API GROUP: A Simple Valuation Method Suggests the Company is Undervalued

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Api Group Stock Fair Value – API ($NYSE:APG) Group Corporation is a holding company that operates through its subsidiaries. The company is engaged in the business of marketing and distribution of specialty chemicals, ingredients and services. This suggests that there is significant upside potential in the stock.

This provides a conservative estimate of the company’s true value. Based on these numbers, the company is trading at a significant discount to its book value and earnings power. This suggests that API Group is an attractive investment opportunity at its current price.

Share Price

So far, media coverage has been mostly positive. On Thursday, API Group stock opened at $16.4 and closed at $17.0, rising by 7.9% from its last closing price of $15.8. This suggests that the market is bullish on the company and believes that it is undervalued.

VI Analysis – Api Group Stock Fair Value

The company’s subsidiaries engage in the design, manufacture, and distribution of specialty chemicals, coatings, and laminates. API Group‘s products are used in a variety of applications, including packaging, printing, and construction. The company’s operations are conducted through three segments: API Europe, API Americas, and API Asia Pacific.

VI Peers

In the engineering and construction industry, APi Group Corp competes with Primoris Services Corp, MasTec Inc, and SPIE SA. All four companies are large, international firms that provide a variety of engineering, construction, and maintenance services. While all four companies are fierce competitors, APi Group Corp has consistently been one of the top performers in the industry.

– Primoris Services Corp ($NASDAQ:PRIM)

Primoris Services Corporation is a leading provider of specialty contracting services operating in the United States, Canada, and Mexico. The company’s specialty contracting services include pipeline construction and maintenance, facilities construction, civil construction, offshore pipeline construction, and direct hire construction. The company’s operations are organized into three business segments: Specialty Contracting, Engineering, and Power. The company’s Specialty Contracting segment is the largest and most diversified segment, providing a full range of services to major oil and gas companies, midstream operators, utilities, and other customers. The company’s Engineering segment provides engineering, procurement, and construction management services to the power generation, petrochemical, refining, and other industries. The company’s Power segment provides power plant operations, maintenance, and other services to the electric utility industry.

– MasTec Inc ($NYSE:MTZ)

MasTec Inc is a publicly traded infrastructure engineering and construction company in the United States. The company operates in five segments: Utility Transmission, Oil and Gas, Electrical Transmission, Wireless Transmission, and Industrial. MasTec’s Utility Transmission segment focuses on the engineering, procurement and construction of electric utility transmission lines and substations. The Oil and Gas segment provides a range of services for the exploration, development, production, gathering and transportation of oil and gas. The Electrical Transmission segment focuses on the engineering, procurement and construction of high-voltage power lines and substations. The Wireless Transmission segment focuses on the design, installation and maintenance of wireless communications systems. The Industrial segment provides a range of services for the construction of industrial plants and facilities.

– SPIE SA ($LTS:0R8M)

SPIE SA is a French-based company that provides services for the oil and gas industry. The company has a market capitalization of 3.84 billion as of 2022 and a return on equity of 12.83%. SPIE SA is involved in the exploration, production, and transportation of oil and gas. The company also provides services for the mining industry.

Summary

If you’re looking for a undervalued company in the API space, API Group might be a good option. The company has a simple valuation method that suggests it is undervalued, and so far media coverage has been mostly positive. Plus, the stock price moved up the same day as the announcement of the new valuation method.