AECOM Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 ACM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ACM ($109.47) is trading below our estimate of fair value ($146.33)

Significantly Below Fair Value: ACM is trading below fair value by more than 20%.


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ACM. This is calculated by dividing ACM's market cap by their current earnings.
What is ACM's PE Ratio?
PE Ratio28.7x
EarningsUS$505.93m
Market CapUS$14.42b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ACM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average55x
FLR Fluor
34.7x17.5%US$9.0b
FIX Comfort Systems USA
36.1x15.9%US$16.8b
MTZ MasTec
123.6x36.8%US$11.1b
EME EMCOR Group
25.6x7.4%US$23.6b
ACM AECOM
28.7x16.3%US$14.4b

Price-To-Earnings vs Peers: ACM is good value based on its Price-To-Earnings Ratio (28.7x) compared to the peer average (55x).


Price to Earnings Ratio vs Industry

How does ACM's PE Ratio compare vs other companies in the US Construction Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
ACM 28.7xIndustry Avg. 34.7xNo. of Companies5PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ACM is good value based on its Price-To-Earnings Ratio (28.7x) compared to the US Construction industry average (34.7x).


Price to Earnings Ratio vs Fair Ratio

What is ACM'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.

ACM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28.7x
Fair PE Ratio25.3x

Price-To-Earnings vs Fair Ratio: ACM is expensive based on its Price-To-Earnings Ratio (28.7x) compared to the estimated Fair Price-To-Earnings Ratio (25.3x).


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 ACM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$109.47
US$116.56
+6.5%
7.8%US$128.00US$98.00n/a9
Nov ’25US$108.40
US$110.89
+2.3%
8.9%US$128.00US$93.00n/a9
Oct ’25US$102.59
US$105.89
+3.2%
6.6%US$113.00US$93.00n/a9
Sep ’25US$100.14
US$106.30
+6.2%
6.3%US$113.00US$93.00n/a10
Aug ’25US$90.47
US$102.50
+13.3%
6.7%US$112.00US$90.00n/a10
Jul ’25US$85.68
US$106.80
+24.6%
6.6%US$116.00US$90.00n/a10
Jun ’25US$87.34
US$106.80
+22.3%
6.6%US$116.00US$90.00n/a10
May ’25US$92.91
US$104.40
+12.4%
6.5%US$116.00US$89.00n/a10
Apr ’25US$97.74
US$103.40
+5.8%
5.5%US$110.00US$89.00n/a10
Mar ’25US$89.38
US$103.00
+15.2%
5.8%US$110.00US$89.00n/a9
Feb ’25US$89.73
US$101.00
+12.6%
7.7%US$110.00US$88.00n/a9
Jan ’25US$92.43
US$100.13
+8.3%
8.3%US$110.00US$88.00n/a8
Dec ’24US$89.54
US$98.63
+10.1%
7.5%US$109.00US$87.00n/a8
Nov ’24US$76.17
US$95.29
+25.1%
6.2%US$102.00US$85.00US$108.407
Oct ’24US$83.04
US$96.03
+15.6%
7.0%US$105.00US$85.00US$102.598
Sep ’24US$88.57
US$96.72
+9.2%
6.4%US$105.00US$85.00US$100.1410
Aug ’24US$87.50
US$96.82
+10.7%
6.7%US$105.00US$84.00US$90.4710
Jul ’24US$84.69
US$97.22
+14.8%
6.4%US$105.00US$84.00US$85.6810
Jun ’24US$77.55
US$97.22
+25.4%
6.4%US$105.00US$84.00US$87.3410
May ’24US$83.61
US$97.82
+17.0%
7.1%US$105.00US$82.00US$92.9110
Apr ’24US$84.32
US$97.82
+16.0%
7.1%US$105.00US$82.00US$97.7410
Mar ’24US$87.89
US$98.78
+12.4%
6.7%US$105.00US$82.00US$89.389
Feb ’24US$87.14
US$93.56
+7.4%
7.1%US$100.00US$77.00US$89.739
Jan ’24US$84.93
US$90.00
+6.0%
5.4%US$95.00US$77.00US$92.439
Dec ’23US$85.01
US$90.00
+5.9%
5.4%US$95.00US$77.00US$89.549
Nov ’23US$75.73
US$84.00
+10.9%
5.8%US$91.00US$74.00US$76.179

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


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