UL Solutions Inc. (ULS) 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

-65.2%

$26.18

vs $75.18 price

Levered DCF

$29.34

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

8.31

Safe zone

Rating

B+

Overall 3 / 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
P/E	48.68×	30.6×	26.88×	23.77×	31.2×	30.12×	28.41×
P/B	12.56×	11.04×	10.69×	6.63×	3.02×	3.1×	0×
P/S	5.19×	3.48×	2.61×	2.77×	2.78×	3.04×	3.02×
EV / EBITDA	23.73×	16.53×	14.46×	13.69×	13.94×	12.84×	0×
Gross margin	49.1%	48.1%	47.2%	47.9%	46.8%	44.8%	44.7%
Operating margin	17.1%	16.1%	15.1%	16.3%	11.4%	15.8%	13.5%
Net margin	10.6%	11.4%	9.7%	11.6%	8.9%	10.0%	10.6%
Current ratio	1.32×	1.24×	1.34×	1.44×	2.52×	2.38×	0×
Debt / equity	0.66×	1.03×	1.63×	0.63×	0.07×	0.07×	0×
Interest coverage	12.74×	8.4×	11.57×	24.24×	287×	363×	0×
Dividend yield	0.7%	1.0%	9.7%	22.9%	2.9%	0.1%	0.1%
Payout ratio	32.0%	30.7%	261.5%	546.1%	89.3%	3.9%	2.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	25.8%	36.1%	39.8%	27.8%	9.7%	10.3%	0.0%
Return on invested capital	17.7%	17.9%	15.6%	16.1%	8.6%	9.1%	0.0%
Return on assets	11.1%	11.6%	9.5%	10.8%	6.1%	6.5%	0.0%
Free cash flow yield	2.5%	2.9%	3.6%	3.0%	4.5%	5.3%	3.4%
Earnings yield	2.1%	3.3%	3.7%	4.2%	3.2%	3.3%	3.5%
Enterprise value	$16.4B	$10.6B	$7.7B	$7.3B	$5.8B	$6.2B	$0
Net debt / EBITDA	0.78×	0.99×	1.4×	0.63×	-2.82×	-1.68×	0×
Cash conversion cycle (days)	32	30	37	42	32	52	0