AtkinsRéalis Group (TSX:ATRL): Evaluating Valuation Following FTSE All-World Index Inclusion

AtkinsRéalis Group (TSX:ATRL) has just joined the FTSE All-World Index. This move tends to raise the company’s profile with a broader set of investors and can affect trading activity.

See our latest analysis for AtkinsRéalis Group.

This index addition comes after a stretch where momentum has gradually built for AtkinsRéalis Group. The company’s 1-year total shareholder return of 0.76% signals steady, if modest, long-term progress, with the latest share price closing at $101.64. Investors appear to be warming up to the stock as it continues attracting more institutional attention.

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With shares trading just below analyst targets and the company still showing a notable discount to intrinsic value, investors must ask whether AtkinsRéalis Group is currently undervalued or if the market is already anticipating its next stage of growth.

Most Popular Narrative: 8.2% Undervalued

Based on the most widely followed narrative, AtkinsRéalis Group’s stock is priced below what analysts estimate as fair value, creating a potential window for opportunistic investors. With the last close at CA$101.64 and a consensus fair value just over CA$110, the market has yet to fully price in future growth and earnings dynamics.

Record backlog growth, especially in Nuclear (backlog up 223% YoY to $5.6B), reflects surging demand as global energy transition and decarbonization accelerate. This large contracted pipeline is likely to drive sustained revenue and EBITDA growth for several years.

Read the complete narrative.

Curious about why analysts believe this stock could have years of compounding growth ahead? The fair value leans heavily on a shift toward higher-margin markets and margin expansion. If you want to uncover which financial assumptions power that optimism, delve into the narrative for the full story.

Result: Fair Value of $110.71 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, setbacks such as unexpected project delays or a slowdown in key regions could quickly challenge the optimistic growth outlook that investors have currently priced into the stock.

Find out about the key risks to this AtkinsRéalis Group narrative.

Build Your Own AtkinsRéalis Group Narrative

If you see things differently or want to follow your own path through the numbers, it takes just a few minutes to shape your own perspective. Do it your way

A great starting point for your AtkinsRéalis Group research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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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.

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