Aurizon Holdings Ltd
ASX:AZJ
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EV/IC
Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.
Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.
Valuation Scenarios
If EV/IC returns to its 3-Year Average (0.9), the stock would be worth AU$3.95 (5% downside from current price).
| Scenario | EV/IC Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 1 | AU$4.15 |
0%
|
| 3-Year Average | 0.9 | AU$3.95 |
-5%
|
| 5-Year Average | 1 | AU$4.07 |
-2%
|
| Industry Average | 0.9 | AU$4 |
-4%
|
| Country Average | 1.7 | AU$7.21 |
+74%
|
Forward EV/IC
Today’s price vs future invested capital
Peer Comparison
| Market Cap | EV/IC | P/E | ||||
|---|---|---|---|---|---|---|
| AU |
|
Aurizon Holdings Ltd
ASX:AZJ
|
7.1B AUD | 1 | 23.3 | |
| US |
|
Union Pacific Corp
NYSE:UNP
|
157.2B USD | 2.7 | 21.8 | |
| US |
|
CSX Corp
NASDAQ:CSX
|
83B USD | 2.4 | 27.2 | |
| CA |
|
Canadian Pacific Railway Ltd
TSX:CP
|
106.5B CAD | 1.5 | 24.8 | |
| US |
|
Norfolk Southern Corp
NYSE:NSC
|
70B USD | 2 | 24.4 | |
| CA |
|
Canadian National Railway Co
TSX:CNR
|
96.5B CAD | 2 | 19.2 | |
| CN |
|
Beijing-Shanghai High Speed Railway Co Ltd
SSE:601816
|
241.7B CNY | 1 | 18.3 | |
| HK |
|
MTR Corp Ltd
HKEX:66
|
212.8B HKD | 0.9 | 52.1 | |
| US |
K
|
Kansas City Southern
LSE:0JQ4
|
4.2B USD | 0.7 | 43.3 | |
| JP |
|
Central Japan Railway Co
TSE:9022
|
3.9T JPY | 0.8 | 7.2 | |
| JP |
|
East Japan Railway Co
TSE:9020
|
3.9T JPY | 0.8 | 17.2 |
Market Distribution
| Min | 0 |
| 30th Percentile | 1.1 |
| Median | 1.7 |
| 70th Percentile | 3.5 |
| Max | 3 073.7 |
Other Multiples
Aurizon Holdings Ltd
Glance View
Aurizon Holdings Ltd, Australia's largest rail freight operator, is the linchpin of the country’s transportation network, weaving essential routes across the vast Australian landscape. Established from the former government entity, QR National, Aurizon has become synonymous with moving Australia's abundant natural resources. Its primary business involves the transportation of coal from mines in the resource-rich hinterlands of Queensland and New South Wales to bustling coastal ports. By forming strategic partnerships with key mining companies, Aurizon ensures these commodities are efficiently transferred from the sprawling outback to global markets. The company operates both track infrastructure and freight services, generating revenue through access fees charged to operators using its extensive network, as well as from direct haulage services. Apart from coal, Aurizon’s diversified freight portfolio includes iron ore, agricultural goods, and industrial products, highlighting its pivotal role in connecting various sectors of the Australian economy. The company has invested heavily in modernizing its locomotive fleet and rail infrastructure, enabling it to enhance operational efficiency and reliability. These strategic advancements help Aurizon maintain a competitive advantage in the sector. Additionally, its network expansion and technology integration are critical in optimizing transport operations, ultimately contributing to consistent revenue streams. While environmental concerns and fluctuating commodity prices present challenges, Aurizon’s expertise in logistics and keen focus on sustainability initiatives continue to solidify its position as a leader in Australia's rail freight industry.