ADT Inc. (ADT) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+338.8%

$43.31

vs $9.87 price

Levered DCF

$31.54

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

0.66

Distress zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	11.21×	12.34×	-37.89×	47.74×	-20.51×	-9.57×	-13.91×	-7.42×
P/B	1.78×	1.64×	1.64×	2.24×	2×	1.96×	1.86×	1.06×
P/S	1.31×	1.27×	1.34×	1.49×	1.22×	1.12×	1.16×	0.98×
EV / EBITDA	5.49×	5.36×	5.49×	7.07×	7.62×	8.29×	7.46×	7.21×
Gross margin	49.3%	50.7%	51.1%	42.5%	32.3%	33.6%	32.5%	35.1%
Operating margin	26.0%	25.2%	26.2%	13.3%	1.0%	3.0%	6.6%	7.7%
Net margin	11.6%	10.2%	-3.6%	2.6%	-6.4%	-11.9%	-8.3%	-13.3%
Current ratio	0.93×	0.8×	0.68×	0.65×	0.58×	0.75×	0.56×	0.84×
Debt / equity	2.03×	2.05×	2.07×	2.86×	2.98×	3.13×	3.04×	2.37×
Interest coverage	3.25×	2.79×	2.14×	2.62×	0.12×	0.23×	0.55×	0.53×
Dividend yield	2.8%	2.9%	2.1%	1.7%	1.8%	1.8%	9.5%	1.8%
Payout ratio	31.4%	36.4%	-77.0%	95.8%	-34.1%	-17.3%	-133.2%	-13.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	15.8%	13.2%	-4.4%	3.9%	-10.5%	-20.8%	-13.3%	-14.4%
Return on invested capital	6.4%	6.2%	6.1%	3.2%	0.3%	0.9%	1.8%	2.1%
Return on assets	3.8%	3.1%	-1.0%	0.7%	-2.0%	-3.9%	-2.6%	-3.5%
Free cash flow yield	19.5%	19.2%	13.7%	12.7%	12.1%	13.3%	19.8%	24.1%
Earnings yield	8.9%	8.0%	-2.7%	1.7%	-5.3%	-10.6%	-7.2%	-13.6%
Enterprise value	$14.3B	$13.8B	$14B	$17.3B	$16.2B	$15.3B	$15.6B	$14.1B
Net debt / EBITDA	2.91×	2.94×	3.06×	3.92×	4.56×	5.06×	4.62×	4.91×
Cash conversion cycle (days)	41	37	27	12	23	12	9	7