Downer EDI Ltd
ASX:DOW

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Downer EDI Ltd
ASX:DOW
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Price: 7.64 AUD 2.69%
Market Cap: AU$5.1B

EV/OCF

8.9
Current
6%
More Expensive
vs 3-y average of 8.4

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
8.9
=
Enterprise Value
AU$5.2B
/
Operating Cash Flow
AU$569.2m

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
8.9
=
Enterprise Value
AU$5.2B
/
Operating Cash Flow
AU$569.2m

Valuation Scenarios

Downer EDI Ltd is trading above its 3-year average

If EV/OCF returns to its 3-Year Average (8.4), the stock would be worth AU$7.21 (6% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-7%
Maximum Upside
+58%
Average Upside
13%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 8.9 AU$7.64
0%
3-Year Average 8.4 AU$7.21
-6%
5-Year Average 8.3 AU$7.1
-7%
Industry Average 9.5 AU$8.15
+7%
Country Average 14.1 AU$12.07
+58%

Forward EV/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
Close
Market Cap EV/OCF P/E
AU
Downer EDI Ltd
ASX:DOW
5.1B AUD 8.9 31.2
US
Cintas Corp
NASDAQ:CTAS
69.8B USD 32.6 36.9
US
Copart Inc
NASDAQ:CPRT
32.4B USD 15.2 20.8
AU
Brambles Ltd
ASX:BXB
30.6B AUD 12 21.9
US
RB Global Inc
F:J1F
16.5B EUR 21.7 50.3
CA
Ritchie Bros Auctioneers Inc
TSX:RBA
26.4B CAD 21.8 50.4
US
Aurora Innovation Inc
NASDAQ:AUR
10B USD -15.2 -12.3
FR
Spie SA
PAR:SPIE
7.8B EUR 10 44.4
FR
Elis SA
PAR:ELIS
6.1B EUR 6.4 16.7
DK
Iss A/S
CSE:ISS
37.7B DKK 11.4 14.3
US
IAA Inc
F:3NI
4.9B EUR 16.8 19.8
P/E Multiple
Earnings Growth PEG
AU
Downer EDI Ltd
ASX:DOW
Average P/E: 30.7
31.2
38%
0.8
US
Cintas Corp
NASDAQ:CTAS
36.9
11%
3.4
US
Copart Inc
NASDAQ:CPRT
20.8
5%
4.2
AU
Brambles Ltd
ASX:BXB
21.9
10%
2.2
US
RB Global Inc
F:J1F
50.3
48%
1
CA
Ritchie Bros Auctioneers Inc
TSX:RBA
50.4
48%
1
US
Aurora Innovation Inc
NASDAQ:AUR
Negative Multiple: -12.3 N/A N/A
FR
Spie SA
PAR:SPIE
44.4
54%
0.8
FR
Elis SA
PAR:ELIS
16.7
14%
1.2
DK
Iss A/S
CSE:ISS
14.3
18%
0.8
US
I
IAA Inc
F:3NI
19.8
N/A N/A

Market Distribution

Lower than 72% of companies in Australia
Percentile
28th
Based on 1 376 companies
28th percentile
8.9
Low
0 — 9.3
Typical Range
9.3 — 24.1
High
24.1 —
Distribution Statistics
Australia
Min 0
30th Percentile 9.3
Median 14.1
70th Percentile 24.1
Max 9 251.5

Downer EDI Ltd
Glance View

Downer EDI Ltd, founded in Australia, has evolved into a formidable player within the infrastructure and service sectors, with its roots tracing back to major engineering undertakings and groundbreaking construction projects. This transformation into a leading integrated services provider speaks volumes about its ability to adapt and thrive amid ever-changing market demands. Downer's core offerings center around urban services, entailing the maintenance and enhancement of essential infrastructure in transportation, telecommunications, utilities, and facilities management. By leveraging its rich history and engineering expertise, Downer positions itself as a critical contributor to the upkeep and modernization of cities, crafting sustainable solutions that cater to both government and private sector clients. The company's revenue streams are drawn from a broad spectrum of contracts, which include long-term agreements to manage and maintain public assets. For instance, Downer is heavily involved in ensuring the smooth operation of rail networks, roads, and public transport systems, which, in turn, generates steady cash flow and bolsters its financial stability. In addition, its prowess in providing cutting-edge design and manufacturing solutions for circumspect sectors like energy and technology allows it to capture lucrative niches in an ever-diversifying economy. As Downer EDI Ltd adeptly maneuvers through competitive landscapes, its commitment to delivering quality and efficiency remains at the forefront, enabling it to sustain growth while continually exploring new opportunities within the realms of essential services provision.

DOW Intrinsic Value
8.51 AUD
Undervaluation 10%
Intrinsic Value
Price AU$7.64
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