A Fresh Look at Fluor (FLR) Valuation Following Recent Share Price Declines

Fluor (FLR) shares eased after a stretch of modest losses this month, with investors continuing to assess the company’s performance. The construction and engineering giant’s stock moved down roughly 6% on the day, reflecting ongoing market adjustments.

See our latest analysis for Fluor.

After a rocky start to the year, Fluor's 1-day share price drop of nearly 6% follows a string of modest declines in recent weeks, adding to a year-to-date share price return of -12.6%. While this signals that momentum may be cooling lately, Fluor’s long-term total shareholder return offers a different perspective, still up a striking 171.7% over five years even after factoring in this year’s pullback.

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With Fluor trading below many analyst price targets and following a sharp drop in earnings, the question remains: are shares now undervalued, or is the recent weakness simply reflecting future headwinds already baked in?

Most Popular Narrative: 15.6% Undervalued

Fluor's current fair value, according to the most widely followed narrative, stands at $51 compared to the latest close of $43.04. Despite recent losses, this pricing suggests an upside, and the reasoning behind it hinges on several upcoming catalysts.

The collaboration to deploy up to 6 GW of new nuclear capacity in the U.S. is viewed as a transformational milestone. This supports long-term revenue and earnings growth for Fluor.

Read the complete narrative.

Which bold assumptions are fueling this valuation? The narrative is built on rapid revenue growth, contracting margins, and a profit outlook that contrasts with the recent price slump. See what numbers drive the bulls and why this target could surprise you.

Result: Fair Value of $51 (UNDERVALUED)

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

However, execution delays on major projects and ongoing cash flow pressures could quickly challenge even the most optimistic valuation assumptions.

Find out about the key risks to this Fluor narrative.

Another View: What Do Market Ratios Suggest?

Looking beyond narrative-driven fair value, Fluor’s share price sits at a low earnings multiple of just 2.2x, far beneath the industry average of 33.9x and even below its fair ratio of 6.2x. This sizeable gap could highlight undervaluation, but does the market see hidden risks or is there genuine opportunity?

See what the numbers say about this price — find out in our valuation breakdown.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Fluor for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 881 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Fluor Narrative

If you're looking to reach your own conclusions or see the data from a different angle, you can explore it all and share your perspective in under three minutes, and Do it your way.

A great starting point for your Fluor research is our analysis highlighting 3 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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