Acuity Brands Valuation

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

Below Fair Value: AYI ($254.43) is trading below our estimate of fair value ($355.78)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

AYI 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/Revenue2x
Enterprise Value/EBITDA12.6x
PEG Ratio2.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AYI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.3x
GNRC Generac Holdings
42.5x22.6%US$9.5b
NXT Nextracker
22.4x13.9%US$7.0b
ATKR Atkore
8.5x0.3%US$5.3b
ENS EnerSys
15.7x15.5%US$4.3b
AYI Acuity Brands
20x8.0%US$7.8b

Price-To-Earnings vs Peers: AYI is good value based on its Price-To-Earnings Ratio (20x) compared to the peer average (22.3x).


Price to Earnings Ratio vs Industry

How does AYI's PE Ratio compare vs other companies in the US Electrical Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: AYI is good value based on its Price-To-Earnings Ratio (20x) compared to the US Electrical industry average (20.8x).


Price to Earnings Ratio vs Fair Ratio

What is AYI'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.

AYI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20x
Fair PE Ratio19x

Price-To-Earnings vs Fair Ratio: AYI is expensive based on its Price-To-Earnings Ratio (20x) compared to the estimated Fair Price-To-Earnings Ratio (19x).


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 AYI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$254.43
US$283.54
+11.4%
8.1%US$322.00US$260.00n/a7
Jul ’25US$241.40
US$283.54
+17.5%
8.1%US$322.00US$260.00n/a7
Jun ’25US$259.61
US$290.82
+12.0%
7.2%US$322.00US$261.00n/a7
May ’25US$246.02
US$285.41
+16.0%
8.5%US$322.00US$247.50n/a8
Apr ’25US$265.14
US$253.31
-4.5%
7.1%US$286.00US$227.00n/a8
Mar ’25US$251.61
US$243.83
-3.1%
5.5%US$260.00US$227.00n/a6
Feb ’25US$240.14
US$233.29
-2.9%
12.3%US$260.00US$170.00n/a7
Jan ’25US$204.83
US$193.71
-5.4%
10.8%US$236.00US$170.00n/a7
Dec ’24US$182.86
US$188.57
+3.1%
6.7%US$210.00US$170.00n/a7
Nov ’24US$162.31
US$188.57
+16.2%
6.7%US$210.00US$170.00n/a7
Oct ’24US$170.31
US$181.86
+6.8%
7.4%US$210.00US$170.00n/a7
Sep ’24US$164.56
US$182.57
+10.9%
7.1%US$210.00US$170.00n/a7
Aug ’24US$166.14
US$182.57
+9.9%
7.1%US$210.00US$170.00n/a7
Jul ’24US$163.08
US$182.57
+12.0%
7.1%US$210.00US$170.00US$241.407
Jun ’24US$153.10
US$182.71
+19.3%
7.0%US$210.00US$170.00US$259.617
May ’24US$158.91
US$183.17
+15.3%
7.5%US$210.00US$170.00US$246.026
Apr ’24US$182.73
US$195.67
+7.1%
4.7%US$210.00US$180.00US$265.146
Mar ’24US$193.10
US$195.33
+1.2%
4.8%US$210.00US$180.00US$251.616
Feb ’24US$191.82
US$195.33
+1.8%
4.8%US$210.00US$180.00US$240.146
Jan ’24US$165.61
US$193.50
+16.8%
6.9%US$210.00US$170.00US$204.836
Dec ’23US$188.72
US$195.17
+3.4%
6.9%US$210.00US$170.00US$182.866
Nov ’23US$185.43
US$195.86
+5.6%
6.4%US$210.00US$170.00US$162.317
Oct ’23US$157.47
US$195.14
+23.9%
8.7%US$225.00US$170.00US$170.317
Sep ’23US$163.14
US$195.14
+19.6%
8.7%US$225.00US$170.00US$164.567
Aug ’23US$181.61
US$195.14
+7.5%
8.7%US$225.00US$170.00US$166.147
Jul ’23US$157.84
US$195.71
+24.0%
8.3%US$225.00US$174.00US$163.087

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


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