VVV Valuation

Valvoline Inc

Add to Watchlist

Advanced Chart

39.630

+0.3(0.763%)1D

Overview
Forecast
Valuation
Earnings

VVV Relative Valuation

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

Historical Valuation

Valvoline Inc (VVV) is now in the Undervalued zone, suggesting that its current forward PE ratio of 21.90 is considered Undervalued compared with the five-year average of 20.35. The fair price of Valvoline Inc (VVV) is between 44.29 to 59.37 according to relative valuation methord. Compared to the current price of 39.63 USD , Valvoline Inc is Undervalued By 10.51%.

Relative Value

Fair Zone

44.29-59.37

Current Price：39.63

10.51%

Undervalued

21.90

Trailing

Forward

12.18

EV/EBITDA

Valvoline Inc. (VVV) has a current EV/EBITDA of 12.18. The 5-year average EV/EBITDA is 13.41. The thresholds are as follows: Strongly Undervalued below 7.24, Undervalued between 7.24 and 10.32, Fairly Valued between 16.49 and 10.32, Overvalued between 16.49 and 19.57, and Strongly Overvalued above 19.57. The current Forward EV/EBITDA of 12.18 falls within the Historic Trend Line -Fairly Valued range.

16.52

EV/EBIT

Valvoline Inc. (VVV) has a current EV/EBIT of 16.52. The 5-year average EV/EBIT is 16.87. The thresholds are as follows: Strongly Undervalued below 8.19, Undervalued between 8.19 and 12.53, Fairly Valued between 21.21 and 12.53, Overvalued between 21.21 and 25.55, and Strongly Overvalued above 25.55. The current Forward EV/EBIT of 16.52 falls within the Historic Trend Line -Fairly Valued range.

2.64

Valvoline Inc. (VVV) has a current PS of 2.64. The 5-year average PS is 2.55. The thresholds are as follows: Strongly Undervalued below 0.82, Undervalued between 0.82 and 1.68, Fairly Valued between 3.41 and 1.68, Overvalued between 3.41 and 4.27, and Strongly Overvalued above 4.27. The current Forward PS of 2.64 falls within the Historic Trend Line -Fairly Valued range.

10.35

P/OCF

Valvoline Inc. (VVV) has a current P/OCF of 10.35. The 5-year average P/OCF is 15.40. The thresholds are as follows: Strongly Undervalued below 3.80, Undervalued between 3.80 and 9.60, Fairly Valued between 21.21 and 9.60, Overvalued between 21.21 and 27.01, and Strongly Overvalued above 27.01. The current Forward P/OCF of 10.35 falls within the Historic Trend Line -Fairly Valued range.

35.47

P/FCF

Valvoline Inc. (VVV) has a current P/FCF of 35.47. The 5-year average P/FCF is 41.90. The thresholds are as follows: Strongly Undervalued below -16.35, Undervalued between -16.35 and 12.78, Fairly Valued between 71.03 and 12.78, Overvalued between 71.03 and 100.15, and Strongly Overvalued above 100.15. The current Forward P/FCF of 35.47 falls within the Historic Trend Line -Fairly Valued range.

Valvoline Inc (VVV) has a current Price-to-Book (P/B) ratio of 16.09. Compared to its 3-year average P/B ratio of 33.53 , the current P/B ratio is approximately -52.01% higher. Relative to its 5-year average P/B ratio of 26.42, the current P/B ratio is about -39.08% higher. Valvoline Inc (VVV) has a Forward Free Cash Flow (FCF) yield of approximately 0.90%. Compared to its 3-year average FCF yield of -0.46%, the current FCF yield is approximately -296.22% lower. Relative to its 5-year average FCF yield of 1.71% , the current FCF yield is about -47.34% lower.

16.09

P/B

Median3y

33.53

Median5y

26.42

0.90

FCF Yield

Median3y

-0.46

Median5y

1.71

Competitors Valuation Multiple

The average P/S ratio for VVV's competitors is 1.81, providing a benchmark for relative valuation. Valvoline Inc Corp (VVV) exhibits a P/S ratio of 2.64, which is 45.71% above the industry average. Given its robust revenue growth of 4.18%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Adtalem Global Education Inc

Life Time Group Holdings Inc

Global Business Travel Group Inc

Peloton Interactive Inc

1.42

-5.70%

3.45B

Performance Decomposition

Market capitalization of VVV decreased by 6.09% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 11.44 to 12.98.

The secondary factor is the Revenue Growth, contributed 4.18%to the performance.

Overall, the performance of VVV in the past 1 year is driven by Margin Expansion. Which is more sustainable.

4.18%

421.40M → 439.00M

Revenue Growth

13.46%

11.44 → 12.98

Margin Expansion

-23.73%

24.29 → 18.53

P/E Change

-6.09%