Aecon Group Inc.

TSX:ARE Stock Report

Market Cap: CA$1.2b

Aecon Group Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair 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.

Below Fair Value: ARE (CA$18.5) is trading above our estimate of fair value (CA$12.95)

Significantly Below Fair Value: ARE is trading above our estimate of fair value.

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

ARE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.2x
Enterprise Value/EBITDA-6.1x
PEG Ratio1x

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 Average25.7x
BDT Bird Construction
15.1x37.5%CA$1.3b
BDGI Badger Infrastructure Solutions
22.1x41.8%CA$1.2b
ATRL AtkinsRéalis Group
28.7x26.3%CA$9.3b
STN Stantec
36.8x20.9%CA$12.6b
ARE Aecon Group
88.2x89.4%CA$1.2b

Price-To-Earnings vs Peers: ARE is expensive based on its Price-To-Earnings Ratio (88.2x) compared to the peer average (25.7x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a26.4%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a26.4%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: ARE is expensive based on its Price-To-Earnings Ratio (88.2x) compared to the North American Construction industry average (28.4x).

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 Ratio88.2x
Fair PE Ratio89.1x

Price-To-Earnings vs Fair Ratio: ARE is good value based on its Price-To-Earnings Ratio (88.2x) compared to the estimated Fair Price-To-Earnings Ratio (89.1x).

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$18.50
CA$19.82
+7.1%
15.9%CA$25.00CA$16.00n/a11
Aug ’25CA$16.65
CA$19.82
+19.0%
15.9%CA$25.00CA$16.00n/a11
Jul ’25CA$16.98
CA$18.92
+11.4%
17.7%CA$26.00CA$13.00n/a11
Jun ’25CA$16.43
CA$19.24
+17.1%
14.4%CA$26.00CA$16.00n/a11
May ’25CA$16.76
CA$19.47
+16.1%
14.2%CA$26.00CA$16.00n/a12
Apr ’25CA$17.06
CA$18.04
+5.8%
18.9%CA$26.00CA$13.00n/a12
Mar ’25CA$14.59
CA$14.19
-2.8%
15.7%CA$18.00CA$10.00n/a12
Feb ’25CA$14.35
CA$14.10
-1.7%
16.2%CA$18.00CA$10.00n/a12
Jan ’25CA$13.07
CA$13.08
+0.1%
15.8%CA$16.00CA$10.00n/a12
Dec ’24CA$11.69
CA$13.04
+11.6%
16.3%CA$16.00CA$10.00n/a12
Nov ’24CA$10.30
CA$13.04
+26.6%
16.3%CA$16.00CA$10.00n/a12
Oct ’24CA$11.35
CA$13.75
+21.1%
16.1%CA$17.00CA$10.00n/a13
Sep ’24CA$11.48
CA$13.73
+19.6%
17.0%CA$17.00CA$10.00CA$18.5012
Aug ’24CA$10.94
CA$13.73
+25.5%
17.0%CA$17.00CA$10.00CA$16.6512
Jul ’24CA$12.37
CA$15.65
+26.5%
17.0%CA$20.00CA$11.50CA$16.9813
Jun ’24CA$13.34
CA$15.65
+17.3%
17.0%CA$20.00CA$11.50CA$16.4313
May ’24CA$12.60
CA$15.79
+25.3%
18.2%CA$20.00CA$11.50CA$16.7612
Apr ’24CA$13.73
CA$15.81
+15.2%
18.4%CA$21.00CA$11.50CA$17.0612
Mar ’24CA$10.99
CA$12.92
+17.6%
17.8%CA$17.50CA$10.00CA$14.5913
Feb ’24CA$10.80
CA$12.42
+15.0%
15.5%CA$17.00CA$10.00CA$14.3513
Jan ’24CA$9.11
CA$13.08
+43.5%
21.1%CA$20.00CA$10.00CA$13.0713
Dec ’23CA$9.87
CA$13.23
+34.1%
20.0%CA$20.00CA$10.00CA$11.6913
Nov ’23CA$9.69
CA$13.23
+36.5%
20.0%CA$20.00CA$10.00CA$10.3013
Oct ’23CA$9.52
CA$14.23
+49.5%
18.3%CA$20.00CA$11.00CA$11.3513
Sep ’23CA$10.58
CA$14.23
+34.5%
18.3%CA$20.00CA$11.00CA$11.4813

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

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