UL Solutions ULS
United StatesIndustrials · Specialty Business ServicesUSD
96.48 USD (+43.7%)
12 analysts
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UL Solutions is a global provider of conformity assessment services, including testing, inspection, certification and advisory, helping companies demonstrate the safety and regulatory compliance of their products.
Key points
from its scores- ✓High-quality business8.3
- ✓Very solid balance sheet7.8
- ✓Favourable backdrop7.7
- ✕Demanding valuation4.3
- ✕Little or no dividend4.7
AI analysis
bottom line, main risk, context and newsIt is a high-quality company with an impeccable balance sheet, but its valuation does not offer enough margin of safety for a purchase at the current time.
UL Solutions shows excellent financial health (net debt/EBITDA of 0.06), superior quality (ROE of 38.71% and ROIC of 27.96%) and earnings growth of 168.9%, although its valuation (P/E 27.07) already discounts these strengths and its dividend yield is low (0.86%).
The main risk is the demanding valuation (P/E 27.07 and EV/EBITDA 18.89) which, combined with moderate revenue growth of 5.2%, leaves little room for error if earnings growth normalizes.
Context and risks
UL Solutions operates in the conformity assessment, certification and testing services sector, a regulated business but not exposed to commodity cycles, interest rates or shipping routes. Its balance sheet is solid (Net Debt/EBITDA of 0.06) and its activity does not depend on significant external financing, so the current macro context does not materially affect it.
Is UL Solutions stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 18% above the Industrials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 27.1 | 25.4 | +6% |
| EV / EBITDA | 18.9 | 14.5 | +30% |
| Price / book | 8.5 | 4.1 | +110% |
| Price / sales | 4.3 | 2.1 | +109% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 4.3 out of 10 (median for Industrials: 5.0).
Average analyst target: 96.48 USD, +43.7% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 8.3 (sector 5.8), Growth 7.6 (sector 6.6).
Classic formulas with standard assumptions (4.9% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- P/E
- 27.1
- Forward P/E
- 25.8
- EV / EBITDA
- 18.9
- Price / book
- 8.5
- Price / sales
- 4.3
- PEG
- 1.39
- Market cap
- 13.5B USD
- Enterprise value
- 13.6B USD
Profitability
- ROE
- 38.7%
- ROA
- 12.3%
- ROIC (approx.)
- 28.0%
- Gross margin
- 50.4%
- Operating margin
- 18.4%
- Net margin
- 16.1%
- Free cash flow
- 420.5M USD
- FCF yield
- 3.1%
- Cash conversion
- 58%
Solvency
- Total debt
- 476.0M USD
- Net debt
- 42.0M USD
- Cash
- 434.0M USD
- EBITDA
- 721.0M USD
- Net debt / EBITDA
- 0.06
- Debt / equity
- 29.38
- Current ratio
- 1.43
- Quick ratio
- 1.32
Growth
- Revenue growth
- +5.2%
- Earnings growth
- +168.9%
- EPS (TTM)
- 2.48 USD
- EPS (forward)
- 2.60 USD
Dividend
- Dividend yield
- 0.9%
- Payout
- 22.2%
Risk and market
- Beta
- 0.71
- Analyst consensus
- Buy (12)
- Target price
- 96.48 USD
- 52-week range
- 63.17 – 107.54
Recent news
All ULS news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about UL Solutions
Is UL Solutions stock cheap or expensive?
On P/E and EV / EBITDA, it trades 18% above the Industrials median on average. Valuation score: 4.3 out of 10 (median for Industrials: 5.0). Average analyst target: 96.48 USD, +43.7% versus the price. This is not investment advice.
What score does UL Solutions get on MeridIAn Screener?
It scores 6.6 out of 10, rank 482 of 2,130 (better than 77% of the companies analysed). Its strongest category is Quality / Moat (8.3) and its weakest, Valuation (4.3). Analysis of 08/10/2026.
What is UL Solutions's P/E ratio?
Its P/E is 27.1: the share price equals 27.1 times earnings per share over the last 12 months. The Industrials median is 25.4. Based on the earnings analysts expect, the forward P/E is 25.8.
How much is UL Solutions worth on the stock market?
Its market capitalisation is 13.5B USD and its enterprise value, debt included, is 13.6B USD.
How much debt does UL Solutions have?
Its net debt (debt minus cash) is 42.0M USD. That is 0.06 times its EBITDA; the Industrials median is 1.58.
Does UL Solutions pay a dividend?
Yes: its dividend yield is 0.86% and it pays out 22% of its earnings.
How has UL Solutions stock performed over the last year?
It has fallen 6.4% over the last year, excluding dividends. Over the last 52 weeks it has traded between 63.17 and 107.54 USD. Past performance does not guarantee future results.
What do analysts think of UL Solutions?
12 analysts cover it; their average recommendation is “Buy” and their average target is 96.48 USD (+43.7% versus the price). It is an estimate, not market data.