ARB Corporation Limited

CHIA:ARB Stock Report

Market Cap: AU$3.4b

ARB Valuation

Is ARB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ARB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ARB (A$41.7) is trading above our estimate of fair value (A$29.59)

Significantly Below Fair Value: ARB is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ARB?

Key metric: As ARB is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ARB. This is calculated by dividing ARB's market cap by their current earnings.
What is ARB's PE Ratio?
PE Ratio33.6x
EarningsAU$102.68m
Market CapAU$3.45b

Price to Earnings Ratio vs Peers

How does ARB's PE Ratio compare to its peers?

The above table shows the PE ratio for ARB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.7x
AOV Amotiv
14.4x8.3%AU$1.4b
PWH PWR Holdings
32x15.2%AU$774.3m
SFC Schaffer
11xn/aAU$297.2m
AHL Adrad Holdings
9.4x11.4%AU$56.1m
ARB ARB
33.6x8.4%AU$3.4b

Price-To-Earnings vs Peers: ARB is expensive based on its Price-To-Earnings Ratio (33.6x) compared to the peer average (16.7x).

Price to Earnings Ratio vs Industry

How does ARB's PE Ratio compare vs other companies in the Global Auto Components Industry?

43 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ARB 33.6xIndustry Avg. 18.6xNo. of Companies112PE01632486480+
43 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ARB is expensive based on its Price-To-Earnings Ratio (33.6x) compared to the Global Auto Components industry average (18.6x).

Price to Earnings Ratio vs Fair Ratio

What is ARB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ARB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio33.6x
Fair PE Ratio21.3x

Price-To-Earnings vs Fair Ratio: ARB is expensive based on its Price-To-Earnings Ratio (33.6x) compared to the estimated Fair Price-To-Earnings Ratio (21.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ARB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$41.70
AU$40.64
-2.6%
17.2%AU$50.27AU$27.00n/a14
Nov ’25AU$41.42
AU$40.68
-1.8%
17.2%AU$50.27AU$27.00n/a14
Oct ’25AU$47.89
AU$39.30
-17.9%
16.5%AU$48.00AU$26.00n/a13
Sep ’25AU$42.58
AU$38.26
-10.1%
16.4%AU$48.00AU$26.00n/a14
Aug ’25AU$43.10
AU$36.71
-14.8%
14.0%AU$44.39AU$26.00n/a14
Jul ’25AU$36.99
AU$36.57
-1.1%
14.5%AU$44.39AU$26.00n/a13
Jun ’25AU$38.12
AU$36.79
-3.5%
14.9%AU$44.39AU$26.00n/a12
May ’25AU$37.85
AU$36.15
-4.5%
16.1%AU$45.69AU$26.00n/a11
Apr ’25AU$41.44
AU$36.11
-12.9%
16.5%AU$45.69AU$26.00n/a10
Mar ’25AU$41.38
AU$35.66
-13.8%
17.3%AU$45.69AU$26.00n/a10
Feb ’25AU$33.52
AU$31.00
-7.5%
12.0%AU$36.00AU$24.50n/a9
Jan ’25AU$35.98
AU$31.00
-13.8%
12.0%AU$36.00AU$24.50n/a9
Dec ’24AU$31.43
AU$31.00
-1.4%
12.0%AU$36.00AU$24.50n/a9
Nov ’24AU$29.95
AU$31.00
+3.5%
12.0%AU$36.00AU$24.50AU$41.429
Oct ’24AU$31.34
AU$29.68
-5.3%
13.6%AU$36.00AU$24.40AU$47.899
Sep ’24AU$33.75
AU$29.69
-12.0%
12.9%AU$36.00AU$24.40AU$42.5810
Aug ’24AU$31.44
AU$28.82
-8.3%
11.7%AU$34.00AU$24.00AU$43.1010
Jul ’24AU$28.61
AU$29.79
+4.1%
11.3%AU$34.00AU$24.00AU$36.999
Jun ’24AU$28.45
AU$30.68
+7.9%
8.8%AU$34.00AU$24.50AU$38.129
May ’24AU$32.42
AU$31.41
-3.1%
10.2%AU$35.39AU$24.50AU$37.858
Apr ’24AU$31.60
AU$31.41
-0.6%
10.2%AU$35.39AU$24.50AU$41.448
Mar ’24AU$31.25
AU$31.41
+0.5%
10.2%AU$35.39AU$24.50AU$41.388
Feb ’24AU$31.58
AU$31.30
-0.9%
14.4%AU$39.25AU$23.50AU$33.528
Jan ’24AU$25.79
AU$31.30
+21.4%
14.4%AU$39.25AU$23.50AU$35.988
Dec ’23AU$29.26
AU$31.30
+7.0%
14.4%AU$39.25AU$23.50AU$31.438
Nov ’23AU$28.60
AU$31.30
+9.4%
14.4%AU$39.25AU$23.50AU$29.958

Analyst Forecast: Target price is lower than the current share price.

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