Featured Tickers:

ADT

ATGE

GHC

TAL

Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Diversified Consumer Services industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Diversified Consumer Services Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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3 Undervalued Diversified Consumer Services Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Diversified Consumer Services industry for Wednesday, February 25, 2026. Let’s take a closer look at their individual scores to see how they measure up against each other and the Diversified Consumer Services industry median.

Company	Ticker	Price/Sales	Price/Earnings	EV/EBITDA	Shareholder Yield	Price/Book Value	Price/Free Cash Flow	Value Grade
ADT Inc.	ADT	1.33	10.8	5.3	12.3%	1.75	5.6	A
Graham Holdings Company	GHC	0.95	6.4	4.0	1.1%	1.05	14.0	A
TAL Education Group	TAL	2.26	23.3	12.3	8.4%	1.74	13.4	B

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

ADT Inc.’s Value Grade

Value Grade:

Metric	Score	ADT	Industry Median
Price/Sales	39	1.33	1.07
Price/Earnings	18	10.8	19.0
EV/EBITDA	10	5.3	11.4
Shareholder Yield	3	12.3%	(1.1%)
Price/Book Value	46	1.75	2.09
Price/Free Cash Flow	12	5.6	14.0

ADT Inc. provides security, interactive, and smart home solutions in the United States. It offers burglar and life safety alarms, smart security cameras, smart home automation systems, and video surveillance systems to detect intrusion; control access; sense movement, smoke, fire, carbon monoxide, leaks, temperature, and other environmental conditions and hazards; and address personal medical emergencies, such as injuries or unanticipated falls. The company also provides routine maintenance and the installation of upgraded or additional equipment; personal emergency response system products and services to sustain independent living; Google Nest doorbell, mesh Wi-Fi, and Google indoor and outdoor cameras; and application for self-setup DIY smart home security products. In addition, it offers Trusted Neighbor, which allows customers to grant access to their homes through the ADT+ app; and automation and smart home solutions, including remotely monitor and manage their environments through customized web portal via web-enabled devices, such as smart phones, smart phone applications, and through touchscreen panels in their homes. The company provides its products under the ADT, ADT Pulse, and ADT+ brand names. It offers its products and services to residential and small business security, and automation markets comprising owners and renters of single-family homes, apartments, and small businesses owners through customer referrals, door-to-door activities, network of field sales and service offices, third-party independent dealers, and authorized dealers. The company was formerly known as Prime Security Services Parent, Inc. and changed its name to ADT Inc. in September 2017. ADT Inc. was founded in 1874 and is headquartered in Boca Raton, Florida.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

ADT Inc. has a Value Score of 94, which is considered to be undervalued.

When you look at ADT Inc.’s price-to-sales ratio at 1.33 compared to the industry median at 1.07, this company has a higher price relative to revenue compared to its peers. This could make ADT Inc.’s stock less attractive for value investors.

ADT Inc.’s price-earnings ratio is 10.80 compared to the industry median at 19.00. This means it has a lower share price relative to earnings compared to its peers. This could make ADT Inc. more attractive for value investors.

Now, let’s assess ADT Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 5.3, when compared to the industry median of 11.4, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. ADT Inc.’s shareholder yield is higher than its industry median ratio of (1.05%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. ADT Inc.’s price-to-book ratio is lower than its industry median ratio of 2.09. This could make ADT Inc. more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at ADT Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. ADT Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 14.00. This could make ADT Inc. more attractive because the lower P/FCF ratio indicates that ADT Inc. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Graham Holdings Company’s Value Grade

Value Grade:

Metric	Score	GHC	Industry Median
Price/Sales	31	0.95	1.07
Price/Earnings	6	6.4	19.0
EV/EBITDA	7	4.0	11.4
Shareholder Yield	37	1.1%	(1.1%)
Price/Book Value	25	1.05	2.09
Price/Free Cash Flow	36	14.0	14.0

Graham Holdings Company, through its subsidiaries, operates as a diversified holding company in the United States and internationally. The company provides test preparation services and materials; professional training and exam preparation for professional certifications and licensures; and non-academic operations support services to the Purdue University Global; operations support services for online courses and programs; training and test preparation services for accounting and financial services professionals; language training, academic preparation programs, and preparation for proficiency exams; and A-level examination services, as well as operates colleges, business school, higher education institution, and an online learning institution. It also owns and operates television stations, restaurants, and entertainment venues; engages in the financial training and automobile dealerships business; offers social media management tools to connect newsrooms with their users; produces Foreign Policy magazine and ForeignPolicy.com website; and publishes Slate, an online magazine, as well as French-language news magazine website at slate.fr. In addition, the company provides social media marketing solutions; home health, hospice, and palliative services; burners, igniters, dampers, and controls; screw jacks, linear actuators, and related linear motion products and lifting systems; pressure impregnated kiln-dried lumber and plywood products; digital advertising services; power charging and data systems, industrial and commercial indoor lighting solutions, and electrical components and assemblies; valet repair services; in-home aesthetics; and physician and healthcare software-as-a-services, as well as operates pharmacy. The company was formerly known as The Washington Post Company and changed its name to Graham Holdings Company in November 2013. Graham Holdings Company was founded in 1877 and is based in Arlington, Virginia.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Graham Holdings Company has a Value Score of 92, which is considered to be undervalued.

Graham Holdings Company’s price-earnings ratio is 6.4 compared to the industry median at 19.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Graham Holdings Company more attractive for value investors.

Graham Holdings Company’s price-to-book ratio is higher than its peers. This could make Graham Holdings Company less attractive for value investors when compared to the industry median at 2.09.

You can read more about Graham Holdings Company’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

TAL Education Group’s Value Grade

Value Grade:

Metric	Score	TAL	Industry Median
Price/Sales	52	2.26	1.07
Price/Earnings	56	23.3	19.0
EV/EBITDA	47	12.3	11.4
Shareholder Yield	7	8.4%	(1.1%)
Price/Book Value	46	1.74	2.09
Price/Free Cash Flow	34	13.4	14.0

TAL Education Group provides K-12 after-school tutoring services in the People’s Republic of China. It provides learning services primarily through small classes services; personalized premium services and online course offerings; and learning content solutions, such as print books, smart books, mobile apps, and AI-driven learning devices. The company also operates www.xueersi.com, an online education platform; provides investment management and consulting services; develops and sells software and networks, as well as related consulting services; and sells educational materials and products. It offers its services under the Haoweilai and Think Academy brands. The company was founded in 2003 and is headquartered in Beijing, the People’s Republic of China.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

TAL Education Group has a Value Score of 64, which is considered to be undervalued.

TAL Education Group’s price-earnings ratio is 23.3 compared to the industry median at 19.0. This means that it has a higher price relative to its earnings compared to its peers. This makes TAL Education Group less attractive for value investors.

TAL Education Group’s price-to-book ratio is higher than its peers. This could make TAL Education Group less attractive for value investors when compared to the industry median at 2.09.

You can read more about TAL Education Group’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Diversified Consumer Services Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Diversified Consumer Services stocks as well as other industrys.

Choosing Which of the 3 Best Diversified Consumer Services Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

ADT Inc. stock has a Value Grade of A.
Graham Holdings Company stock has a Value Grade of A.
TAL Education Group stock has a Value Grade of B.

Now that you have a bit more background about each of the 3 undervalued stocks in the Diversified Consumer Services industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Diversified Consumer Services Stocks

Want to learn more about Diversified Consumer Services stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.