Dycom Industries (DY:NYS) Fundamental Valuation Report


Fundamental Valuation Report

Dycom Industries(DY:NYS)

Industrials:Engineering & Construction

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$49.73 (USD) 18/03/2019

Weighted Valuation
$59.00 (USD)

Overall Rating
Undervalued by 18.6%

Valuation Models Analyst Consensus: $59.00 (USD)
(in order of importance)
Valuation Methods This company is:
Cash Flow: Undervalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation

Company Overview (DY:NYS USD)

Price 49.73
Range 49.17 – 50.53
52 week 43.33 – 116.20
Open 49.44
Vol / Avg. 304864/1.01M
Mkt cap 1.56B
P/E 25.24
Div/yield 0.00/0.00
EPS 1.97
Shares 31.44M
Beta 1.45

Company Description

Dycom Industries Inc provides contracting services in the United States and Canada. It offers program management, engineering, construction, maintenance, and installation services for telecommunications providers and utilities. Engineering services include the design of aerial, underground, and buried telecommunications systems that extend from telephone companies to end-users’ homes or businesses. Dycom Industries utilizes copper, coaxial cables, and other materials, and constructs trenches and structures to place the cables or improve distribution lines to consumers. In addition, the company provides tower construction, antenna installation, and other equipment for wireless carriers and television system operators. The majority of sales derive from the United States.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for DY:NYS

Using a discounted cash flow model we generated an intrinsic value of $81.53 (USD) for DY:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

DY:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $81.53 1% 5% 1% 5%
WACC (or Ke) 9.00 $102.76 $66.38
Terminal Growth Rate 3.00 $67.73 $100.86
Tax Rate 0.29 $91.39 $71.67
Cash Flow 409,752,292 $74.48 $88.58
Capital Expenditures 0 $81.53 $81.53
Long Term Debt 719,327,000 $82.68 $80.39

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $66.35 (USD) for DY:NYS. We also generated a valuation of $68.50 (USD) using other metrics and comparables.
The comparable companies were AECOM (ACM:NYS), EMCOR Group (EME:NYS), Comfort Systems USA (FIX:NYS), Fluor (FLR:NYS) and Granite Construction (GVA:NYS).

Company DY:NYS End Date Value
Earnings/Share $1.97 (USD)
Book Value/Share $26.10 (USD)
Sales/Share $97.77 (USD)
Cash Flow/Share $11.09 (USD)
EBITDA/Share $9.26 (USD)
Price Based on Comps Adjustment Factor (%)
$67.23 (USD) 9.1
$56.66 (USD) 14.8
$50.52 (USD) -0.4
$184.19 (USD) -64.2
$92.76 (USD) 3.0
DY:NYS Ratios Used Average Values ACM:NYS EME:NYS FIX:NYS FLR:NYS GVA:NYS
22.88 PE Ratio 34.13 65.87 14.75 17.87 23.65 48.50
1.74 PB Ratio 2.17 1.19 2.32 3.97 1.77 1.61
0.46 PS Ratio 0.52 0.25 0.52 0.92 0.28 0.62
4.06 PCF Ratio 19.07 9.60 15.55 13.69 32.76 23.73
7.30 EV to EBITDA 10.02 11.87 8.16 13.45 6.26 10.36

Multiples

Using a multiples approach we generated a valuation of  $95.44 (USD) for DY:NYS

Company DY:NYS End Date Value
Earnings/Share $1.97 (USD)
Book Value/Share $26.10 (USD)
Sales/Share $97.77 (USD)
Cash Flow/Share $11.09 (USD)
EBITDA/Share $9.26 (USD)
Price Based on Comps Adjustment Factor
$46.21 (USD) 0
$107.25 (USD) 0
$97.00 (USD) 0
$141.56 (USD) 0
$85.15 (USD) 0
Ratios Ratio Average
PE Ratio 23.46
PB Ratio 4.11
PS Ratio 0.99
PCF Ratio 12.76
EV to EBITDA 9.20

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  DY:NYS for the last 10 years was  4.07

We ran the Adjusted Book Value for  DY:NYS and generated a book value of  $25.59 (USD)
By multiplying these we get an adjusted valuation of  $104.20 (USD)

Analyst Data

In the Stockcalc database there are 2 analysts that provide a valuation for DY:NYS. The 2 analysts have a concensus valuation for DY:NYS for 2020 of $59.00 (USD).

