Adecco Group Valuation

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

AHEX.F ($25.45) is trading below our estimate of [[fair value]] ($65.06)

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: AHEX.F ($25.45) is trading below our estimate of fair value ($65.06)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AHEX.F?

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

The above table shows the Price to Earnings ratio for AHEX.F. This is calculated by dividing AHEX.F's market cap by their current earnings.
What is AHEX.F's PE Ratio?
PE Ratio	13.9x
Earnings	€298.00m
Market Cap	€4.14b

AHEX.F 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	8.9x
PEG Ratio	0.8x

Price to Earnings Ratio vs Peers

How does AHEX.F's PE Ratio compare to its peers?

The above table shows the PE ratio for AHEX.F 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	34.4x
TNET TriNet Group	17.4x	2.8%	US$4.7b
KFY Korn Ferry	22x	24.7%	US$3.9b
NSP Insperity	23.1x	-0.4%	US$2.7b
MAN ManpowerGroup	74.9x	41.2%	US$2.8b
AHEX.F Adecco Group	13.9x	17.4%	US$3.8b

Price-To-Earnings vs Peers: AHEX.F is good value based on its Price-To-Earnings Ratio (13.9x) compared to the peer average (34.4x).

Price to Earnings Ratio vs Industry

How does AHEX.F'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$574.00m
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	3.1x	n/a	US$64.78m

10 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: AHEX.F is good value based on its Price-To-Earnings Ratio (13.9x) compared to the US Professional Services industry average (23.8x).

Price to Earnings Ratio vs Fair Ratio

What is AHEX.F'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.

AHEX.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	13.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate AHEX.F'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?

The above table shows the analyst AHEX.F 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$25.45	US$34.75 +36.6%	14.8%	US$41.26	US$27.32	n/a	14
Nov ’25	US$29.34	US$39.02 +33.0%	16.0%	US$47.54	US$28.80	n/a	14
Oct ’25	n/a	US$40.97 0%	15.6%	US$51.60	US$29.31	n/a	14
Sep ’25	n/a	US$40.86 0%	16.0%	US$51.16	US$29.06	n/a	14
Aug ’25	n/a	US$41.96 0%	15.9%	US$52.47	US$30.48	n/a	14
Jul ’25	US$33.31	US$42.08 +26.3%	14.8%	US$51.53	US$33.39	n/a	14
Jun ’25	n/a	US$42.35 0%	14.4%	US$52.06	US$33.73	n/a	14
May ’25	n/a	US$42.33 0%	14.3%	US$51.51	US$33.38	n/a	14
Apr ’25	n/a	US$42.74 0%	13.8%	US$51.77	US$33.51	n/a	13
Mar ’25	US$42.10	US$44.66 +6.1%	12.0%	US$52.09	US$37.37	n/a	12
Feb ’25	n/a	US$45.69 0%	12.4%	US$52.89	US$36.84	n/a	13
Jan ’25	n/a	US$45.52 0%	11.7%	US$52.04	US$36.89	n/a	13
Dec ’24	n/a	US$45.52 0%	11.7%	US$52.04	US$36.89	n/a	13
Nov ’24	n/a	US$42.83 0%	12.3%	US$51.19	US$35.90	US$29.34	12
Oct ’24	n/a	US$42.99 0%	12.5%	US$50.89	US$32.52	n/a	12
Sep ’24	US$41.43	US$43.69 +5.5%	13.8%	US$51.78	US$33.14	n/a	11
Aug ’24	n/a	US$38.73 0%	14.3%	US$49.52	US$32.78	n/a	12
Jul ’24	n/a	US$38.08 0%	14.9%	US$48.82	US$31.82	US$33.31	12
Jun ’24	n/a	US$37.65 0%	13.9%	US$48.77	US$31.43	n/a	11
May ’24	n/a	US$38.25 0%	13.6%	US$49.49	US$31.90	n/a	11
Apr ’24	n/a	US$40.78 0%	29.2%	US$76.71	US$31.38	n/a	12
Mar ’24	US$36.06	US$39.83 +10.4%	29.6%	US$75.44	US$30.86	US$42.10	12
Feb ’24	n/a	US$41.52 0%	30.5%	US$78.15	US$30.64	n/a	12
Jan ’24	US$33.46	US$41.57 +24.2%	28.3%	US$74.78	US$29.85	n/a	11
Dec ’23	US$33.64	US$40.66 +20.9%	28.8%	US$73.51	US$29.39	n/a	11
Nov ’23	n/a	US$40.07 0%	28.8%	US$70.89	US$28.53	n/a	12

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.