ABM Industries Incorporated

NYSE:ABM Stock Report

Market Cap: US$3.6b

ABM Industries Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: ABM ($56.79) is trading below our estimate of fair value ($115.71)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ABM. This is calculated by dividing ABM's market cap by their current earnings.
What is ABM's PE Ratio?
PE Ratio22.9x
EarningsUS$155.90m
Market CapUS$3.57b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ABM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average45.5x
BV BrightView Holdings
83x56.8%US$1.6b
ARIS Aris Water Solutions
33.7x40.2%US$1.6b
TTEK Tetra Tech
32.9x12.5%US$11.0b
CLH Clean Harbors
32.7x12.0%US$13.6b
ABM ABM Industries
22.9x19.9%US$3.6b

Price-To-Earnings vs Peers: ABM is good value based on its Price-To-Earnings Ratio (22.9x) compared to the peer average (45.5x).


Price to Earnings Ratio vs Industry

How does ABM's PE Ratio compare vs other companies in the US Commercial Services Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SGTM Sustainable Green Team
3.9xn/aUS$43.63m
CDTG CDT Environmental Technology Investment Holdings
4.6xn/aUS$34.24m
PGTK Pacific Green Technologies
3.9xn/aUS$31.29m
OMEX Odyssey Marine Exploration
0.7xn/aUS$8.54m
ABM 22.9xIndustry Avg. 32.3xNo. of Companies9PE020406080100+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ABM is good value based on its Price-To-Earnings Ratio (22.9x) compared to the US Commercial Services industry average (32.3x).


Price to Earnings Ratio vs Fair Ratio

What is ABM'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.

ABM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.9x
Fair PE Ratio27.6x

Price-To-Earnings vs Fair Ratio: ABM is good value based on its Price-To-Earnings Ratio (22.9x) compared to the estimated Fair Price-To-Earnings Ratio (27.6x).


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 ABM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$56.79
US$57.50
+1.3%
5.7%US$63.00US$55.00n/a6
Nov ’25US$53.09
US$57.50
+8.3%
5.7%US$63.00US$55.00n/a6
Oct ’25US$51.65
US$57.50
+11.3%
5.7%US$63.00US$55.00n/a6
Sep ’25US$57.15
US$53.33
-6.7%
8.0%US$60.00US$49.00n/a6
Aug ’25US$55.30
US$53.33
-3.6%
8.0%US$60.00US$49.00n/a6
Jul ’25US$50.16
US$53.33
+6.3%
8.0%US$60.00US$49.00n/a6
Jun ’25US$47.27
US$50.83
+7.5%
11.8%US$60.00US$45.00n/a6
May ’25US$44.80
US$50.83
+13.5%
11.8%US$60.00US$45.00n/a6
Apr ’25US$44.60
US$50.83
+14.0%
11.8%US$60.00US$45.00n/a6
Mar ’25US$41.21
US$51.83
+25.8%
11.7%US$60.00US$42.00n/a6
Feb ’25US$41.68
US$51.83
+24.4%
11.7%US$60.00US$42.00n/a6
Jan ’25US$44.83
US$51.83
+15.6%
11.7%US$60.00US$42.00n/a6
Dec ’24US$42.15
US$46.17
+9.5%
13.3%US$57.00US$40.00n/a6
Nov ’24US$39.36
US$46.80
+18.9%
14.0%US$57.00US$40.00US$53.095
Oct ’24US$40.01
US$46.80
+17.0%
14.0%US$57.00US$40.00US$51.655
Sep ’24US$45.81
US$56.67
+23.7%
10.8%US$65.00US$50.00US$57.156
Aug ’24US$45.37
US$56.67
+24.9%
10.8%US$65.00US$50.00US$55.306
Jul ’24US$42.65
US$56.67
+32.9%
10.8%US$65.00US$50.00US$50.166
Jun ’24US$44.13
US$56.17
+27.3%
11.8%US$65.00US$48.00US$47.276
May ’24US$42.55
US$57.80
+35.8%
10.5%US$65.00US$51.00US$44.805
Apr ’24US$44.94
US$57.80
+28.6%
10.5%US$65.00US$51.00US$44.605
Mar ’24US$48.33
US$58.00
+20.0%
10.1%US$65.00US$51.00US$41.215
Feb ’24US$47.23
US$58.00
+22.8%
10.1%US$65.00US$51.00US$41.685
Jan ’24US$44.42
US$58.00
+30.6%
10.1%US$65.00US$51.00US$44.835
Dec ’23US$46.88
US$58.00
+23.7%
10.1%US$65.00US$51.00US$42.155
Nov ’23US$45.33
US$58.00
+28.0%
10.1%US$65.00US$51.00US$39.365

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


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