NYSE
ULS
Last Price
US $87.56
KEY FIGURES
MKT CAP
$17.6B
EPS
TTM
$1.74
PEG
TTM
N/M
P/E
TTM
50.43x
P/S
TTM
5.67x
YIELD
0.63%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
28.68%
Return on equity
ROIC: 19.64%
Valuation History
50.2X
Price to Earnings
EV/EBITDA: 23.2X
Cash flow
Profit margin
5.82%
(FY vs FY)
EBITDA Y/Y
8.95%
(FY vs FY)
Cash flow Y/Y
1.83%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $87.56
-74.05%
Default assumptions
EBITDA Multiple
Fair Value
Market $87.56
-73.68%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
UL Solutions Inc. cash flow to debt ratio of 72.12% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.
Financial stability - Healthy cash flow growth.
UL Solutions Inc.'s free cash flow has increased 40.42% from $287.00M last year to $403.00M, signaling increasing performance
Financial stability - Healthy debt to equity ratio.
UL Solutions Inc.'s debt to equity ratio is 0.41, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial stability - Healthy debt to equity ratio development.
UL Solutions Inc.'s debt has decreased relative to shareholder equity from 1.03 last year to 0.41 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
UL Solutions Inc. has a net debt to EBITDA ratio of 0.73x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
UL Solutions Inc.'s interest coverage ratio of 14.90 indicates that earnings with good margin can cover interest payments on company debt
Financial risk - Profit margin growth.
UL Solutions Inc.'s profit margin has decreased (-1.08%) in the last year from 11.36% to 11.24%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
UL Solutions Inc.'s short-term assets of $1.00G exceed its short-term liabilities of $760.00M
Increasing performance - ROA.
UL Solutions Inc.'s return on assets of 11.81% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
UL Solutions Inc.'s return on equity of 28.68%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
UL Solutions Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
UL Solutions Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
UL Solutions Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
UL Solutions Inc. has a free cash flow yield of 2.29%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
UL Solutions Inc.'s yearly earnings has decreased -0.31% since last year from $326.00M to $325.00M, signaling decreasing performance
Increasing performance - Healthy revenue growth.
UL Solutions Inc.'s yearly revenue has increased 6.38% since last year from $2.87G to $3.05G, signaling increasing performance
Increasing performance - ROIC.
ROIC 19.64% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
UL Solutions Inc.'s 3-year revenue CAGR of 6.60% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
UL Solutions Inc. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
UL Solutions Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
UL Solutions Inc. is overvalued relative to its fair value price of 22.72 based on Discounted Cash Flow model
Overvalued - Earnings yield.
UL Solutions Inc. has an earnings yield of 1.98%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
UL Solutions Inc. is overvalued relative to its fair value price of 23.05 based on EBITDA multiple model
Overvalued - EV/EBITDA.
UL Solutions Inc. has an EV/EBITDA ratio of 24.59x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings
Overvalued - PEG ratio value.
UL Solutions Inc. has a PEG-ratio over 1 which is considered overvalued
Overvalued - P/B ratio.
UL Solutions Inc. has a price-to-book ratio of 13.17x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value
Undervalued - P/S ratio.
UL Solutions Inc. has a price-to-sales ratio of 5.67x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue