Advanced Drainage Valuation

WMS Stock  USD 174.30  0.64  0.37%   
At this time, the firm appears to be overvalued. Advanced Drainage Systems shows a prevailing Real Value of $147.83 per share. The current price of the firm is $174.3. Our model approximates the value of Advanced Drainage Systems from analyzing the firm fundamentals such as Current Valuation of 14.54 B, profit margin of 0.18 %, and Return On Equity of 0.51 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Advanced Drainage's valuation include:
Price Book
10.6016
Enterprise Value
14.5 B
Enterprise Value Ebitda
15.1494
Price Sales
4.4833
Forward PE
23.2558
Overvalued
Today
174.30
Please note that Advanced Drainage's price fluctuation is very steady at this time. Calculation of the real value of Advanced Drainage Systems is based on 3 months time horizon. Increasing Advanced Drainage's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Advanced Drainage Systems is useful when determining the fair value of the Advanced stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Advanced Drainage. Since Advanced Drainage is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Advanced Stock. However, Advanced Drainage's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  174.3 Real  147.83 Target  151.0 Hype  174.45 Naive  167.63
The real value of Advanced Stock, also known as its intrinsic value, is the underlying worth of Advanced Drainage Systems Company, which is reflected in its stock price. It is based on Advanced Drainage's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Advanced Drainage's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Advanced Drainage's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
146.36
Downside
147.83
Real Value
191.73
Upside
Estimating the potential upside or downside of Advanced Drainage Systems helps investors to forecast how Advanced stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Advanced Drainage more accurately as focusing exclusively on Advanced Drainage's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
1.942.072.19
Details
Hype
Prediction
LowEstimatedHigh
172.98174.45175.92
Details
Potential
Annual Dividend
LowForecastedHigh
0.350.350.35
Details
9 Analysts
Consensus
LowTarget PriceHigh
137.41151.00167.61
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Advanced Drainage's intrinsic value based on its ongoing forecasts of Advanced Drainage's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Advanced Drainage's closest peers. When choosing an evaluation method for Advanced Drainage Systems, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Advanced Drainage Investments

(163.45 Million)

Advanced Valuation Trend

Knowing Advanced Drainage's actual value is paramount for traders to make sound investment determinations. Advanced Drainage's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Advanced Drainage's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Advanced Drainage's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Advanced Market Cap

Advanced Drainage Systems is rated first in market capitalization category among related companies. Market capitalization of Industrials industry is at this time estimated at about 24.03 Billion. Advanced Drainage totals roughly 13.5 Billion in market capitalization claiming about 56% of equities under Industrials industry.
Capitalization  Workforce  Valuation  Total debt  Revenue

Advanced Drainage Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Advanced Drainage's current stock value. Our valuation model uses many indicators to compare Advanced Drainage value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Advanced Drainage competition to find correlations between indicators driving Advanced Drainage's intrinsic value. More Info.
Advanced Drainage Systems is rated first in price to earning category among related companies. It is rated first in price to book category among related companies fabricating about  0.26  of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Advanced Drainage Systems is roughly  3.78 . Price To Book Ratio is likely to gain to 11.10 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Advanced Drainage by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Advanced Drainage's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Advanced Drainage's earnings, one of the primary drivers of an investment's value.

Advanced Drainage's Earnings Breakdown by Geography

Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Advanced Drainage's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Advanced Drainage and how it compares across the competition.

About Advanced Drainage Valuation

The stock valuation mechanism determines the current worth of Advanced Drainage Systems on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Advanced Drainage Systems. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Advanced Drainage Systems based exclusively on its fundamental and basic technical indicators. By analyzing Advanced Drainage's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Advanced Drainage's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Advanced Drainage. We calculate exposure to Advanced Drainage's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Advanced Drainage's related companies.
Last ReportedProjected for Next Year
Gross Profit1.1 B1.1 B
Pretax Profit Margin 0.23  0.24 
Operating Profit Margin 0.25  0.26 
Net Profit Margin 0.18  0.19 
Gross Profit Margin 0.38  0.20 

8 Steps to conduct Advanced Drainage's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Advanced Drainage's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Advanced Drainage's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Advanced Drainage's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Advanced Drainage's revenue streams: Identify Advanced Drainage's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Advanced Drainage's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Advanced Drainage's growth potential: Evaluate Advanced Drainage's management, business model, and growth potential.
  • Determine Advanced Drainage's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Advanced Drainage's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Advanced Drainage's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Advanced Drainage's value is low or high relative to the company's performance and growth projections. Determining the market value of Advanced Drainage can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Advanced Drainage represents a small ownership stake in the entity. As a stockholder of Advanced, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Advanced Drainage Dividends Analysis For Valuation

Dividends Paid is likely to gain to about (41.8 M) in 2024. Dividend Yield is likely to drop to 0 in 2024. At this time, Advanced Drainage's Retained Earnings are comparatively stable compared to the past year. Retained Earnings Total Equity is likely to gain to about 756.2 M in 2024, whereas Earnings Yield is likely to drop 0.03 in 2024.
Last ReportedProjected for Next Year
Dividends Paid-44 M-41.8 M
Dividend Yield 0  0 
Dividend Payout Ratio 0.09  0.08 
Dividend Paid And Capex Coverage Ratio(5.13)(5.39)
There are various types of dividends Advanced Drainage can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Advanced shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Advanced Drainage Systems directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Advanced pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Advanced Drainage by the value of the dividends paid out.

Advanced Drainage Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Advanced Drainage does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding79 M
Quarterly Earnings Growth Y O Y0.154
Forward Price Earnings23.2558

Advanced Drainage Current Valuation Indicators

Valuation refers to the process of determining the present value of Advanced Drainage Systems and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Advanced we look at many different elements of the entity such as Advanced's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Advanced Drainage's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Advanced Drainage's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Advanced Drainage, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Advanced Drainage's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Advanced Drainage's worth.
When determining whether Advanced Drainage Systems is a strong investment it is important to analyze Advanced Drainage's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Advanced Drainage's future performance. For an informed investment choice regarding Advanced Stock, refer to the following important reports:
Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Advanced Drainage Systems. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.
You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

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When running Advanced Drainage's price analysis, check to measure Advanced Drainage's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Advanced Drainage is operating at the current time. Most of Advanced Drainage's value examination focuses on studying past and present price action to predict the probability of Advanced Drainage's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Advanced Drainage's price. Additionally, you may evaluate how the addition of Advanced Drainage to your portfolios can decrease your overall portfolio volatility.
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Is Advanced Drainage's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Advanced Drainage. If investors know Advanced will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Advanced Drainage listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.154
Dividend Share
0.56
Earnings Share
6.45
Revenue Per Share
36.734
Quarterly Revenue Growth
0.059
The market value of Advanced Drainage Systems is measured differently than its book value, which is the value of Advanced that is recorded on the company's balance sheet. Investors also form their own opinion of Advanced Drainage's value that differs from its market value or its book value, called intrinsic value, which is Advanced Drainage's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Advanced Drainage's market value can be influenced by many factors that don't directly affect Advanced Drainage's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Advanced Drainage's value and its price as these two are different measures arrived at by different means. Investors typically determine if Advanced Drainage is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Advanced Drainage's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.