The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2026-06-28), Advanced Drainage Systems's share price is MXN2100.00.
Advanced Drainage Systems's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was MXN100.74. Therefore, Advanced Drainage Systems's PE Ratio for today is 20.85.
Warning Sign:
Advanced Drainage Systems Inc stock PE Ratio (=28.4) is close to 3-year high of 29.18.
During the past 13 years, Advanced Drainage Systems's highest PE Ratio was 64.46. The lowest was 12.79. And the median was 26.54.
During the past 13 years, Advanced Drainage Systems's highest 3-Year average EPS without NRI Growth Rate was 275.20% per year. The lowest was 0.70% per year. And the median was 30.25% per year.
Advanced Drainage Systems (MEX:WMS) PE Ratio Explanation
The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.
In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.
If a company loses money, the PE Ratio becomes meaningless.
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.
Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.
Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio.
PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.
Advanced Drainage Systems PE Ratio Related Terms
Advanced Drainage Systems PE Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Building Products & Equipment subindustry, Advanced Drainage Systems's PE Ratio, along with its competitors' market caps and PE Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Advanced Drainage Systems PE Ratio vs Construction Industry
For the Construction industry and Industrials sector, Advanced Drainage Systems's PE Ratio distribution charts can be found below:
* The bar in red indicates where Advanced Drainage Systems's PE Ratio falls into.
The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.
Advanced Drainage Systems's Share Price of today is MXN2100.00. Advanced Drainage Systems's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was MXN100.74.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
It can also be calculated from the numbers for the whole company:
There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio, Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.
In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.
Advanced Drainage Systems (MEX:WMS) has a PE Ratio of 20.85 as of Jun. 28, 2026. P/E ratio is the ratio of share price to a company's earnings per share. View historical data on Advanced Drainage Systems and its competitors. This is 21% below median its historical median of 26.54. Over the past decade, Advanced Drainage Systems' PE Ratio has ranged from 12.79 to 64.46.
Is Advanced Drainage Systems' PE Ratio too high?
Advanced Drainage Systems' current PE Ratio of 20.85 is 21% below median its 10-year median of 26.54. Over the past 10 years, this metric has ranged from a low of 12.79 to a high of 64.46. Overall, Advanced Drainage Systems has a GF Score™ of 59/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Advanced Drainage Systems' PE Ratio compare to SPXC and OC?
Advanced Drainage Systems' PE Ratio of 20.85 can be compared against companies in the Construction industry. Historically, Advanced Drainage Systems' own PE Ratio has ranged from 12.79 to 64.46 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PE Ratio for a Construction company?
A good PE Ratio depends on the Construction industry context. However, PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high PE Ratio mean?
A high PE Ratio can signal that a stock is expensive relative to its fundamentals. P/E ratio is the ratio of share price to a company's earnings per share. View historical data on Advanced Drainage Systems and its competitors. Advanced Drainage Systems's current PE Ratio is 20.85, which is 21% below median its own 10-year median of 26.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advanced Drainage Systems stock overvalued right now?
Based on GuruFocus' analysis, Advanced Drainage Systems (MEX:WMS) is currently considered Fairly Valued. The stock's GF Value™ is MXN2,006.35, compared to a current price of MXN2,100.00 — trading 4.7% above its estimated fair value. The current PE Ratio is 20.85, which is 21% below median its 10-year median of 26.54. Advanced Drainage Systems' overall GF Score™ is 59/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PE Ratio calculated?
PE Ratio is calculated from a company's financial statements. For Advanced Drainage Systems (MEX:WMS), the current PE Ratio is 20.85 as of Jun. 28, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Advanced Drainage Systems (MEX:WMS) Overvalued in 2026?
Based on GuruFocus' analysis, Advanced Drainage Systems stock appears to be overvalued.
The current stock price of MXN2,100.00 is trading 4.7% above its estimated GF Value™ of MXN2,006.35.
GuruFocus considers Advanced Drainage Systems to be Fairly Valued.
Key valuation signals for MEX:WMS:
PE Ratio: 20.85 (21% below median its 10-year median of 26.54)
GF Value™: MXN2,006.35 vs. price of MXN2,100.00 (4.7% above fair value)
No single metric tells the full story. See the MEX:WMS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advanced Drainage Systems Inc designs, manufactures and markets water management solutions in the stormwater and onsite wastewater industries, providing superior drainage solutions for use in the construction and agriculture markets. The company's products are used across a broad range of end markets and applications, including non-residential, residential, infrastructure and agriculture applications. It has two reportable segments: Stormwater and Wastewater. It derives the majority of revenue from the Stormwater segment, which manufactures and markets thermoplastic corrugated pipe and complementary products, including single wall pipe, N-12 HDPE pipe, polypropylene pipe, StormTech, Nyloplast, Inserta Tee, water quality filters and structures, and NDS channel drains, and access boxes.
59GF Score
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