ULS Valuation

UL Solutions Inc

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67.400

+0.3(0.447%)1D

Overview
Forecast
Valuation
Earnings

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 36.36 is considered Overvalued compared with the five-year average of 32.30. The fair price of UL Solutions Inc (ULS) is between 51.94 to 64.04 according to relative valuation methord. Compared to the current price of 67.40 USD , UL Solutions Inc is Overvalued By 5.25%.

Relative Value

Fair Zone

51.94-64.04

Current Price：67.40

5.25%

Overvalued

36.36

Trailing

Forward

18.09

EV/EBITDA

UL Solutions Inc. (ULS) has a current EV/EBITDA of 18.09. The 5-year average EV/EBITDA is 15.35. The thresholds are as follows: Strongly Undervalued below 7.40, Undervalued between 7.40 and 11.38, Fairly Valued between 19.33 and 11.38, Overvalued between 19.33 and 23.31, and Strongly Overvalued above 23.31. The current Forward EV/EBITDA of 18.09 falls within the Historic Trend Line -Fairly Valued range.

25.57

EV/EBIT

UL Solutions Inc. (ULS) has a current EV/EBIT of 25.57. The 5-year average EV/EBIT is 21.85. The thresholds are as follows: Strongly Undervalued below 10.63, Undervalued between 10.63 and 16.24, Fairly Valued between 27.47 and 16.24, Overvalued between 27.47 and 33.08, and Strongly Overvalued above 33.08. The current Forward EV/EBIT of 25.57 falls within the Historic Trend Line -Fairly Valued range.

4.29

UL Solutions Inc. (ULS) has a current PS of 4.29. The 5-year average PS is 3.42. The thresholds are as follows: Strongly Undervalued below 1.38, Undervalued between 1.38 and 2.40, Fairly Valued between 4.43 and 2.40, Overvalued between 4.43 and 5.45, and Strongly Overvalued above 5.45. The current Forward PS of 4.29 falls within the Historic Trend Line -Fairly Valued range.

18.67

P/OCF

UL Solutions Inc. (ULS) has a current P/OCF of 18.67. The 5-year average P/OCF is 18.88. The thresholds are as follows: Strongly Undervalued below 9.12, Undervalued between 9.12 and 14.00, Fairly Valued between 23.76 and 14.00, Overvalued between 23.76 and 28.64, and Strongly Overvalued above 28.64. The current Forward P/OCF of 18.67 falls within the Historic Trend Line -Fairly Valued range.

29.13

P/FCF

UL Solutions Inc. (ULS) has a current P/FCF of 29.13. The 5-year average P/FCF is 34.29. The thresholds are as follows: Strongly Undervalued below 15.84, Undervalued between 15.84 and 25.07, Fairly Valued between 43.51 and 25.07, Overvalued between 43.51 and 52.73, and Strongly Overvalued above 52.73. The current Forward P/FCF of 29.13 falls within the Historic Trend Line -Fairly Valued range.

UL Solutions Inc (ULS) has a current Price-to-Book (P/B) ratio of 12.33. Compared to its 3-year average P/B ratio of 12.53 , the current P/B ratio is approximately -1.55% higher. Relative to its 5-year average P/B ratio of 12.53, the current P/B ratio is about -1.55% higher. UL Solutions Inc (ULS) has a Forward Free Cash Flow (FCF) yield of approximately 2.71%. Compared to its 3-year average FCF yield of 4.01%, the current FCF yield is approximately -32.38% lower. Relative to its 5-year average FCF yield of 4.01% , the current FCF yield is about -32.38% lower.

12.33

P/B

Median3y

12.53

Median5y

12.53

2.71

FCF Yield

Median3y

4.01

Median5y

4.01

Competitors Valuation Multiple

The average P/S ratio for ULS's competitors is 2.69, providing a benchmark for relative valuation. UL Solutions Inc Corp (ULS) exhibits a P/S ratio of 4.29, which is 59.77% 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

Booz Allen Hamilton Holding Corp

Performance Decomposition

Market capitalization of ULS increased by 23.60% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 31.63 to 41.50.

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.

6.30%

730.00M → 776.00M

Revenue Growth

-13.91%

14.52 → 12.50

Margin Expansion

31.21%

31.63 → 41.50

P/E Change

23.60%