Advanced Drainage Systems, Inc.

DB:6DA Stock Report

Market Cap: €11.8b

Advanced Drainage Systems Valuation

Is 6DA 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 6DA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6DA (€151.8) is trading above our estimate of fair value (€111.32)

Significantly Below Fair Value: 6DA is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6DA?

Other financial metrics that can be useful for relative valuation.

6DA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.7x
Enterprise Value/EBITDA15.8x
PEG Ratio3.3x

Price to Earnings Ratio vs Peers

How does 6DA's PE Ratio compare to its peers?

The above table shows the PE ratio for 6DA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.9x
ST5 STEICO
16.6x4.3%€498.6m
VIB3 Villeroy & Boch
7.5x7.6%€453.6m
BNR Brenntag
15.1x7.7%€10.8b
KBX Knorr-Bremse
20.4x9.9%€11.3b
6DA Advanced Drainage Systems
25.2x7.7%€12.6b

Price-To-Earnings vs Peers: 6DA is expensive based on its Price-To-Earnings Ratio (25.2x) compared to the peer average (14.9x).


Price to Earnings Ratio vs Industry

How does 6DA's PE Ratio compare vs other companies in the European Building Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 6DA is expensive based on its Price-To-Earnings Ratio (25.2x) compared to the European Building industry average (16.4x).


Price to Earnings Ratio vs Fair Ratio

What is 6DA'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.

6DA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.2x
Fair PE Ratio20.1x

Price-To-Earnings vs Fair Ratio: 6DA is expensive based on its Price-To-Earnings Ratio (25.2x) compared to the estimated Fair Price-To-Earnings Ratio (20.1x).


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 6DA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€151.80
€167.23
+10.2%
8.4%€180.38€136.23n/a8
Apr ’25€158.20
€165.01
+4.3%
8.0%€175.43€134.59n/a9
Mar ’25€149.80
€165.01
+10.2%
8.0%€175.43€134.59n/a9
Feb ’25€121.80
€136.83
+12.3%
5.8%€151.54€125.98n/a9
Jan ’25€126.40
€133.39
+5.5%
7.8%€152.59€112.14n/a9
Dec ’24€114.60
€134.43
+17.3%
7.5%€152.03€113.79n/a8
Nov ’24€101.20
€142.97
+41.3%
5.2%€153.38€127.82n/a8
Oct ’24€107.60
€137.33
+27.6%
6.3%€149.32€122.59n/a9
Sep ’24€120.40
€137.33
+14.1%
6.3%€149.32€122.59n/a9
Aug ’24€114.40
€114.70
+0.3%
11.1%€135.60€92.21n/a8
Jul ’24€104.20
€108.11
+3.8%
7.2%€120.02€93.45n/a7
Jun ’24€90.70
€108.19
+19.3%
7.9%€121.14€94.32n/a7
May ’24€76.60
€101.71
+32.8%
8.5%€114.10€85.80n/a7
Apr ’24€76.18
€104.87
+37.7%
8.6%€116.18€87.36€158.206
Mar ’24€82.38
€109.06
+32.4%
13.5%€137.02€87.62€149.806
Feb ’24€94.84
€112.87
+19.0%
11.4%€130.41€87.56€121.806
Jan ’24€76.12
€113.88
+49.6%
10.5%€131.04€90.79€126.406
Dec ’23€91.40
€117.27
+28.3%
10.4%€135.87€94.14€114.606
Nov ’23€117.35
€161.73
+37.8%
5.3%€171.96€146.37€101.206
Oct ’23€127.20
€160.28
+26.0%
7.7%€178.78€140.47€107.606
Sep ’23€133.50
€160.28
+20.1%
7.7%€178.78€140.47€120.406
Aug ’23€115.55
€123.02
+6.5%
5.1%€134.80€117.82€114.405
Jul ’23€87.70
€128.71
+46.8%
10.8%€151.54€113.17€104.205
Jun ’23€103.75
€129.13
+24.5%
9.2%€147.21€109.94€90.705
May ’23€96.90
€135.40
+39.7%
8.8%€146.43€113.89€76.605
Apr ’23€107.85
€135.40
+25.5%
8.8%€146.43€113.89€76.185

Analyst Forecast: Target price is less than 20% higher than the current share price.


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