Advanced Drainage Systems, Inc. (WMS) 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

-13.3%

$121.24

vs $139.82 price

Levered DCF

$178.63

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

4.44

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

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

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	25.02×	18.7×	26.13×	13.67×	36.9×	39.16×	-9.68×	19.31×
P/B	5.52×	5.21×	10.57×	7.09×	7.78×	6.91×	2.43×	3.08×
P/S	3.5×	2.9×	4.64×	2.26×	3.06×	3.66×	1.12×	1.08×
EV / EBITDA	13.99×	10.88×	15.61×	9.23×	16.83×	16.03×	9.77×	8.94×
Gross margin	36.3%	37.7%	39.9%	36.4%	28.9%	34.8%	29.7%	23.6%
Operating margin	22.5%	22.6%	25.5%	23.4%	14.9%	17.4%	-5.7%	9.3%
Net margin	14.0%	15.5%	17.7%	16.5%	9.8%	11.3%	-11.5%	5.6%
Current ratio	2.42×	3.33×	2.96×	2.69×	2.23×	2.33×	2.8×	2.26×
Debt / equity	0.93×	0.89×	1.08×	1.37×	0.88×	0.81×	1.51×	0.66×
Interest coverage	7.32×	7.16×	8.24×	10.25×	12.28×	9.66×	-1.15×	6.95×
Dividend yield	0.5%	0.6%	0.3%	0.6%	0.4%	0.4%	4.9%	1.7%
Payout ratio	13.2%	11.0%	8.6%	7.8%	13.6%	13.7%	-47.7%	33.6%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	22.1%	27.8%	40.4%	51.9%	24.9%	21.4%	-25.0%	16.0%
Return on invested capital	12.9%	14.9%	19.4%	21.7%	12.8%	11.7%	-4.4%	10.7%
Return on assets	9.5%	12.2%	15.6%	17.5%	10.2%	9.3%	-8.2%	7.5%
Free cash flow yield	5.3%	4.4%	4.0%	7.8%	1.5%	5.1%	12.7%	7.2%
Earnings yield	4.0%	5.3%	3.8%	7.3%	3.2%	3.1%	-10.3%	5.2%
Enterprise value	$12.2B	$9.4B	$14.2B	$8.1B	$9.4B	$7.9B	$2.9B	$1.8B
Net debt / EBITDA	1.79×	1.14×	0.96×	1.29×	1.68×	1.33×	3.38×	1.54×
Cash conversion cycle (days)	104	96	85	84	95	80	98	108