ADT Inc.

NYSE:ADT Stock Report

Market Cap: US$6.8b

ADT Valuation

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

Below Fair Value: ADT ($7.54) is trading below our estimate of fair value ($16.65)

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

Key Valuation Metric

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

Key metric: As ADT is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for ADT. This is calculated by dividing ADT's market cap by their current revenue.
What is ADT's PS Ratio?
PS Ratio1.3x
SalesUS$5.14b
Market CapUS$6.78b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for ADT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.5x
HRB H&R Block
2.2x2.7%US$7.7b
FTDR Frontdoor
2.4x4.8%US$4.3b
SCI Service Corporation International
3x3.5%US$12.4b
MCW Mister Car Wash
2.6x8.3%US$2.5b
ADT ADT
1.3x2.6%US$6.8b

Price-To-Sales vs Peers: ADT is good value based on its Price-To-Sales Ratio (1.3x) compared to the peer average (2.5x).

Price to Sales Ratio vs Industry

How does ADT's PS Ratio compare vs other companies in the US Consumer Services Industry?

14 CompaniesPrice / SalesEstimated GrowthMarket Cap
WW WW International
0.1x-3.7%US$75.87m
MYND Mynd.ai
0.2xn/aUS$71.48m
BEDU Bright Scholar Education Holdings
0.2xn/aUS$55.29m
BODI Beachbody Company
0.09x-12.9%US$43.78m
ADT 1.3xIndustry Avg. 1.3xNo. of Companies14PS012345+
14 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ADT is good value based on its Price-To-Sales Ratio (1.3x) compared to the US Consumer Services industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

What is ADT'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.

ADT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.3x
Fair PS Ratio2.4x

Price-To-Sales vs Fair Ratio: ADT is good value based on its Price-To-Sales Ratio (1.3x) compared to the estimated Fair Price-To-Sales Ratio (2.4x).

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 ADT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$7.54
US$8.54
+13.3%
9.4%US$9.20US$7.00n/a5
Nov ’25US$7.25
US$8.54
+17.8%
9.4%US$9.20US$7.00n/a5
Oct ’25US$7.05
US$9.03
+28.1%
25.4%US$14.00US$7.00n/a6
Sep ’25US$7.29
US$9.03
+23.9%
25.4%US$14.00US$7.00n/a6
Aug ’25US$7.09
US$9.15
+29.1%
29.3%US$15.00US$7.00n/a6
Jul ’25US$7.42
US$9.48
+27.8%
27.8%US$15.00US$7.00n/a6
Jun ’25US$7.11
US$9.48
+33.4%
27.8%US$15.00US$7.00n/a6
May ’25US$6.50
US$9.31
+43.3%
26.6%US$15.00US$7.00n/a7
Apr ’25US$6.49
US$9.39
+44.6%
26.0%US$15.00US$7.00n/a7
Mar ’25US$7.30
US$9.53
+30.5%
24.4%US$15.00US$8.00n/a7
Feb ’25US$6.57
US$9.27
+41.1%
22.4%US$14.00US$7.50n/a7
Jan ’25US$6.82
US$9.42
+38.1%
23.4%US$14.00US$7.50n/a6
Dec ’24US$6.18
US$9.42
+52.4%
23.4%US$14.00US$7.50n/a6
Nov ’24US$5.58
US$9.63
+72.6%
23.7%US$14.50US$8.00US$7.256
Oct ’24US$6.00
US$9.38
+56.4%
18.8%US$13.00US$8.00US$7.056
Sep ’24US$6.43
US$9.38
+45.9%
18.8%US$13.00US$8.00US$7.296
Aug ’24US$6.41
US$9.68
+51.1%
19.2%US$13.50US$8.00US$7.096
Jul ’24US$6.03
US$9.60
+59.2%
17.6%US$13.00US$8.00US$7.426
Jun ’24US$5.65
US$9.60
+69.9%
17.6%US$13.00US$8.00US$7.116
May ’24US$6.66
US$10.17
+52.7%
17.4%US$13.00US$8.00US$6.506
Apr ’24US$7.23
US$10.17
+40.6%
17.4%US$13.00US$8.00US$6.496
Mar ’24US$7.60
US$10.17
+33.8%
17.4%US$13.00US$8.00US$7.306
Feb ’24US$8.79
US$10.17
+15.7%
17.4%US$13.00US$8.00US$6.576
Jan ’24US$9.07
US$10.00
+10.3%
18.3%US$13.00US$8.00US$6.826
Dec ’23US$9.68
US$10.00
+3.3%
18.3%US$13.00US$8.00US$6.186
Nov ’23US$8.45
US$9.80
+16.0%
19.8%US$13.00US$8.00US$5.585

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

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