American Vanguard Valuation

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

Below Fair Value: AVD ($6.19) is trading below our estimate of fair value ($21.67)

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

Key Valuation Metric

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

Key metric: As AVD is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for AVD. This is calculated by dividing AVD's market cap by their current revenue.
What is AVD's PS Ratio?
PS Ratio	0.3x
Sales	US$553.84m
Market Cap	US$182.80m

AVD 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	0.7x
Enterprise Value/EBITDA	18.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for AVD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	2x
IPI Intrepid Potash	1.6x	3.9%	US$332.7m
BIOX Bioceres Crop Solutions	0.9x	9.6%	US$399.7m
MULG Muliang Viagoo Technology	4.1x	n/a	US$49.1m
UAN CVR Partners	1.4x	n/a	US$753.5m
AVD American Vanguard	0.3x	4.8%	US$182.8m

Price-To-Sales vs Peers: AVD is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (2x).

Price to Sales Ratio vs Industry

How does AVD's PS Ratio compare vs other companies in the US Chemicals Industry?

10 Companies	Price / Sales	Estimated Growth	Market Cap
TSE Trinseo	0.03x	5.0%	US$117.53m
ALTO Alto Ingredients	0.1x	3.1%	US$106.54m
BON Bon Natural Life	0.2x	n/a	US$5.36m
ABLT American Biltrite	0.02x	n/a	US$2.91m

10 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: AVD is good value based on its Price-To-Sales Ratio (0.3x) compared to the US Chemicals industry average (1.4x).

Price to Sales Ratio vs Fair Ratio

What is AVD'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.

AVD PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.3x
Fair PS Ratio	0.9x

Price-To-Sales vs Fair Ratio: AVD is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).

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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