Advanced Drainage Systems

OVERVALUEDWMS · NYSE · Industrials
WMS·NYSE·Industrials
OVERVALUED
Advanced Drainage Systems
17.8%downside
MARKET PRICE
$146.45
FAIR PRICE
$120.43
MARGIN
$26.02
UNDERVALUEDFAIROVERVALUED
P/E RATIO
31.5x
DIV. YIELD
0.48%
ROE
23.1%
MARKET CAP
$12B
FPI
fairpriceindex.com

FAIR PRICE VALUATION

17.8%downside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

MARKET PRICE

$146.45

FAIR PRICE

$120.43

MARGIN

$26.02

UNDERVALUEDFAIROVERVALUED

P/E Ratio

31.5x

What is P/E? →

Div. Yield

0.48%

ROE

23.1%

Strong

Market Cap

$12B

Large-cap

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FPI RATING

5.7/ 10

Consistent growth trajectory, but volatile earnings pattern and expensive valuation relative to fundamentals.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$96.34CONSERVATIVE ENTRY
$120.43FAIR PRICE
$146.45MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$96.34

Fair price × 0.80

DISTANCE

34.2%

Price to entry level

At the current price of $146.45, WMS trades 34.2% above the conservative entry level of $96.34. This entry level represents a 20% margin of safety below the calculated fair price of $120.43 — a buffer that accounts for estimation uncertainty in the valuation model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

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P/E RATIO HISTORY

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METHODOLOGY

How we calculate WMS's fair price

Advanced Drainage Systems's fair price of $120.43 is derived from a blended model that combines DCF analysis (50%), relative valuation against Industrials peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $146.45, WMS trades 17.8% above its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting WMS's risk profile.

RELATIVE · 30%

Comparing WMS's valuation multiples against Industrials peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for WMS, weighted by recency and analyst accuracy.

TRY IT YOURSELF

Want to test your own assumptions? Use our free calculators to estimate WMS's fair value with your own inputs.

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FAQ

What is the fair price of WMS?+

Based on our blended model combining DCF analysis (50%), relative valuation against Industrials peers (30%), and analyst consensus (20%), the fair price for Advanced Drainage Systems is $120.43. At the current market price of $146.45, WMS trades 17.8% above its calculated fair value.

Is WMS overvalued or undervalued?+

Advanced Drainage Systems is currently overvalued based on our valuation model. The stock trades at $146.45, which is 17.8% above the fair price of $120.43. The P/E ratio of 31.5x is a key metric in the valuation.

What is the margin of safety for WMS?+

With a 20% margin of safety applied to the fair price of $120.43, the conservative entry level for WMS is $96.34. At the current market price of $146.45, the stock trades 34.2% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is WMS's fair price updated?+

We update fair price calculations for WMS daily after market close. The current fair price of $120.43 incorporates the latest market data and sector multiples.

What factors affect WMS's fair price calculation?+

WMS's fair price of $120.43 is derived from DCF analysis (50% weight), relative valuation against Industrials peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 31.5x, ROE of 23.1%, and dividend yield of 0.48%.

Is WMS a good buy right now?+

At $146.45, WMS trades 17.8% above our fair value estimate of $120.43. The stock is currently overvalued. ROE stands at 23.1% (strong). Fair Price Index provides valuation data — always do your own research before investing.

Does WMS pay dividends?+

WMS has a dividend yield of 0.48%.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.