Aecon Group Inc.

TSX:ARE Stock Report

Market Cap: CA$3.1b

Aecon Group Valuation

Is ARE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

What is the Fair Price of ARE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: ARE (CA$45.48) is trading below our estimate of future cash flow value (CA$87.59)

Significantly Below Future Cash Flow Value: ARE is trading below future cash flow value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ARE?

Key metric: As ARE is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ARE. This is calculated by dividing ARE's market cap by their current earnings.
What is ARE's PE Ratio?
PE Ratio88.5x
EarningsCA$35.17m
Market CapCA$3.10b

Price to Earnings Ratio vs Peers

How does ARE's PE Ratio compare to its peers?

The above table shows the PE ratio for ARE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.4x
BDT Bird Construction
65.9x49.19%CA$3.2b
BDGI Badger Infrastructure Solutions
37.7x12.83%CA$2.9b
STN Stantec
24.9x20.36%CA$12.1b
ATRL AtkinsRéalis Group
5.2x-23.52%CA$13.5b
ARE Aecon Group
88.5x61.60%CA$3.1b

Price-To-Earnings vs Peers: ARE is expensive based on its Price-To-Earnings Ratio (88.5x) compared to the peer average (33.4x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does ARE's PE Ratio compare vs other companies in the North American Construction Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
ARE 88.5xIndustry Avg. 40.8xNo. of Companies8PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ARE is expensive based on its Price-To-Earnings Ratio (88.5x) compared to the North American Construction industry average (40.8x).

Price to Earnings Ratio vs Fair Ratio

What is ARE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ARE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio88.5x
Fair PE Ratio71.4x

Price-To-Earnings vs Fair Ratio: ARE is expensive based on its Price-To-Earnings Ratio (88.5x) compared to the estimated Fair Price-To-Earnings Ratio (71.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ARE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$45.48
CA$52.18
+14.74%
9.45%CA$62.00CA$46.00n/a11
May ’27CA$51.76
CA$52.18
+0.81%
9.45%CA$62.00CA$46.00n/a11
Apr ’27CA$42.20
CA$44.64
+5.77%
7.60%CA$52.00CA$39.00n/a11
Mar ’27CA$38.01
CA$35.61
-6.30%
8.11%CA$40.00CA$30.00n/a11
Feb ’27CA$35.30
CA$34.09
-3.43%
9.31%CA$40.00CA$30.00n/a11
Jan ’27CA$31.28
CA$33.18
+6.08%
11.48%CA$40.00CA$28.00n/a11
Dec ’26CA$28.24
CA$33.09
+17.18%
11.70%CA$40.00CA$28.00n/a11
Nov ’26CA$30.92
CA$33.09
+7.02%
11.70%CA$40.00CA$28.00n/a11
Oct ’26CA$25.01
CA$23.55
-5.86%
11.07%CA$28.00CA$19.00n/a11
Sep ’26CA$20.41
CA$23.27
+14.03%
10.70%CA$28.00CA$19.00n/a11
Aug ’26CA$19.34
CA$22.55
+16.57%
14.32%CA$30.00CA$17.00n/a11
Jul ’26CA$20.57
CA$21.55
+4.74%
18.92%CA$30.00CA$14.00n/a11
Jun ’26CA$18.86
CA$21.55
+14.24%
18.92%CA$30.00CA$14.00n/a11
May ’26CA$17.00
CA$21.55
+26.74%
18.92%CA$30.00CA$14.00CA$51.7611
Apr ’26CA$16.94
CA$26.41
+55.90%
17.67%CA$33.50CA$19.00CA$42.2011
Mar ’26CA$22.54
CA$30.82
+36.73%
8.05%CA$35.00CA$27.00CA$38.0111
Feb ’26CA$23.96
CA$30.82
+28.62%
8.05%CA$35.00CA$27.00CA$35.3011
Jan ’26CA$27.22
CA$30.82
+13.22%
9.77%CA$35.00CA$25.00CA$31.2811
Dec ’25CA$28.78
CA$29.91
+3.92%
9.82%CA$35.00CA$25.00CA$28.2411
Nov ’25CA$27.52
CA$27.00
-1.89%
10.83%CA$33.00CA$23.00CA$30.9211
Oct ’25CA$21.07
CA$21.27
+0.96%
23.96%CA$30.00CA$16.00CA$25.0111
Sep ’25CA$18.50
CA$19.82
+7.13%
15.89%CA$25.00CA$16.00CA$20.4111
Aug ’25CA$16.65
CA$19.82
+19.03%
15.89%CA$25.00CA$16.00CA$19.3411
Jul ’25CA$16.98
CA$18.92
+11.41%
17.69%CA$26.00CA$13.00CA$20.5711
Jun ’25CA$16.43
CA$19.24
+17.08%
14.45%CA$26.00CA$16.00CA$18.8611
May ’25CA$16.76
CA$19.47
+16.14%
14.22%CA$26.00CA$16.00CA$17.0012
CA$52.18
Fair Value
12.8% undervalued intrinsic discount
11
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/05/25 11:03
End of Day Share Price 2026/05/25 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Aecon Group Inc. is covered by 17 analysts. 11 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Christopher MurrayATB Cormark
Gareth TinglingBeacon Securities Limited
Devin DodgeBMO Capital Markets Equity Research