WMS Relative Valuation
WMS'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, WMS is overvalued; if below, it's undervalued.
Historical Valuation
Advanced Drainage Systems Inc (WMS) is now in the Fair zone, suggesting that its current forward PE ratio of 24.43 is considered Fairly compared with the five-year average of 21.81. The fair price of Advanced Drainage Systems Inc (WMS) is between 112.19 to 153.44 according to relative valuation methord.
Relative Value
Fair Zone
112.19-153.44
Current Price：150.05
Fair
24.43
PE
1Y
3Y
5Y
Trailing
Forward
12.99
EV/EBITDA
Advanced Drainage Systems Inc. (WMS) has a current EV/EBITDA of 12.99. The 5-year average EV/EBITDA is 12.04. The thresholds are as follows: Strongly Undervalued below 8.83, Undervalued between 8.83 and 10.44, Fairly Valued between 13.65 and 10.44, Overvalued between 13.65 and 15.26, and Strongly Overvalued above 15.26. The current Forward EV/EBITDA of 12.99 falls within the Historic Trend Line -Fairly Valued range.
17.66
EV/EBIT
Advanced Drainage Systems Inc. (WMS) has a current EV/EBIT of 17.66. The 5-year average EV/EBIT is 15.84. The thresholds are as follows: Strongly Undervalued below 10.09, Undervalued between 10.09 and 12.97, Fairly Valued between 18.72 and 12.97, Overvalued between 18.72 and 21.59, and Strongly Overvalued above 21.59. The current Forward EV/EBIT of 17.66 falls within the Historic Trend Line -Fairly Valued range.
3.83
PS
Advanced Drainage Systems Inc. (WMS) has a current PS of 3.83. The 5-year average PS is 3.19. The thresholds are as follows: Strongly Undervalued below 2.08, Undervalued between 2.08 and 2.64, Fairly Valued between 3.75 and 2.64, Overvalued between 3.75 and 4.31, and Strongly Overvalued above 4.31. The current Forward PS of 3.83 falls within the Overvalued range.
15.57
P/OCF
Advanced Drainage Systems Inc. (WMS) has a current P/OCF of 15.57. The 5-year average P/OCF is 14.94. The thresholds are as follows: Strongly Undervalued below 9.52, Undervalued between 9.52 and 12.23, Fairly Valued between 17.65 and 12.23, Overvalued between 17.65 and 20.36, and Strongly Overvalued above 20.36. The current Forward P/OCF of 15.57 falls within the Historic Trend Line -Fairly Valued range.
21.68
P/FCF
Advanced Drainage Systems Inc. (WMS) has a current P/FCF of 21.68. The 5-year average P/FCF is 21.67. The thresholds are as follows: Strongly Undervalued below 12.42, Undervalued between 12.42 and 17.05, Fairly Valued between 26.29 and 17.05, Overvalued between 26.29 and 30.92, and Strongly Overvalued above 30.92. The current Forward P/FCF of 21.68 falls within the Historic Trend Line -Fairly Valued range.
Advanced Drainage Systems Inc (WMS) has a current Price-to-Book (P/B) ratio of 5.97. Compared to its 3-year average P/B ratio of 7.69 , the current P/B ratio is approximately -22.42% higher. Relative to its 5-year average P/B ratio of 8.48, the current P/B ratio is about -29.59% higher. Advanced Drainage Systems Inc (WMS) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 5.11%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.39% , the current FCF yield is about -100.00% lower.
5.97
P/B
Median3y
7.69
Median5y
8.48
4.48
FCF Yield
Median3y
5.11
Median5y
4.39
Competitors Valuation Multiple
The average P/S ratio for WMS's competitors is , providing a benchmark for relative valuation. Advanced Drainage Systems Inc Corp (WMS) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 8.66%, 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 WMS increased by 29.80% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 22.99 to 25.60.
The secondary factor is the Margin Expansion, contributed 9.79%to the performance.
Overall, the performance of WMS in the past 1 year is driven by P/E Change. Which is more unsustainable.
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