Adtran Networks Valuation

Is ADV 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: Insufficient data to calculate ADV's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate ADV's fair value for valuation analysis.


Key Valuation Metric

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

Key metric: As ADV is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for ADV. This is calculated by dividing ADV's market cap by their current revenue.
What is ADV's PS Ratio?
PS Ratio2.1x
Sales€481.90m
Market Cap€1.03b

Price to Sales Ratio vs Peers

How does ADV's PS Ratio compare to its peers?

The above table shows the PS ratio for ADV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.3x
FEW Funkwerk
1xn/a€165.2m
CEK CeoTronics
1.4x10.3%€44.7m
GGS Gigaset
0.03x5.6%€9.1m
JY0 ParTec
6.7x41.2%€680.0m
ADV Adtran Networks
2.1x4.6%€1.0b

Price-To-Sales vs Peers: ADV is good value based on its Price-To-Sales Ratio (2.1x) compared to the peer average (2.3x).


Price to Sales Ratio vs Industry

How does ADV's PS Ratio compare vs other companies in the European Communications Industry?

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
ADV 2.1xIndustry Avg. 1.1xNo. of Companies8PS00.81.62.43.24+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ADV is expensive based on its Price-To-Sales Ratio (2.1x) compared to the European Communications industry average (1.1x).


Price to Sales Ratio vs Fair Ratio

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

ADV PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.1x
Fair PS Ratio0.7x

Price-To-Sales vs Fair Ratio: ADV is expensive based on its Price-To-Sales Ratio (2.1x) compared to the estimated Fair Price-To-Sales Ratio (0.7x).


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.


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