• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Aduro Clean Technologies (CNSX:ACT) Valuation After ECOCE Recycling Collaboration and Strong Recent Share Price Gains

    Simply Wall St·12/05/2025 19:22:56
    Listen to the news

    Aduro Clean Technologies (CNSX:ACT) just signed a multi year collaboration with Mexican environmental association ECOCE to test its Hydrochemolytic Technology on difficult mixed plastic waste, a move that could reshape its commercial pipeline in Latin America.

    See our latest analysis for Aduro Clean Technologies.

    That backdrop helps explain why the stock’s momentum has accelerated, with a roughly 32 percent 3 month share price return, a 119 percent year to date share price return, and a powerful 149 percent one year total shareholder return off a low base.

    If this kind of early stage growth story appeals, it could be worth exploring other high potential names using high growth tech and AI stocks to see what else fits your thesis.

    With shares already up more than 100 percent this year on breakthrough recycling hopes, the key question now is whether Aduro remains an under the radar opportunity or if the market is already pricing in years of growth.

    Price-to-Book of 33.5x: Is it justified?

    Aduro Clean Technologies last closed at CA$19.50, which equates to a price-to-book ratio of 33.5 times, far richer than typical software peers.

    The price to book multiple compares the market value of the company to its net assets on the balance sheet, and is often used for asset light or early stage businesses where earnings are still negative. In Aduro's case, investors are clearly paying a substantial premium over the underlying book value, effectively placing a large bet on future commercialisation of its recycling technologies rather than current fundamentals.

    That premium looks especially stretched when set against the broader Canadian software space, where the average price to book sits around 3.3 times, and even Aduro's closer peer group averages only 4.8 times. The current 33.5 times multiple signals that expectations for revenue growth and a rapid shift to profitability are materially higher than what the sector and peers are priced for today.

    See what the numbers say about this price — find out in our valuation breakdown.

    Result: Price-to-book of 33.5x (OVERVALUED).

    However, Aduro’s tiny revenue base and ongoing losses mean any setback in scaling its technology, or delays in commercial contracts, could quickly puncture sentiment.

    Find out about the key risks to this Aduro Clean Technologies narrative.

    Build Your Own Aduro Clean Technologies Narrative

    If you prefer to dive into the numbers yourself and challenge this view, you can build a custom thesis in just a few minutes: Do it your way.

    A great starting point for your Aduro Clean Technologies research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

    Ready for more high impact investment ideas?

    If you want a stronger edge and do not want to miss tomorrow’s winners, use the Simply Wall St screener to uncover data driven opportunities right now.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data 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 financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.