GROWTH
Top line accelerating.
+4.7% YoY versus +2.1% prior. 3y CAGR −0.3%.
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All analysis on this page is for educational purposes only and does not constitute financial advice. Fair values are model-based estimates. Always do your own research.
1 of 2 legendary models say BUY ADT — but Howard Marks disagrees.
What would legendary investors pay for ADT?
These figures are not quotes or opinions from Buffett, Graham, Lynch or the other investors. They are our own estimates, computed by applying the intrinsic-value formulas each investor is known for to this company’s financials.
For educational purposes only. Not a recommendation to buy or sell securities.
The Question
Mixed — ADT Inc. has 15.8% ROE but D/E 3.19.
Financial story
Mixed — ADT Inc.'s 15.8% ROE is strong, but its 3.19 debt-to-equity is elevated.
Bottom line: ADT is rated BUY by 1 of 2 legendary models, with 1 holding and 0 flagging it overvalued, but earns a B sector grade (64/100) in Industrials. Whether the premium is justified depends on which lens you trust. Drill into the valuation breakdown and sector ranking for the full picture.
How does ADT compare?
+4.7% YoY versus +2.1% prior. 3y CAGR −0.3%.
+4.7%Net margin 11.6% versus 10.2% prior (+1.4pp). Operating 25.5%.
11.6%P/E 9.8x — 25% below the 5y median of 13.2x. Forward 7.2x hints at EPS expansion next year.
9.8xAverage fair value across qualifying models: $28. See the per-investor fair-value table in the valuation tab.
ADT trades at 9.9x earnings. Sector context and per-investor signals are in the valuation tab.
ADT and MSM differ on P/E, ROE, and revenue growth. See the full ADT vs MSM compare matrix.
Buffett and Marks evaluate ADT against their respective frameworks. Per-model fair value and reasoning are in the valuation tab.
ADT's P/E ratio is 9.9x. 5-year P/E history is in the financials tab.
1 of 2 legendary models say BUY. Full breakdown by investor and signal is in the valuation tab.
See exactly where ADT ranks
Sign in to unlock the full sector ranking — free.
Sign in to see the rankingADT sits at #9 in Industrials with a B grade (64/100).