DY:NYS Dycom Industries

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
1 1 0 4.0000 Outperform 2019-3-15

Current Price: 49.73 USD

Analyst Consensus
USD Millions 2020 2021
Mean EPS 2.48 3.66
# EPS Analysts 2 2
Mean Revenue 3,307.00 3,521.50
# Revenue Analysts 2 2
Mean Target Price 59.00
Mean Cash Flow 7.86 7.86
Mean EBITDA 326.80 380.30
Mean Net Income 79.50 108.30
Mean Debt Outstanding
Mean Tax Rate 27.75 27.75
Mean Growth Rate 7.00
Mean Capital Expenditure 160.00 160.00

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.
The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).
The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.
We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.
Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.
With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.
If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.


Dycom Industries (DY:NYS) Fundamental Valuation Report

Fundamental Valuation Report

Dycom Industries(DY:NYS)

Industrials:Engineering & Construction

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$49.10 (USD) 14/03/2019

Weighted Valuation
$59.00 (USD)

Overall Rating
Undervalued by 20.2%

Valuation Models Analyst Consensus: $59.00 (USD)
(in order of importance)
Valuation Methods This company is:
Cash Flow: Undervalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation

Company Overview (DY:NYS USD)

Price 49.10
Range 49.07 – 49.90
52 week 43.33 – 116.20
Open 49.28
Vol / Avg. 397375/992907
Mkt cap 1.54B
P/E 24.92
Div/yield 0.00/0.00
EPS 1.97
Shares 31.44M
Beta 1.45

Company Description

Dycom Industries Inc provides contracting services in the United States and Canada. It offers program management, engineering, construction, maintenance, and installation services for telecommunications providers and utilities. Engineering services include the design of aerial, underground, and buried telecommunications systems that extend from telephone companies to end-users’ homes or businesses. Dycom Industries utilizes copper, coaxial cables, and other materials, and constructs trenches and structures to place the cables or improve distribution lines to consumers. In addition, the company provides tower construction, antenna installation, and other equipment for wireless carriers and television system operators. The majority of sales derive from the United States.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for DY:NYS

Using a discounted cash flow model we generated an intrinsic value of $81.53 (USD) for DY:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

DY:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $81.53 1% 5% 1% 5%
WACC (or Ke) 9.00 $102.76 $66.38
Terminal Growth Rate 3.00 $67.73 $100.86
Tax Rate 0.29 $91.39 $71.67
Cash Flow 409,752,292 $74.48 $88.58
Capital Expenditures 0 $81.53 $81.53
Long Term Debt 719,327,000 $82.68 $80.39

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $66.35 (USD) for DY:NYS. We also generated a valuation of $68.21 (USD) using other metrics and comparables.
The comparable companies were AECOM (ACM:NYS), EMCOR Group (EME:NYS), Comfort Systems USA (FIX:NYS), Fluor (FLR:NYS) and Granite Construction (GVA:NYS).

Company DY:NYS End Date Value
Earnings/Share $1.97 (USD)
Book Value/Share $26.10 (USD)
Sales/Share $97.77 (USD)
Cash Flow/Share $11.09 (USD)
EBITDA/Share $9.26 (USD)
Price Based on Comps Adjustment Factor (%)
$67.23 (USD) 9.1
$56.66 (USD) 14.8
$50.52 (USD) -0.4
$184.19 (USD) -64.2
$92.76 (USD) 3.0
DY:NYS Ratios Used Average Values ACM:NYS EME:NYS FIX:NYS FLR:NYS GVA:NYS
22.88 PE Ratio 34.13 65.87 14.75 17.87 23.65 48.50
1.74 PB Ratio 2.17 1.19 2.32 3.97 1.77 1.61
0.46 PS Ratio 0.52 0.25 0.52 0.92 0.28 0.62
4.06 PCF Ratio 19.07 9.60 15.55 13.69 32.76 23.73
7.30 EV to EBITDA 10.02 11.87 8.16 13.45 6.26 10.36

Multiples

Using a multiples approach we generated a valuation of  $95.44 (USD) for DY:NYS

Company DY:NYS End Date Value
Earnings/Share $1.97 (USD)
Book Value/Share $26.10 (USD)
Sales/Share $97.77 (USD)
Cash Flow/Share $11.09 (USD)
EBITDA/Share $9.26 (USD)
Price Based on Comps Adjustment Factor
$46.21 (USD) 0
$107.25 (USD) 0
$97.00 (USD) 0
$141.56 (USD) 0
$85.15 (USD) 0
Ratios Ratio Average
PE Ratio 23.46
PB Ratio 4.11
PS Ratio 0.99
PCF Ratio 12.76
EV to EBITDA 9.20

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  DY:NYS for the last 10 years was  4.07

We ran the Adjusted Book Value for  DY:NYS and generated a book value of  $25.59 (USD)
By multiplying these we get an adjusted valuation of  $104.20 (USD)

Analyst Data

In the Stockcalc database there are 2 analysts that provide a valuation for DY:NYS. The 2 analysts have a concensus valuation for DY:NYS for 2020 of $59.00 (USD).

