Advanced Drainage Systems Valuation

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

WMS * (MX$3058.7) is trading below our estimate of [[fair value]] (MX$3661.23)

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: WMS * (MX$3058.7) is trading below our estimate of fair value (MX$3661.23)

Significantly Below Fair Value: WMS * 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 WMS *?

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

The above table shows the Price to Earnings ratio for WMS *. This is calculated by dividing WMS *'s market cap by their current earnings.
What is WMS *'s PE Ratio?
PE Ratio	20.8x
Earnings	US$492.25m
Market Cap	US$10.22b

WMS * 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	3.8x
Enterprise Value/EBITDA	12.8x
PEG Ratio	3.6x

Price to Earnings Ratio vs Peers

How does WMS *'s PE Ratio compare to its peers?

The above table shows the PE ratio for WMS * 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	40.4x
LAMOSA * Grupo Lamosa. de	71x	38.6%	Mex$40.5b
CERAMIC B Internacional de Cerámica. de	50.1x	n/a	Mex$13.5b
ELEMAT * Elementia Materiales S. A. B. de C. V	16x	n/a	Mex$11.5b
AGUA * Grupo Rotoplas. de	24.7x	16.7%	Mex$8.9b
WMS * Advanced Drainage Systems	20.8x	5.8%	Mex$10.2b

Price-To-Earnings vs Peers: WMS * is good value based on its Price-To-Earnings Ratio (20.8x) compared to the peer average (48.6x).

Price to Earnings Ratio vs Industry

How does WMS *'s PE Ratio compare vs other companies in the Global Building Industry?

8 Companies	Price / Earnings	Estimated Growth	Market Cap

8 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: WMS * is expensive based on its Price-To-Earnings Ratio (20.8x) compared to the Global Building industry average (18.1x).

Price to Earnings Ratio vs Fair Ratio

What is WMS *'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.

WMS * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	20.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate WMS *'s Price-To-Earnings Fair Ratio for valuation analysis.

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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