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 Overvalued zone, suggesting that its current forward PE ratio of 39.52 is considered Overvalued compared with the five-year average of 33.45. The fair price of UL Solutions Inc (ULS) is between 56.71 to 71.52 according to relative valuation methord. Compared to the current price of 79.38 USD , UL Solutions Inc is Overvalued By 10.99%.
Relative Value
Fair Zone
56.71-71.52
Current Price：79.38
10.99%
Overvalued
38.21
PE
1Y
3Y
5Y
Trailing
Forward
20.35
EV/EBITDA
UL Solutions Inc. (ULS) has a current EV/EBITDA of 20.35. The 5-year average EV/EBITDA is 16.14. The thresholds are as follows: Strongly Undervalued below 8.08, Undervalued between 8.08 and 12.11, Fairly Valued between 20.17 and 12.11, Overvalued between 20.17 and 24.20, and Strongly Overvalued above 24.20. The current Forward EV/EBITDA of 20.35 falls within the Overvalued range.
28.34
EV/EBIT
UL Solutions Inc. (ULS) has a current EV/EBIT of 28.34. The 5-year average EV/EBIT is 22.89. The thresholds are as follows: Strongly Undervalued below 11.67, Undervalued between 11.67 and 17.28, Fairly Valued between 28.50 and 17.28, Overvalued between 28.50 and 34.11, and Strongly Overvalued above 34.11. The current Forward EV/EBIT of 28.34 falls within the Historic Trend Line -Fairly Valued range.
5.02
PS
UL Solutions Inc. (ULS) has a current PS of 5.02. The 5-year average PS is 3.67. The thresholds are as follows: Strongly Undervalued below 1.50, Undervalued between 1.50 and 2.58, Fairly Valued between 4.75 and 2.58, Overvalued between 4.75 and 5.83, and Strongly Overvalued above 5.83. The current Forward PS of 5.02 falls within the Overvalued range.
26.58
P/OCF
UL Solutions Inc. (ULS) has a current P/OCF of 26.58. The 5-year average P/OCF is 19.74. The thresholds are as follows: Strongly Undervalued below 9.41, Undervalued between 9.41 and 14.58, Fairly Valued between 24.91 and 14.58, Overvalued between 24.91 and 30.08, and Strongly Overvalued above 30.08. The current Forward P/OCF of 26.58 falls within the Overvalued range.
46.22
P/FCF
UL Solutions Inc. (ULS) has a current P/FCF of 46.22. The 5-year average P/FCF is 35.27. The thresholds are as follows: Strongly Undervalued below 16.21, Undervalued between 16.21 and 25.74, Fairly Valued between 44.80 and 25.74, Overvalued between 44.80 and 54.33, and Strongly Overvalued above 54.33. The current Forward P/FCF of 46.22 falls within the Overvalued range.
UL Solutions Inc (ULS) has a current Price-to-Book (P/B) ratio of 13.37. Compared to its 3-year average P/B ratio of 12.59 , the current P/B ratio is approximately 6.21% higher. Relative to its 5-year average P/B ratio of 12.59, the current P/B ratio is about 6.21% higher. UL Solutions Inc (ULS) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.75%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.75% , the current FCF yield is about -100.00% lower.
12.92
P/B
Median3y
12.59
Median5y
12.59
2.44
FCF Yield
Median3y
3.75
Median5y
3.75
Competitors Valuation Multiple
The average P/S ratio for ULS's competitors is , providing a benchmark for relative valuation. UL Solutions Inc Corp (ULS) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 6.30%, 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 ULS increased by 53.85% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 28.46 to 45.95.
The secondary factor is the Revenue Growth, contributed 6.30%to the performance.
Overall, the performance of ULS in the past 1 year is driven by P/E Change. Which is more unsustainable.
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