvalued above 5.85. The current Forward PS of 4.92 falls within the Overvalued range.

26.07

P/OCF

UL Solutions Inc. (ULS) has a current P/OCF of 26.07. The 5-year average P/OCF is 19.85. The thresholds are as follows: Strongly Undervalued below 9.48, Undervalued between 9.48 and 14.66, Fairly Valued between 25.03 and 14.66, Overvalued between 25.03 and 30.21, and Strongly Overvalued above 30.21. The current Forward P/OCF of 26.07 falls within the Overvalued range.

45.35

P/FCF

UL Solutions Inc. (ULS) has a current P/FCF of 45.35. The 5-year average P/FCF is 35.44. The thresholds are as follows: Strongly Undervalued below 16.37, Undervalued between 16.37 and 25.90, Fairly Valued between 44.97 and 25.90, Overvalued between 44.97 and 54.50, and Strongly Overvalued above 54.50. The current Forward P/FCF of 45.35 falls within the Overvalued range.

UL Solutions Inc (ULS) has a current Price-to-Book (P/B) ratio of 13.10. Compared to its 3-year average P/B ratio of 12.59 , the current P/B ratio is approximately 4.04% higher. Relative to its 5-year average P/B ratio of 12.59, the current P/B ratio is about 4.04% higher. UL Solutions Inc (ULS) has a Forward Free Cash Flow (FCF) yield of approximately 2.49%. Compared to its 3-year average FCF yield of 3.72%, the current FCF yield is approximately -33.24% lower. Relative to its 5-year average FCF yield of 3.72% , the current FCF yield is about -33.24% lower.

13.10

P/B

Median3y

12.59

Median5y

12.59

2.49

FCF Yield

Median3y

3.72

Median5y

3.72

Competitors Valuation Multiple

The average P/S ratio for ULS's competitors is 3.29, providing a benchmark for relative valuation. UL Solutions Inc Corp (ULS) exhibits a P/S ratio of 4.92, which is 49.83% above the industry average. Given its robust revenue growth of 7.11%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of ULS increased by 56.13% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 28.59 to 46.58.

The secondary factor is the Revenue Growth, contributed 7.11%to the performance.

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

7.11%

731.00M → 783.00M

Revenue Growth

-13.91%

14.52 → 12.50

Margin Expansion

62.93%

28.59 → 46.58

P/E Change

56.13%

49.88 → 77.88

Mkt Cap Growth

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Frequently Asked Questions

Is UL Solutions Inc (ULS) currently overvalued or undervalued?

What is UL Solutions Inc (ULS) fair value?

ULS'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. The fair price of UL Solutions Inc (ULS) is between 65.80 to 80.65 according to relative valuation methord.

How does ULS's valuation metrics compare to the industry average?

What is the current P/B ratio for UL Solutions Inc (ULS) as of Dec 15 2025?

As of Dec 15 2025, UL Solutions Inc (ULS) has a P/B ratio of 13.10. This indicates that the market values ULS at 13.10 times its book value.

What is the current FCF Yield for UL Solutions Inc (ULS) as of Dec 15 2025?

As of Dec 15 2025, UL Solutions Inc (ULS) has a FCF Yield of 2.49%. This means that for every dollar of UL Solutions Inc’s market capitalization, the company generates 2.49 cents in free cash flow.

What is the current Forward P/E ratio for UL Solutions Inc (ULS) as of Dec 15 2025?

As of Dec 15 2025, UL Solutions Inc (ULS) has a Forward P/E ratio of 38.74. This means the market is willing to pay $38.74 for every dollar of UL Solutions Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for UL Solutions Inc (ULS) as of Dec 15 2025?

As of Dec 15 2025, UL Solutions Inc (ULS) has a Forward P/S ratio of 4.92. This means the market is valuing ULS at $4.92 for every dollar of expected revenue over the next 12 months.

ULS Valuation