UL Solutions Valuation

Q: What is the Fair Price of 72R when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

72R (€50.5) is trading below our estimate of [[fair value]] (€61.18)

Is 72R undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

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 72R when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 72R (€50.5) is trading below our estimate of fair value (€61.18)

Significantly Below Fair Value: 72R is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 72R?

Key metric: As 72R is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 72R. This is calculated by dividing 72R's market cap by their current earnings.
What is 72R's PE Ratio?
PE Ratio	35.7x
Earnings	US$303.00m
Market Cap	US$10.81b

72R 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/Revenue	4.1x
Enterprise Value/EBITDA	21.2x
PEG Ratio	4x

Price to Earnings Ratio vs Peers

How does 72R's PE Ratio compare to its peers?

The above table shows the PE ratio for 72R vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	20.7x
BDT Bertrandt	11x	64.3%	€182.4m
CACI CACI International	23.1x	8.0%	US$10.5b
ITRK Intertek Group	23.6x	10.2%	UK£7.3b
BVI Bureau Veritas	25.2x	9.6%	€12.7b
72R UL Solutions	35.7x	8.9%	€10.8b

Price-To-Earnings vs Peers: 72R is expensive based on its Price-To-Earnings Ratio (35.7x) compared to the peer average (20.6x).

Price to Earnings Ratio vs Industry

How does 72R's PE Ratio compare vs other companies in the European Professional Services Industry?

5 Companies	Price / Earnings	Estimated Growth	Market Cap

5 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 72R is expensive based on its Price-To-Earnings Ratio (35.7x) compared to the European Professional Services industry average (18.3x).

Price to Earnings Ratio vs Fair Ratio

What is 72R'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.

72R PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	35.7x
Fair PE Ratio	14.3x

Price-To-Earnings vs Fair Ratio: 72R is expensive based on its Price-To-Earnings Ratio (35.7x) compared to the estimated Fair Price-To-Earnings Ratio (14.3x).

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 72R forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	€50.50	€53.38 +5.7%	9.0%	€58.89	€42.75	n/a	10
Nov ’25	€47.40	€49.28 +4.0%	11.7%	€57.21	€36.91	n/a	10
Oct ’25	€43.60	€44.91 +3.0%	13.8%	€52.49	€36.14	n/a	10
Sep ’25	€49.20	€46.40 -5.7%	14.1%	€54.97	€36.65	n/a	11
Aug ’25	€46.40	€46.76 +0.8%	14.8%	€55.60	€35.21	n/a	11
Jul ’25	€39.20	€38.47 -1.9%	4.6%	€41.91	€35.39	n/a	11
Jun ’25	€36.40	€38.35 +5.4%	4.0%	€41.45	€36.85	n/a	10

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