Advanced Drainage Fair Value
WM
The fair market value of WMS stock is 167.46 USD. Relative to the market price of 132.83 USD Advanced Drainage is undervalued by 25.9%
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
Advanced Drainage Valuation
Current WMS share ticker price is 132.83 USD.
The fair value level of 167.46 USD can be considered as an effective entry point for long-term investors to start investing in WMS 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 26% lower its fair value
Current price is 12% higher its minimum value
Current price is 95% lower its maximum value
Market price:
WMS stock is undervalued
It means the current price may concern as a Moderate Risk Entry Point
Advanced Drainage Systems 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
40.62
2
Median P/E over 5 years
26.22
3
Minimum P/E over 5 years
18.28
4
Earning per share (last 12 months)
6.39 USD
Maximum value
1
x
4
=
259.48 USD
Fair value
2
x
4
=
167.46 USD
Minimum value
3
x
4
=
116.8 USD
Advanced Drainage Systems Inc price metrics
29.16
Annual return (geometric mean)
48.89
Risk (standard deviation) of returns
β
1.51
Beta (volatility compared to market)