AZEK Valuation
Is AZEK undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
2/6Valuation Score 2/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for AZEK?
Other financial metrics that can be useful for relative valuation.
| What is AZEK's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$3.61b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 3.2x |
| Enterprise Value/EBITDA | 22x |
| PEG Ratio | 4.1x |
Price to Sales Ratio vs Peers
How does AZEK's PS Ratio compare to its peers?
| Company | PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 2.5x | ||
AWI Armstrong World Industries | 2.3x | 4.1% | US$2.9b |
AAON AAON | 5x | 14.6% | US$4.9b |
SSD Simpson Manufacturing | 2.4x | 1.3% | US$5.2b |
REZI Resideo Technologies | 0.4x | 2.9% | US$2.4b |
AZEK AZEK | 2.8x | 7.0% | US$3.6b |
Price-To-Sales vs Peers: AZEK is expensive based on its Price-To-Sales Ratio (2.8x) compared to the peer average (2.5x).
Price to Earnings Ratio vs Industry
How does AZEK's PE Ratio compare vs other companies in the US Building Industry?
Price-To-Sales vs Industry: AZEK is expensive based on its Price-To-Sales Ratio (2.8x) compared to the US Building industry average (1x)
Price to Sales Ratio vs Fair Ratio
What is AZEK'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.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 2.8x |
| Fair PS Ratio | 1.2x |
Price-To-Sales vs Fair Ratio: AZEK is expensive based on its Price-To-Sales Ratio (2.8x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).
Share Price vs Fair Value
What is the Fair Price of AZEK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: AZEK ($23.91) is trading below our estimate of fair value ($25.99)
Significantly Below Fair Value: AZEK is trading below fair value, but not by a significant amount.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | US$23.91 | US$29.90 +25.1% | 11.7% | US$34.00 | US$17.00 | n/a | 20 |
| May ’24 | US$27.38 | US$29.55 +7.9% | 12.5% | US$34.00 | US$18.00 | n/a | 20 |
| Apr ’24 | US$23.54 | US$29.15 +23.8% | 12.4% | US$34.00 | US$18.00 | n/a | 20 |
| Mar ’24 | US$23.74 | US$29.15 +22.8% | 12.4% | US$34.00 | US$18.00 | n/a | 20 |
| Feb ’24 | US$25.00 | US$24.70 -1.2% | 13.1% | US$30.00 | US$16.00 | n/a | 20 |
| Jan ’24 | US$20.32 | US$22.90 +12.7% | 14.9% | US$30.00 | US$16.00 | n/a | 20 |
| Dec ’23 | US$20.21 | US$22.45 +11.1% | 14.1% | US$30.00 | US$16.00 | n/a | 20 |
| Nov ’23 | US$17.27 | US$24.00 +39.0% | 13.2% | US$30.00 | US$18.00 | n/a | 20 |
| Oct ’23 | US$16.62 | US$25.45 +53.1% | 11.3% | US$30.00 | US$20.00 | n/a | 20 |
| Sep ’23 | US$18.28 | US$25.45 +39.2% | 11.3% | US$30.00 | US$20.00 | n/a | 20 |
| Aug ’23 | US$20.86 | US$27.42 +31.5% | 28.5% | US$57.00 | US$20.00 | n/a | 19 |
| Jul ’23 | US$17.39 | US$26.06 +49.8% | 14.3% | US$33.00 | US$20.00 | n/a | 18 |
| Jun ’23 | US$20.67 | US$27.83 +34.7% | 13.0% | US$34.00 | US$20.00 | n/a | 18 |
| May ’23 | US$21.24 | US$37.61 +77.1% | 23.1% | US$57.00 | US$25.00 | US$27.38 | 18 |
| Apr ’23 | US$24.84 | US$44.56 +79.4% | 14.1% | US$57.00 | US$35.00 | US$23.54 | 16 |
| Mar ’23 | US$28.05 | US$45.75 +63.1% | 11.7% | US$57.00 | US$36.00 | US$23.74 | 16 |
| Feb ’23 | US$34.48 | US$52.00 +50.8% | 9.3% | US$58.00 | US$41.00 | US$25.00 | 16 |
| Jan ’23 | US$46.24 | US$52.80 +14.2% | 6.7% | US$58.00 | US$47.00 | US$20.32 | 15 |
| Dec ’22 | US$38.60 | US$52.67 +36.4% | 6.5% | US$58.00 | US$47.00 | US$20.21 | 15 |
| Nov ’22 | US$37.34 | US$52.36 +40.2% | 6.5% | US$60.00 | US$46.00 | US$17.27 | 14 |
| Oct ’22 | US$36.34 | US$52.93 +45.6% | 6.6% | US$60.00 | US$46.00 | US$16.62 | 14 |
| Sep ’22 | US$43.06 | US$52.93 +22.9% | 6.6% | US$60.00 | US$46.00 | US$18.28 | 14 |
| Aug ’22 | US$36.37 | US$52.27 +43.7% | 4.8% | US$56.00 | US$48.00 | US$20.86 | 15 |
| Jul ’22 | US$41.44 | US$52.80 +27.4% | 5.3% | US$58.00 | US$48.00 | US$17.39 | 15 |
| Jun ’22 | US$42.46 | US$52.80 +24.4% | 5.3% | US$58.00 | US$48.00 | US$20.67 | 15 |
| May ’22 | US$48.28 | US$51.00 +5.6% | 8.6% | US$56.00 | US$38.00 | US$21.24 | 15 |
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.