Archrock Fair Value
AR
The fair market value of AROC stock is 23.03 USD. Relative to the market price of 20.54 USD Archrock is undervalued by 12.1%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Archrock Valuation
Current AROC share ticker price is 20.54 USD.
The fair value level of 23.03 USD can be considered as an effective entry point for long-term investors to start investing in AROC stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 12% lower its fair value
Current price is 14% higher its minimum value
Current price is 81% lower its maximum value
Market price:
AROC stock is undervalued
It means the current price may concern as a Moderate Risk Entry Point
Archrock Inc Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
42.61
2
Median P/E over 5 years
26.33
3
Minimum P/E over 5 years
20.21
4
Earning per share (last 12 months)
0.87 USD
Maximum value
1
x
4
=
37.28 USD
Fair value
2
x
4
=
23.03 USD
Minimum value
3
x
4
=
17.69 USD
Archrock Inc price metrics
14.5
Annual return (geometric mean)
57.24
Risk (standard deviation) of returns
β
1.54
Beta (volatility compared to market)