WMS Valuation

Advanced Drainage Systems Inc

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141.960

+0.5(0.353%)1D

Overview
Forecast
Valuation
Earnings

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 24.18 is considered Fairly compared with the five-year average of 21.65. The fair price of Advanced Drainage Systems Inc (WMS) is between 116.32 to 155.94 according to relative valuation methord.

Relative Value

Fair Zone

116.32-155.94

Current Price：141.96

Fair

24.18

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 11.96. The thresholds are as follows: Strongly Undervalued below 8.71, Undervalued between 8.71 and 10.33, Fairly Valued between 13.58 and 10.33, Overvalued between 13.58 and 15.21, and Strongly Overvalued above 15.21. The current Forward EV/EBITDA of 12.99 falls within the Historic Trend Line -Fairly Valued range.

17.75

EV/EBIT

Advanced Drainage Systems Inc. (WMS) has a current EV/EBIT of 17.75. The 5-year average EV/EBIT is 15.87. The thresholds are as follows: Strongly Undervalued below 10.04, Undervalued between 10.04 and 12.95, Fairly Valued between 18.79 and 12.95, Overvalued between 18.79 and 21.71, and Strongly Overvalued above 21.71. The current Forward EV/EBIT of 17.75 falls within the Historic Trend Line -Fairly Valued range.

3.70

Advanced Drainage Systems Inc. (WMS) has a current PS of 3.70. The 5-year average PS is 3.13. The thresholds are as follows: Strongly Undervalued below 1.99, Undervalued between 1.99 and 2.56, Fairly Valued between 3.70 and 2.56, Overvalued between 3.70 and 4.28, and Strongly Overvalued above 4.28. The current Forward PS of 3.70 falls within the Historic Trend Line -Fairly Valued range.

15.53

P/OCF

Advanced Drainage Systems Inc. (WMS) has a current P/OCF of 15.53. The 5-year average P/OCF is 14.73. The thresholds are as follows: Strongly Undervalued below 9.02, Undervalued between 9.02 and 11.88, Fairly Valued between 17.58 and 11.88, Overvalued between 17.58 and 20.44, and Strongly Overvalued above 20.44. The current Forward P/OCF of 15.53 falls within the Historic Trend Line -Fairly Valued range.

21.33

P/FCF

Advanced Drainage Systems Inc. (WMS) has a current P/FCF of 21.33. The 5-year average P/FCF is 21.30. The thresholds are as follows: Strongly Undervalued below 11.36, Undervalued between 11.36 and 16.33, Fairly Valued between 26.27 and 16.33, Overvalued between 26.27 and 31.24, and Strongly Overvalued above 31.24. The current Forward P/FCF of 21.33 falls within the Historic Trend Line -Fairly Valued range.

Advanced Drainage Systems Inc (WMS) has a current Price-to-Book (P/B) ratio of 6.12. Compared to its 3-year average P/B ratio of 7.90 , the current P/B ratio is approximately -22.52% higher. Relative to its 5-year average P/B ratio of 8.53, the current P/B ratio is about -28.25% higher. Advanced Drainage Systems Inc (WMS) has a Forward Free Cash Flow (FCF) yield of approximately 4.23%. Compared to its 3-year average FCF yield of 5.09%, the current FCF yield is approximately -16.94% lower. Relative to its 5-year average FCF yield of 4.54% , the current FCF yield is about -6.77% lower.

6.12

P/B

Median3y

7.90

Median5y

8.53

4.23

FCF Yield

Median3y

5.09

Median5y

4.54

Competitors Valuation Multiple

The average P/S ratio for WMS's competitors is 2.84, providing a benchmark for relative valuation. Advanced Drainage Systems Inc Corp (WMS) exhibits a P/S ratio of 3.70, which is 30.16% above the industry average. Given its robust revenue growth of 1.78%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

WMS.N

Advanced Drainage Systems Inc

Armstrong World Industries Inc

Performance Decomposition

Market capitalization of WMS decreased by 9.88% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 815.34M to 829.88M.

The secondary factor is the P/E Change, contributed 1.15%to the performance.

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

1.78%

815.34M → 829.88M

Revenue Growth

-12.81%

19.91 → 17.36

Margin Expansion

1.15%

25.25 → 25.54

P/E Change

-9.88%