ULTA Valuation

Ulta Beauty Inc

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517.790

+7.94(1.557%)1D

ULTA Relative Valuation

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

Historical Valuation

Ulta Beauty Inc (ULTA) is now in the Fair zone, suggesting that its current forward PE ratio of 20.22 is considered Fairly compared with the five-year average of 19.65. The fair price of Ulta Beauty Inc (ULTA) is between 442.33 to 604.45 according to relative valuation methord.

Relative Value

Fair Zone

442.33-604.45

Current Price：517.79

Fair

20.22

Trailing

Forward

13.90

EV/EBITDA

Ulta Beauty Inc. (ULTA) has a current EV/EBITDA of 13.90. The 5-year average EV/EBITDA is 13.26. The thresholds are as follows: Strongly Undervalued below 9.49, Undervalued between 9.49 and 11.37, Fairly Valued between 15.15 and 11.37, Overvalued between 15.15 and 17.04, and Strongly Overvalued above 17.04. The current Forward EV/EBITDA of 13.90 falls within the Historic Trend Line -Fairly Valued range.

16.69

EV/EBIT

Ulta Beauty Inc. (ULTA) has a current EV/EBIT of 16.69. The 5-year average EV/EBIT is 16.15. The thresholds are as follows: Strongly Undervalued below 9.64, Undervalued between 9.64 and 12.89, Fairly Valued between 19.40 and 12.89, Overvalued between 19.40 and 22.66, and Strongly Overvalued above 22.66. The current Forward EV/EBIT of 16.69 falls within the Historic Trend Line -Fairly Valued range.

517.79

Ulta Beauty Inc. (ULTA) has a current PS of 517.79. The 5-year average PS is 5.34. The thresholds are as follows: Strongly Undervalued below -77.25, Undervalued between -77.25 and -35.95, Fairly Valued between 46.63 and -35.95, Overvalued between 46.63 and 87.92, and Strongly Overvalued above 87.92. The current Forward PS of 517.79 falls within the Strongly Overvalued range.

13.83

P/OCF

Ulta Beauty Inc. (ULTA) has a current P/OCF of 13.83. The 5-year average P/OCF is 15.07. The thresholds are as follows: Strongly Undervalued below 9.76, Undervalued between 9.76 and 12.41, Fairly Valued between 17.72 and 12.41, Overvalued between 17.72 and 20.37, and Strongly Overvalued above 20.37. The current Forward P/OCF of 13.83 falls within the Historic Trend Line -Fairly Valued range.

24.72

P/FCF

Ulta Beauty Inc. (ULTA) has a current P/FCF of 24.72. The 5-year average P/FCF is 21.97. The thresholds are as follows: Strongly Undervalued below 14.06, Undervalued between 14.06 and 18.02, Fairly Valued between 25.92 and 18.02, Overvalued between 25.92 and 29.88, and Strongly Overvalued above 29.88. The current Forward P/FCF of 24.72 falls within the Historic Trend Line -Fairly Valued range.

Ulta Beauty Inc (ULTA) has a current Price-to-Book (P/B) ratio of 8.92. Compared to its 3-year average P/B ratio of 9.73 , the current P/B ratio is approximately -8.29% higher. Relative to its 5-year average P/B ratio of 10.13, the current P/B ratio is about -11.90% higher. Ulta Beauty Inc (ULTA) has a Forward Free Cash Flow (FCF) yield of approximately 0.04%. Compared to its 3-year average FCF yield of 4.71%, the current FCF yield is approximately -99.13% lower. Relative to its 5-year average FCF yield of 4.63% , the current FCF yield is about -99.11% lower.

8.92

P/B

Median3y

9.73

Median5y

10.13

0.04

FCF Yield

Median3y

4.71

Median5y

4.63

Competitors Valuation Multiple

The average P/S ratio for ULTA's competitors is 256.45, providing a benchmark for relative valuation. Ulta Beauty Inc Corp (ULTA) exhibits a P/S ratio of 517.79, which is 101.91% above the industry average. Given its robust revenue growth of 9.26%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Ultrapar Participacoes SA

DICK'S Sporting Goods Inc

Caseys General Stores Inc

Performance Decomposition

Market capitalization of ULTA increased by 33.92% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 15.25 to 19.85.

The secondary factor is the Revenue Growth, contributed 9.26%to the performance.

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

9.26%

2.55B → 2.79B

Revenue Growth

-5.45%

9.90 → 9.36

Margin Expansion

30.11%

15.25 → 19.85

P/E Change

33.92%