DY:NYS Dycom Industries

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
1 1 0 4.0000 Outperform 2019-3-13

Current Price: 49.1 USD

Analyst Consensus
USD Millions 2020 2021
Mean EPS 2.48 3.66
# EPS Analysts 2 2
Mean Revenue 3,307.00 3,521.50
# Revenue Analysts 2 2
Mean Target Price 59.00
Mean Cash Flow 7.86 7.86
Mean EBITDA 326.80 380.30
Mean Net Income 79.50 108.30
Mean Debt Outstanding
Mean Tax Rate 27.75 27.75
Mean Growth Rate 7.00
Mean Capital Expenditure 160.00 160.00

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.


Dycom Industries (DY:NYS) Fundamental Valuation Report

Fundamental Valuation Report

Dycom Industries(DY:NYS)

Industrials:Engineering & Construction

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$48.83 (USD) 11/03/2019

Weighted Valuation
$59.00 (USD)

Overall Rating
Undervalued by 20.8%

Valuation Models Analyst Consensus: $59.00 (USD)
(in order of importance)
Valuation Methods This company is:
Cash Flow: Undervalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation

Company Overview (DY:NYS USD)

Price 48.83
Range 47.09 – 49.11
52 week 43.33 – 116.20
Open 47.10
Vol / Avg. 541036/966207
Mkt cap 1.54B
P/E 24.79
Div/yield 0.00/0.00
EPS 1.97
Shares 31.44M
Beta 1.45

Company Description

Dycom Industries Inc provides contracting services in the United States and Canada. It offers program management, engineering, construction, maintenance, and installation services for telecommunications providers and utilities. Engineering services include the design of aerial, underground, and buried telecommunications systems that extend from telephone companies to end-users’ homes or businesses. Dycom Industries utilizes copper, coaxial cables, and other materials, and constructs trenches and structures to place the cables or improve distribution lines to consumers. In addition, the company provides tower construction, antenna installation, and other equipment for wireless carriers and television system operators. The majority of sales derive from the United States.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for DY:NYS

Using a discounted cash flow model we generated an intrinsic value of $81.53 (USD) for DY:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

DY:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $81.53 1% 5% 1% 5%
WACC (or Ke) 9.00 $102.76 $66.38
Terminal Growth Rate 3.00 $67.73 $100.86
Tax Rate 0.29 $91.39 $71.67
Cash Flow 409,752,292 $74.48 $88.58
Capital Expenditures 0 $81.53 $81.53
Long Term Debt 719,327,000 $82.68 $80.39

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $66.35 (USD) for DY:NYS. We also generated a valuation of $68.24 (USD) using other metrics and comparables.
The comparable companies were AECOM (ACM:NYS), EMCOR Group (EME:NYS), Comfort Systems USA (FIX:NYS), Fluor (FLR:NYS) and Granite Construction (GVA:NYS).

Company DY:NYS End Date Value
Earnings/Share $1.97 (USD)
Book Value/Share $26.10 (USD)
Sales/Share $97.77 (USD)
Cash Flow/Share $11.09 (USD)
EBITDA/Share $9.26 (USD)
Price Based on Comps Adjustment Factor (%)
$67.23 (USD) 9.1
$56.66 (USD) 14.8
$50.52 (USD) -0.4
$184.19 (USD) -64.2
$92.76 (USD) 3.0
DY:NYS Ratios Used Average Values ACM:NYS EME:NYS FIX:NYS FLR:NYS GVA:NYS
22.88 PE Ratio 34.13 65.87 14.75 17.87 23.65 48.50
1.74 PB Ratio 2.17 1.19 2.32 3.97 1.77 1.61
0.46 PS Ratio 0.52 0.25 0.52 0.92 0.28 0.62
4.06 PCF Ratio 19.07 9.60 15.55 13.69 32.76 23.73
7.30 EV to EBITDA 10.02 11.87 8.16 13.45 6.26 10.36

