ABM Industries Incorporated

NYSE:ABM Stock Report

Market Cap: US$2.8b

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 ($44.53) is trading below our estimate of fair value ($125.48)

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?

Other financial metrics that can be useful for relative valuation.

ABM 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/Revenue0.5x
Enterprise Value/EBITDA9.2x
PEG Ratio-1.5x

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 Average39.1x
SP SP Plus
32.5x35.2%US$1.0b
HCCI Heritage-Crystal Clean
14.6x-9.0%US$1.1b
CECO CECO Environmental
65.5x41.8%US$830.9m
TTEK Tetra Tech
43.7x25.5%US$10.1b
ABM ABM Industries
10.9x-7.2%US$2.8b

Price-To-Earnings vs Peers: ABM is good value based on its Price-To-Earnings Ratio (10.9x) compared to the peer average (47.3x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: ABM is good value based on its Price-To-Earnings Ratio (10.9x) compared to the US Commercial Services industry average (27.3x).


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 Ratio10.9x
Fair PE Ratio18x

Price-To-Earnings vs Fair Ratio: ABM is good value based on its Price-To-Earnings Ratio (10.9x) compared to the estimated Fair Price-To-Earnings Ratio (18x).


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$44.53
US$50.83
+14.2%
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$40.00n/a5
Oct ’24US$40.01
US$46.80
+17.0%
14.0%US$57.00US$40.00n/a5
Sep ’24US$45.81
US$56.67
+23.7%
10.8%US$65.00US$50.00n/a6
Aug ’24US$45.37
US$56.67
+24.9%
10.8%US$65.00US$50.00n/a6
Jul ’24US$42.65
US$56.67
+32.9%
10.8%US$65.00US$50.00n/a6
Jun ’24US$44.13
US$56.17
+27.3%
11.8%US$65.00US$48.00n/a6
May ’24US$42.55
US$57.80
+35.8%
10.5%US$65.00US$51.00n/a5
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
Oct ’23US$38.23
US$58.00
+51.7%
10.1%US$65.00US$51.00US$40.015
Sep ’23US$45.12
US$60.60
+34.3%
11.6%US$72.00US$53.00US$45.815
Aug ’23US$45.36
US$59.60
+31.4%
11.9%US$70.00US$50.00US$45.375
Jul ’23US$43.20
US$59.60
+38.0%
11.9%US$70.00US$50.00US$42.655
Jun ’23US$48.30
US$59.00
+22.2%
12.5%US$70.00US$50.00US$44.135
May ’23US$48.27
US$59.00
+22.2%
12.5%US$70.00US$50.00US$42.555
Apr ’23US$46.38
US$58.40
+25.9%
11.9%US$70.00US$50.00US$44.945

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


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