UL Solutions Valuation

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

Below Fair Value: ULS ($51.74) is trading below our estimate of fair value ($60.83)

Significantly Below Fair Value: ULS 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 ULS?

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

The above table shows the Price to Earnings ratio for ULS. This is calculated by dividing ULS's market cap by their current earnings.
What is ULS's PE Ratio?
PE Ratio	34.2x
Earnings	US$303.00m
Market Cap	US$10.12b

ULS 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	19.9x
PEG Ratio	3.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ULS 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	48.6x
CACI CACI International	21.9x	7.9%	US$10.0b
KBR KBR	24.3x	22.9%	US$7.7b
AMTM Amentum Holdings	20.8x	n/a	US$5.5b
PSN Parsons	127.4x	64.7%	US$10.0b
ULS UL Solutions	34.2x	8.9%	US$10.1b

Price-To-Earnings vs Peers: ULS is good value based on its Price-To-Earnings Ratio (34.2x) compared to the peer average (48.6x).

Price to Earnings Ratio vs Industry

How does ULS's PE Ratio compare vs other companies in the US Professional Services Industry?

10 Companies	Price / Earnings	Estimated Growth	Market Cap
CNDT Conduent	1.3x	-104.3%	US$589.99m
CIH China Index Holdings	3.5x	n/a	US$87.15m
ALJJ ALJ Regional Holdings	0.7x	n/a	US$70.26m
STCN Steel Connect	3x	n/a	US$59.66m

10 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: ULS is expensive based on its Price-To-Earnings Ratio (34.2x) compared to the US Professional Services industry average (23.8x).

Price to Earnings Ratio vs Fair Ratio

What is ULS'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.

ULS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	34.2x
Fair PE Ratio	26.8x

Price-To-Earnings vs Fair Ratio: ULS is expensive based on its Price-To-Earnings Ratio (34.2x) compared to the estimated Fair Price-To-Earnings Ratio (26.8x).

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 ULS 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	US$51.74	US$56.20 +8.6%	9.0%	US$62.00	US$45.00	n/a	10
Nov ’25	US$51.60	US$53.40 +3.5%	11.7%	US$62.00	US$40.00	n/a	10
Oct ’25	US$49.16	US$49.71 +1.1%	13.8%	US$58.10	US$40.00	n/a	10
Sep ’25	US$54.54	US$50.65 -7.1%	14.1%	US$60.00	US$40.00	n/a	11
Aug ’25	US$51.42	US$50.46 -1.9%	14.8%	US$60.00	US$38.00	n/a	11
Jul ’25	US$41.97	US$41.30 -1.6%	4.6%	US$45.00	US$38.00	n/a	11
Jun ’25	US$38.57	US$41.63 +7.9%	4.0%	US$45.00	US$40.00	n/a	10

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