Advanced Stock Valuation

WMS
 Stock
  

USD 95.33  1.18  1.22%   

How much is Advanced Drainage Systems worth today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Advanced Drainage, is its stock price multiplied by the total number of shares outstanding, calculating Advanced Drainage's enterprise value requires a different approach. It uses Advanced Drainage's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Advanced Drainage Free Cash Flow is relatively stable at the moment as compared to the past year. Advanced Drainage reported last year Free Cash Flow of 81.36 Million. As of 12/04/2022, Enterprise Value is likely to grow to about 2 B, while Tangible Asset Value is likely to drop slightly above 767.1 M.
Advanced Drainage Systems shows a prevailing Real Value of $112.88 per share. The current price of the firm is $95.33. At this time, the firm appears to be undervalued. Our model approximates the value of Advanced Drainage Systems from analyzing the firm fundamentals such as Current Valuation of 8.84 B, return on equity of 0.46 %, and Profit Margin of 0.14 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor buying undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
Advanced Drainage Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Advanced Drainage's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Advanced Most Recent Valuation Data

Dividend Share
0.46
Beta
1.36
change Receivables
-97 M
Fiscal Year End
March
property Plant And Equipment Net
619.4 M
Enterprise Value
8.8 B
Undervalued
Today 95.33
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.
112.88
Real Value
117.16
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 (1)
LowProjected EPSHigh
3.773.773.77
Details
Hype
Prediction
LowEstimated ValueHigh
89.8694.1498.42
Details
2 Analysts
Consensus
LowTarget PriceHigh
120.00136.00162.00
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 Valuation Drivers Correlation

Many accounts on the financial statements of Advanced Drainage Systems are highly interrelated and sometimes correlated. Consequently, when conducting Advanced's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Advanced
Click cells to compare fundamentals

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 11.19 Billion. Advanced Drainage totals roughly 7.9 Billion in market capitalization claiming about 71% of equities under Industrials industry.
Capitalization  Valuation  Workforce  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 second in price to earning category among related companies. It is rated first in five year return category among related companies reporting about  0.02  of Five Year Return per Price to Earning. The ratio of Price to Earning to Five Year Return for Advanced Drainage Systems is roughly  52.71 . 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.
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.
Fiscal Year End
March
Industry
Building Products & Equipment
Concentration
Building Products
Full Time Employees
5.6 K
Service Category
Building Products
Employer Id Number
51-0105665
Last ReportedProjected for 2022
Gross Profit256.8 M225 M
Profit Margin 9.80  10.57 
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

As of 12/04/2022, Preferred Dividends Income Statement Impact is likely to grow to about 4.3 M, while Payment of Dividends and Other Cash Distributions is likely to drop (20.2 M). . Advanced Drainage Earnings per Basic Share are relatively stable at the moment as compared to the past year. Advanced Drainage reported last year Earnings per Basic Share of 3.22. As of 12/04/2022, Earnings per Diluted Share is likely to grow to 3.40, while Earning Before Interest and Taxes EBIT is likely to drop slightly above 72.4 M.
Last ReportedProjected for 2022
Preferred Dividends Income Statement Impact4.2 M4.3 M
Payment of Dividends and Other Cash Distributions-18.7 M-20.2 M
Dividend Yield 0.0081  0.006789 
Dividends per Basic Common Share 0.18  0.15 
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 Valuation Growth Rates

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.
Quarterly Earnings Growth Y O Y1.045

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.
Check out Your Current Watchlist. You can also try Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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When running Advanced Drainage Systems 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 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 YOY
1.05
Market Capitalization
7.9 B
Quarterly Revenue Growth YOY
0.25
Return On Assets
0.15
Return On Equity
0.46
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 Advanced Drainage value 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.