Perimeter Solutions (PRM): Valuation in Focus as Investor Confidence Rises on Fire Business Expansion and Cost Cuts

Simply Wall St.11-17

Perimeter Solutions (PRM) is making moves to offset industry challenges by cutting operating costs and expanding its fire prevention business. The company’s strong buy rating and earnings outlook are ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2584649742?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/2024000-choice1-main-header/1585186700183","is_english":true,"pubTime":"2025-11-17 15:21","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2584649742","market":"nz","top_or_hot":-1,"title":"Perimeter Solutions (PRM): Valuation in Focus as Investor Confidence Rises on Fire Business Expansion and Cost Cuts","media":"Simply Wall St.","content":"<div>\n<p>Perimeter Solutions (PRM) is making moves to offset industry challenges by cutting operating costs and expanding its fire prevention business. The company’s strong buy rating and earnings outlook are ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/materials/nyse-prm/perimeter-solutions/news/perimeter-solutions-prm-valuation-in-focus-as-investor-confi\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Perimeter Solutions (PRM): Valuation in Focus as Investor Confidence Rises on Fire Business Expansion and Cost Cuts</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPerimeter Solutions (PRM): Valuation in Focus as Investor Confidence Rises on Fire Business Expansion and Cost Cuts\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-11-17 15:21 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/materials/nyse-prm/perimeter-solutions/news/perimeter-solutions-prm-valuation-in-focus-as-investor-confi><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Perimeter Solutions (PRM) is making moves to offset industry challenges by cutting operating costs and expanding its fire prevention business. The company’s strong buy rating and earnings outlook are ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/materials/nyse-prm/perimeter-solutions/news/perimeter-solutions-prm-valuation-in-focus-as-investor-confi\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"DCF","symbol_name":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","start_time":0,"source_url":"https://simplywall.st/stocks/us/materials/nyse-prm/perimeter-solutions/news/perimeter-solutions-prm-valuation-in-focus-as-investor-confi","article_id":"2584649742","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/2024000-choice1-main-header/1585186700183"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/materials/nyse-prm/perimeter-solutions/news/perimeter-solutions-prm-valuation-in-focus-as-investor-confi","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2584649742","pubTimestamp":1763364105,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Perimeter Solutions (PRM) is making moves to offset industry challenges by cutting operating costs and expanding its fire prevention business. The company’s strong buy rating and earnings outlook are starting to draw fresh investor interest.\nSee our latest analysis for Perimeter Solutions.\nMomentum has clearly picked up for Perimeter Solutions. After trailing flatly for much of early 2024, investors have driven the share price up 99.6% year-to-date and delivered a total shareholder return of...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","PRM":"Perimeter Solutions, SA","BK4109":"特种化学制品","BK7142":"石油与天然气的勘探与生产","PRM.AU":"Prominence Energy NL"},"translate_title":"Perimeter Solutions(PRM)：随着投资者对消防业务扩张和成本削减的信心增强，估值成为焦点","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"PRM":1.5,"PRM.AU":1.5,"DCF":1},"content_text":"Perimeter Solutions (PRM) is making moves to offset industry challenges by cutting operating costs and expanding its fire prevention business. The company’s strong buy rating and earnings outlook are starting to draw fresh investor interest. See our latest analysis for Perimeter Solutions. Momentum has clearly picked up for Perimeter Solutions. After trailing flatly for much of early 2024, investors have driven the share price up 99.6% year-to-date and delivered a total shareholder return of 105% over the past year. Strategic moves like expanding its fire prevention business and maintaining a strong liquidity position are fueling optimism and keeping PRM’s upward trend in focus. If Perimeter’s turnaround has your attention, now’s the perfect chance to broaden your search and discover fast growing stocks with high insider ownership With shares nearly doubling this year and a robust outlook fueling investor optimism, the key question remains: is Perimeter Solutions trading at a bargain, or are markets already factoring in the company’s next phase of growth? AdvertisementPrice-to-Earnings of 48x: Is it justified? Perimeter Solutions trades at a lofty price-to-earnings ratio of 48x, notably higher than both peer and industry averages. At a last close of $25.33, this premium valuation signals big expectations from the market. The price-to-earnings (P/E) ratio measures how much investors are willing to pay for each dollar of earnings a company generates. For PRM, this high multiple often reflects investor confidence in sustained growth or an expectation that recent profitability will rapidly improve. Despite becoming newly profitable and boasting high-quality earnings, PRM's P/E sits well above the industry average of 22.9x and peers' 28.3x. The market is assigning a premium that only continued earnings growth could justify. If PRM’s profitability accelerates further, the multiple could look more reasonable. However, without significant profit expansion, this valuation stands out as expensive relative to its sector benchmarks. See what the numbers say about this price — find out in our valuation breakdown. Result: Price-to-Earnings of 48x (OVERVALUED) However, weaker future earnings growth or unexpected industry headwinds could quickly challenge optimism regarding Perimeter Solutions’ recent momentum and premium valuation. Find out about the key risks to this Perimeter Solutions narrative. Another View: Discounted Cash Flow Perspective Looking at valuation from a different angle, our SWS DCF model suggests Perimeter Solutions may actually be undervalued, with the stock trading about 14% below its estimated fair value. This perspective gives investors a more optimistic outlook compared to the lofty earnings multiple. Could this signal hidden upside, or does it merely highlight the uncertainty in forward assumptions? Look into how the SWS DCF model arrives at its fair value. PRM Discounted Cash Flow as at Nov 2025Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Perimeter Solutions for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 897 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.  Build Your Own Perimeter Solutions Narrative If you have a different perspective or want to dive into the numbers yourself, it only takes a few minutes to craft your own view. Do it your way. A great starting point for your Perimeter Solutions research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision. Looking for more investment ideas? Don’t let today’s hot streak pass by when there are even more smart investing opportunities waiting. Take action and get ahead with these handpicked screens:  Unlock income potential and spot high-yield champions by starting with these 16 dividend stocks with yields > 3%, where you can find stocks offering attractive payouts and growth prospects. Stay at the forefront of game-changing tech by exploring these 25 AI penny stocks, which features innovators shaping the digital intelligence landscape of tomorrow. Capitalize on market mispricings and discover bargains by using these 897 undervalued stocks based on cash flows, a tool that highlights great companies trading below their true worth.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.9","shortVersion":"4.35.9","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2584649742","isCrawlerRequest":true}