Stantec Inc.

NYSE:STN Stock Report

Market Cap: US$9.4b

Stantec Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: STN ($82.53) is trading below our estimate of fair value ($84.8)

Significantly Below Fair Value: STN is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for STN. This is calculated by dividing STN's market cap by their current earnings.
What is STN's PE Ratio?
PE Ratio37.8x
EarningsCA$348.70m
Market CapCA$13.23b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for STN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average52.5x
MTZ MasTec
121.5x36.8%US$10.5b
FLR Fluor
34.9x17.5%US$8.9b
STRL Sterling Infrastructure
30.9x11.0%US$5.5b
VMI Valmont Industries
22.8x9.0%US$6.8b
STN Stantec
37.8x23.6%US$13.2b

Price-To-Earnings vs Peers: STN is good value based on its Price-To-Earnings Ratio (37.8x) compared to the peer average (52.5x).

Price to Earnings Ratio vs Industry

How does STN'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
STN 37.8xIndustry Avg. 34.9xNo. of Companies6PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: STN is expensive based on its Price-To-Earnings Ratio (37.8x) compared to the US Construction industry average (34.3x).

Price to Earnings Ratio vs Fair Ratio

What is STN'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.

STN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio37.8x
Fair PE Ratio27.9x

Price-To-Earnings vs Fair Ratio: STN is expensive based on its Price-To-Earnings Ratio (37.8x) compared to the estimated Fair Price-To-Earnings Ratio (27.9x).

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 STN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$82.53
US$94.47
+14.5%
5.5%US$104.13US$86.18n/a12
Nov ’25US$81.49
US$93.35
+14.6%
6.5%US$104.39US$86.39n/a12
Oct ’25US$80.47
US$91.68
+13.9%
4.2%US$99.68US$87.31n/a10
Sep ’25US$81.99
US$91.68
+11.8%
4.2%US$99.68US$87.31n/a10
Aug ’25US$87.54
US$91.81
+4.9%
4.0%US$99.92US$86.88n/a10
Jul ’25US$81.91
US$92.13
+12.5%
2.7%US$95.28US$87.95n/a10
Jun ’25US$80.68
US$92.13
+14.2%
2.7%US$95.28US$87.95n/a10
May ’25US$80.42
US$90.39
+12.4%
3.2%US$95.94US$87.22n/a11
Apr ’25US$82.17
US$91.34
+11.2%
3.0%US$95.76US$87.65n/a11
Mar ’25US$81.74
US$91.12
+11.5%
2.7%US$95.88US$87.77n/a11
Feb ’25US$82.08
US$86.69
+5.6%
3.7%US$92.61US$81.50n/a11
Jan ’25US$80.19
US$85.99
+7.2%
4.6%US$93.25US$77.58n/a11
Dec ’24US$75.50
US$79.19
+4.9%
5.4%US$84.75US$71.49n/a11
Nov ’24US$61.91
US$72.04
+16.4%
4.9%US$76.69US$65.73US$81.4911
Oct ’24US$64.87
US$71.83
+10.7%
4.5%US$77.32US$66.27US$80.4711
Sep ’24US$66.83
US$71.91
+7.6%
4.0%US$78.08US$66.93US$81.9910
Aug ’24US$67.28
US$69.53
+3.4%
4.4%US$75.25US$63.97US$87.5410
Jul ’24US$65.22
US$66.80
+2.4%
2.9%US$69.18US$63.23US$81.9110
Jun ’24US$58.73
US$65.75
+11.9%
2.9%US$68.62US$62.72US$80.6810
May ’24US$60.38
US$65.05
+7.7%
3.0%US$69.30US$62.59US$80.4210
Apr ’24US$58.41
US$64.02
+9.6%
3.0%US$68.35US$61.74US$82.1710
Mar ’24US$58.06
US$64.02
+10.3%
3.0%US$68.35US$61.74US$81.7410
Feb ’24US$53.01
US$58.70
+10.7%
6.0%US$67.73US$53.43US$82.0810
Jan ’24US$47.94
US$57.77
+20.5%
3.7%US$60.09US$53.33US$80.1911
Dec ’23US$49.54
US$57.77
+16.6%
3.7%US$60.09US$53.33US$75.5011
Nov ’23US$48.94
US$54.39
+11.1%
4.2%US$58.73US$49.18US$61.9111

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

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