Aurizon Holdings Ltd
ASX:AZJ

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Aurizon Holdings Ltd
ASX:AZJ
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Price: 4.15 AUD
Market Cap: AU$7B

EV/IC

1
Current
5%
More Expensive
vs 3-y average of 0.9

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.

EV/IC
1
=
Enterprise Value
AU$11.1B
/
Invested Capital
AU$11.2B

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.

EV/IC
1
=
Enterprise Value
AU$11.1B
/
Invested Capital
AU$11.2B

Valuation Scenarios

Aurizon Holdings Ltd is trading above its 3-year average

If EV/IC returns to its 3-Year Average (0.9), the stock would be worth AU$3.95 (5% downside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-5%
Maximum Upside
+74%
Average Upside
16%
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

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close

Market Distribution

Lower than 74% of companies in Australia
Percentile
26th
Based on 2 047 companies
26th percentile
1
Low
0 — 1.1
Typical Range
1.1 — 3.5
High
3.5 —
Distribution Statistics
Australia
Min 0
30th Percentile 1.1
Median 1.7
70th Percentile 3.5
Max 3 073.7

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.

AZJ Intrinsic Value
4.52 AUD
Undervaluation 8%
Intrinsic Value
Price AU$4.15
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