Adecco Group Valuation

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

ADIA (€12.3) is trading below our estimate of [[fair value]] (€33.14)

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: ADIA (€12.3) is trading below our estimate of fair value (€33.14)

Significantly Below Fair Value: ADIA is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ADIA. This is calculated by dividing ADIA's market cap by their current earnings.
What is ADIA's PE Ratio?
PE Ratio	14.2x
Earnings	€298.00m
Market Cap	€4.23b

ADIA 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	0.3x
Enterprise Value/EBITDA	9x
PEG Ratio	0.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ADIA 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	14.7x
AAD Amadeus FiRe	12x	7.2%	€418.8m
GBF Bilfinger	7x	2.3%	€1.6b
TNET TriNet Group	17.5x	2.8%	US$4.6b
KFY Korn Ferry	22.3x	24.7%	US$4.1b
ADIA Adecco Group	14.2x	17.4%	€3.9b

Price-To-Earnings vs Peers: ADIA is good value based on its Price-To-Earnings Ratio (14.2x) compared to the peer average (14.7x).

Price to Earnings Ratio vs Industry

How does ADIA'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: ADIA is good value based on its Price-To-Earnings Ratio (14.2x) compared to the European Professional Services industry average (17.4x).

Price to Earnings Ratio vs Fair Ratio

What is ADIA'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.

ADIA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	14.2x
Fair PE Ratio	14.2x

Price-To-Earnings vs Fair Ratio: ADIA is expensive based on its Price-To-Earnings Ratio (14.2x) compared to the estimated Fair Price-To-Earnings Ratio (14.2x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.