VMI Valuation

Valmont Industries Inc

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367.290

+0.87(0.237%)1D

Overview
Forecast
Valuation
Earnings

VMI Relative Valuation

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

Historical Valuation

Valmont Industries Inc (VMI) is now in the Fair zone, suggesting that its current forward PE ratio of 18.64 is considered Fairly compared with the five-year average of 18.14. The fair price of Valmont Industries Inc (VMI) is between 325.68 to 411.96 according to relative valuation methord.

Relative Value

Fair Zone

325.68-411.96

Current Price：367.29

Fair

18.64

Trailing

Forward

12.29

EV/EBITDA

Valmont Industries Inc. (VMI) has a current EV/EBITDA of 12.29. The 5-year average EV/EBITDA is 11.46. The thresholds are as follows: Strongly Undervalued below 8.73, Undervalued between 8.73 and 10.10, Fairly Valued between 12.83 and 10.10, Overvalued between 12.83 and 14.19, and Strongly Overvalued above 14.19. The current Forward EV/EBITDA of 12.29 falls within the Historic Trend Line -Fairly Valued range.

14.10

EV/EBIT

Valmont Industries Inc. (VMI) has a current EV/EBIT of 14.10. The 5-year average EV/EBIT is 14.30. The thresholds are as follows: Strongly Undervalued below 9.90, Undervalued between 9.90 and 12.10, Fairly Valued between 16.50 and 12.10, Overvalued between 16.50 and 18.70, and Strongly Overvalued above 18.70. The current Forward EV/EBIT of 14.10 falls within the Historic Trend Line -Fairly Valued range.

1.72

Valmont Industries Inc. (VMI) has a current PS of 1.72. The 5-year average PS is 1.36. The thresholds are as follows: Strongly Undervalued below 0.96, Undervalued between 0.96 and 1.16, Fairly Valued between 1.56 and 1.16, Overvalued between 1.56 and 1.76, and Strongly Overvalued above 1.76. The current Forward PS of 1.72 falls within the Overvalued range.

15.07

P/OCF

Valmont Industries Inc. (VMI) has a current P/OCF of 15.07. The 5-year average P/OCF is 15.24. The thresholds are as follows: Strongly Undervalued below 5.38, Undervalued between 5.38 and 10.31, Fairly Valued between 20.16 and 10.31, Overvalued between 20.16 and 25.09, and Strongly Overvalued above 25.09. The current Forward P/OCF of 15.07 falls within the Historic Trend Line -Fairly Valued range.

21.98

P/FCF

Valmont Industries Inc. (VMI) has a current P/FCF of 21.98. The 5-year average P/FCF is -1.64. The thresholds are as follows: Strongly Undervalued below -199.92, Undervalued between -199.92 and -100.78, Fairly Valued between 97.50 and -100.78, Overvalued between 97.50 and 196.64, and Strongly Overvalued above 196.64. The current Forward P/FCF of 21.98 falls within the Historic Trend Line -Fairly Valued range.

Valmont Industries Inc (VMI) has a current Price-to-Book (P/B) ratio of 4.73. Compared to its 3-year average P/B ratio of 3.87 , the current P/B ratio is approximately 22.25% higher. Relative to its 5-year average P/B ratio of 3.78, the current P/B ratio is about 25.21% higher. Valmont Industries Inc (VMI) has a Forward Free Cash Flow (FCF) yield of approximately 7.51%. Compared to its 3-year average FCF yield of 4.98%, the current FCF yield is approximately 50.76% lower. Relative to its 5-year average FCF yield of 3.85% , the current FCF yield is about 94.95% lower.

4.73

P/B

Median3y

3.87

Median5y

3.78

7.51

FCF Yield

Median3y

4.98

Median5y

3.85

Competitors Valuation Multiple

The average P/S ratio for VMI's competitors is 24.73, providing a benchmark for relative valuation. Valmont Industries Inc Corp (VMI) exhibits a P/S ratio of 1.72, which is -93.05% above the industry average. Given its robust revenue growth of 1.04%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

VMI.N

Valmont Industries Inc

Mueller Industries Inc

Gibraltar Industries Inc

Insteel Industries Inc

1.00

23.40%

734.47M

Performance Decomposition

Market capitalization of VMI increased by 26.64% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 14.82 to 33.91.

The secondary factor is the Revenue Growth, contributed 1.04%to the performance.

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

1.04%

1.04B → 1.05B

Revenue Growth

-103.19%

9.73 → -0.31

Margin Expansion

128.79%

14.82 → 33.91

P/E Change

26.64%