WMS PE Ratio & Valuation,Is WMS Overvalued

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 24.37 is considered Fairly compared with the five-year average of 21.79. The fair price of Advanced Drainage Systems Inc (WMS) is between 112.16 to 152.96 according to relative valuation methord.

Relative Value

Fair Zone

112.16-152.96

Current Price：148.23

Fair

24.37

12.80

EV/EBITDA

Advanced Drainage Systems Inc. (WMS) has a current EV/EBITDA of 12.80. The 5-year average EV/EBITDA is 12.05. The thresholds are as follows: Strongly Undervalued below 8.84, Undervalued between 8.84 and 10.44, Fairly Valued between 13.66 and 10.44, Overvalued between 13.66 and 15.26, and Strongly Overvalued above 15.26. The current Forward EV/EBITDA of 12.80 falls within the Historic Trend Line -Fairly Valued range.

17.41

EV/EBIT

Advanced Drainage Systems Inc. (WMS) has a current EV/EBIT of 17.41. The 5-year average EV/EBIT is 15.79. The thresholds are as follows: Strongly Undervalued below 10.16, Undervalued between 10.16 and 12.97, Fairly Valued between 18.60 and 12.97, Overvalued between 18.60 and 21.41, and Strongly Overvalued above 21.41. The current Forward EV/EBIT of 17.41 falls within the Historic Trend Line -Fairly Valued range.

3.77

Advanced Drainage Systems Inc. (WMS) has a current PS of 3.77. The 5-year average PS is 3.21. The thresholds are as follows: Strongly Undervalued below 2.09, Undervalued between 2.09 and 2.65, Fairly Valued between 3.77 and 2.65, Overvalued between 3.77 and 4.33, and Strongly Overvalued above 4.33. The current Forward PS of 3.77 falls within the Overvalued range.

15.34

P/OCF

Advanced Drainage Systems Inc. (WMS) has a current P/OCF of 15.34. The 5-year average P/OCF is 14.97. The thresholds are as follows: Strongly Undervalued below 9.56, Undervalued between 9.56 and 12.26, Fairly Valued between 17.67 and 12.26, Overvalued between 17.67 and 20.38, and Strongly Overvalued above 20.38. The current Forward P/OCF of 15.34 falls within the Historic Trend Line -Fairly Valued range.

21.36

P/FCF

Advanced Drainage Systems Inc. (WMS) has a current P/FCF of 21.36. The 5-year average P/FCF is 21.74. The thresholds are as follows: Strongly Undervalued below 12.56, Undervalued between 12.56 and 17.15, Fairly Valued between 26.33 and 17.15, Overvalued between 26.33 and 30.92, and Strongly Overvalued above 30.92. The current Forward P/FCF of 21.36 falls within the Historic Trend Line -Fairly Valued range.

Advanced Drainage Systems Inc (WMS) has a current Price-to-Book (P/B) ratio of 5.95. Compared to its 3-year average P/B ratio of 7.70 , the current P/B ratio is approximately -22.65% higher. Relative to its 5-year average P/B ratio of 8.45, the current P/B ratio is about -29.54% higher. Advanced Drainage Systems Inc (WMS) has a Forward Free Cash Flow (FCF) yield of approximately 4.55%. Compared to its 3-year average FCF yield of 5.04%, the current FCF yield is approximately -9.81% lower. Relative to its 5-year average FCF yield of 4.36% , the current FCF yield is about 4.42% lower.

5.95

P/B

Median3y

7.70

Median5y

8.45

4.55

FCF Yield

Median3y

5.04

Median5y

4.36

Competitors Valuation Multiple

The average P/S ratio for WMS's competitors is 2.44, providing a benchmark for relative valuation. Advanced Drainage Systems Inc Corp (WMS) exhibits a P/S ratio of 3.77, which is 54.8% above the industry average. Given its robust revenue growth of 8.66%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of WMS increased by 22.60% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 16.76 to 18.40.

The secondary factor is the Revenue Growth, contributed 8.66%to the performance.

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

8.66%

782.61M → 850.38M

Revenue Growth

9.79%

16.76 → 18.40

Margin Expansion

4.15%

24.51 → 25.53

P/E Change

22.60%

120.91 → 148.23

Mkt Cap Growth

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Frequently Asked Questions

Is Advanced Drainage Systems Inc (WMS) currently overvalued or undervalued?

What is Advanced Drainage Systems Inc (WMS) fair value?

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. The fair price of Advanced Drainage Systems Inc (WMS) is between 112.16 to 152.96 according to relative valuation methord.

How does WMS's valuation metrics compare to the industry average?

The average P/S ratio for WMS's competitors is 2.44, providing a benchmark for relative valuation. Advanced Drainage Systems Inc Corp (WMS) exhibits a P/S ratio of 3.77, which is 54.80% above the industry average. Given its robust revenue growth of 8.66%, this premium appears unsustainable.

What is the current P/B ratio for Advanced Drainage Systems Inc (WMS) as of Jan 09 2026?

As of Jan 09 2026, Advanced Drainage Systems Inc (WMS) has a P/B ratio of 5.95. This indicates that the market values WMS at 5.95 times its book value.

What is the current FCF Yield for Advanced Drainage Systems Inc (WMS) as of Jan 09 2026?

As of Jan 09 2026, Advanced Drainage Systems Inc (WMS) has a FCF Yield of 4.55%. This means that for every dollar of Advanced Drainage Systems Inc’s market capitalization, the company generates 4.55 cents in free cash flow.

What is the current Forward P/E ratio for Advanced Drainage Systems Inc (WMS) as of Jan 09 2026?

As of Jan 09 2026, Advanced Drainage Systems Inc (WMS) has a Forward P/E ratio of 24.37. This means the market is willing to pay $24.37 for every dollar of Advanced Drainage Systems Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Advanced Drainage Systems Inc (WMS) as of Jan 09 2026?

As of Jan 09 2026, Advanced Drainage Systems Inc (WMS) has a Forward P/S ratio of 3.77. This means the market is valuing WMS at $3.77 for every dollar of expected revenue over the next 12 months.

WMS Valuation