Montrose Environmental Group, Inc.

NYSE:MEG Stock Report

Market Cap: US$598.5m

Montrose Environmental Group Valuation

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

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MEG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MEG ($19) is trading below our estimate of fair value ($58.7)

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

Key Valuation Metric

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

Key metric: As MEG is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for MEG. This is calculated by dividing MEG's market cap by their current revenue.
What is MEG's PS Ratio?
PS Ratio1x
SalesUS$673.08m
Market CapUS$598.55m

Price to Sales Ratio vs Peers

How does MEG's PS Ratio compare to its peers?

The above table shows the PS ratio for MEG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1x
NVRI Enviri
0.3x4.4%US$607.4m
CECO CECO Environmental
1.9x13.2%US$1.0b
SP SP Plus
1.2xn/aUS$1.1b
AMBI Ambipar Emergency Response
0.7x11.8%US$293.2m
MEG Montrose Environmental Group
1x10.8%US$598.5m

Price-To-Sales vs Peers: MEG is good value based on its Price-To-Sales Ratio (1x) compared to the peer average (1x).

Price to Sales Ratio vs Industry

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

23 CompaniesPrice / SalesEstimated GrowthMarket Cap
ABM ABM Industries
0.4x2.1%US$3.17b
NVRI Enviri
0.3x4.4%US$607.42m
ACCO ACCO Brands
0.3x-0.006%US$487.63m
QUAD Quad/Graphics
0.1x-8.1%US$367.44m
MEG 1.0xIndustry Avg. 1.3xNo. of Companies23PS01.63.24.86.48+
23 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: MEG is good value based on its Price-To-Sales Ratio (1x) compared to the US Commercial Services industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

What is MEG's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MEG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1x
Fair PS Ratio1.1x

Price-To-Sales vs Fair Ratio: MEG is good value based on its Price-To-Sales Ratio (1x) compared to the estimated Fair Price-To-Sales Ratio (1.1x).

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 MEG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$19.00
US$35.83
+88.6%
13.6%US$40.00US$29.00n/a6
Dec ’25US$18.82
US$37.17
+97.5%
15.9%US$44.00US$29.00n/a6
Nov ’25US$25.71
US$49.50
+92.5%
7.0%US$54.00US$43.00n/a6
Oct ’25US$22.99
US$49.50
+115.3%
7.0%US$54.00US$43.00n/a6
Sep ’25US$32.90
US$49.50
+50.5%
7.0%US$54.00US$43.00n/a6
Aug ’25US$30.43
US$52.00
+70.9%
5.4%US$56.00US$48.00n/a5
Jul ’25US$42.29
US$52.00
+23.0%
5.4%US$56.00US$48.00n/a5
Jun ’25US$47.01
US$49.08
+4.4%
9.5%US$54.00US$39.50n/a6
May ’25US$43.10
US$48.58
+12.7%
9.7%US$54.00US$39.50n/a6
Apr ’25US$39.40
US$47.42
+20.3%
8.9%US$54.00US$39.50n/a6
Mar ’25US$38.02
US$46.42
+22.1%
13.4%US$54.00US$33.50n/a6
Feb ’25US$31.25
US$43.30
+38.6%
16.3%US$54.00US$33.50n/a5
Jan ’25US$32.13
US$43.30
+34.8%
16.3%US$54.00US$33.50n/a5
Dec ’24US$32.10
US$45.75
+42.5%
12.4%US$54.00US$40.00US$18.824
Nov ’24US$23.11
US$49.00
+112.0%
6.1%US$54.00US$46.00US$25.714
Oct ’24US$29.26
US$49.00
+67.5%
6.1%US$54.00US$46.00US$22.994
Sep ’24US$38.85
US$49.00
+26.1%
6.1%US$54.00US$46.00US$32.904
Aug ’24US$37.84
US$46.50
+22.9%
11.1%US$54.00US$40.00US$30.434
Jul ’24US$42.12
US$46.50
+10.4%
11.1%US$54.00US$40.00US$42.294
Jun ’24US$36.13
US$44.20
+22.3%
14.8%US$54.00US$35.00US$47.015
May ’24US$30.03
US$44.50
+48.2%
14.1%US$54.00US$35.00US$43.106
Apr ’24US$35.67
US$47.33
+32.7%
10.7%US$54.00US$39.00US$39.406
Mar ’24US$43.45
US$52.60
+21.1%
8.3%US$58.00US$47.00US$38.025
Feb ’24US$53.99
US$55.50
+2.8%
15.8%US$73.00US$47.00US$31.256
Jan ’24US$44.39
US$53.83
+21.3%
16.9%US$73.00US$47.00US$32.136
Dec ’23US$49.32
US$53.33
+8.1%
17.8%US$73.00US$44.00US$32.106

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/30 09:40
End of Day Share Price 2024/12/30 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Montrose Environmental Group, Inc. is covered by 12 analysts. 7 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Thomas BurltonBNP Paribas Exane
Andrew GroblerBNP Paribas Exane
Andrew ObinBofA Global Research