Multiples

Using a multiples approach we generated a valuation of  $95.44 (USD) for DY:NYS

Company DY:NYS End Date Value
Earnings/Share $1.97 (USD)
Book Value/Share $26.10 (USD)
Sales/Share $97.77 (USD)
Cash Flow/Share $11.09 (USD)
EBITDA/Share $9.26 (USD)
Price Based on Comps Adjustment Factor
$46.21 (USD) 0
$107.25 (USD) 0
$97.00 (USD) 0
$141.56 (USD) 0
$85.15 (USD) 0
Ratios Ratio Average
PE Ratio 23.46
PB Ratio 4.11
PS Ratio 0.99
PCF Ratio 12.76
EV to EBITDA 9.20

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  DY:NYS for the last 10 years was  4.08

We ran the Adjusted Book Value for  DY:NYS and generated a book value of  $25.59 (USD)
By multiplying these we get an adjusted valuation of  $104.30 (USD)

Analyst Data

In the Stockcalc database there are 2 analysts that provide a valuation for DY:NYS. The 2 analysts have a concensus valuation for DY:NYS for 2020 of $59.00 (USD).

DY:NYS Dycom Industries

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
1 1 0 4.0000 Outperform 2019-3-8

Current Price: 48.83 USD

Analyst Consensus
USD Millions 2020 2021
Mean EPS 2.48 3.66
# EPS Analysts 2 2
Mean Revenue 3,307.00 3,521.50
# Revenue Analysts 2 2
Mean Target Price 59.00
Mean Cash Flow 7.86 7.86
Mean EBITDA 326.80 380.30
Mean Net Income 79.50 108.30
Mean Debt Outstanding
Mean Tax Rate 27.75 27.75
Mean Growth Rate 7.00
Mean Capital Expenditure 160.00 160.00

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.


Dycom Industries (DY:NYS) Fundamental Valuation Report

Fundamental Valuation Report

Dycom Industries(DY:NYS)

Industrials:Engineering & Construction

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$47.90 (USD) 05/03/2019

Weighted Valuation
$59.00 (USD)

Overall Rating
Undervalued by 23.2%

Valuation Models Analyst Consensus: $59.00 (USD)
(in order of importance)
Valuation Methods This company is:
Cash Flow: Undervalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation

Company Overview (DY:NYS USD)

Price 47.90
Range 47.57 – 49.20
52 week 43.33 – 116.20
Open 48.59
Vol / Avg. 612328/901719
Mkt cap 1.52B
P/E 24.31
Div/yield 0.00/0.00
EPS 1.97
Shares 31.3M
Beta 1.45

Company Description

Dycom Industries Inc provides contracting services in the United States and Canada. It offers program management, engineering, construction, maintenance, and installation services for telecommunications providers and utilities. Engineering services include the design of aerial, underground, and buried telecommunications systems that extend from telephone companies to end-users’ homes or businesses. Dycom Industries utilizes copper, coaxial cables, and other materials, and constructs trenches and structures to place the cables or improve distribution lines to consumers. In addition, the company provides tower construction, antenna installation, and other equipment for wireless carriers and television system operators. The majority of sales derive from the United States.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for DY:NYS

Using a discounted cash flow model we generated an intrinsic value of $81.91 (USD) for DY:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

DY:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $81.91 1% 5% 1% 5%
WACC (or Ke) 9.00 $103.23 $66.68
Terminal Growth Rate 3.00 $68.04 $101.32
Tax Rate 0.29 $91.82 $72.00
Cash Flow 409,752,292 $74.83 $88.99
Capital Expenditures 0 $81.91 $81.91
Long Term Debt 719,327,000 $83.06 $80.76

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $66.35 (USD) for DY:NYS. We also generated a valuation of $68.51 (USD) using other metrics and comparables.
The comparable companies were AECOM (ACM:NYS), EMCOR Group (EME:NYS), Comfort Systems USA (FIX:NYS), Fluor (FLR:NYS) and Granite Construction (GVA:NYS).

Company DY:NYS End Date Value
Earnings/Share $1.97 (USD)
Book Value/Share $26.10 (USD)
Sales/Share $97.77 (USD)
Cash Flow/Share $11.09 (USD)
EBITDA/Share $9.26 (USD)
Price Based on Comps Adjustment Factor (%)
$67.23 (USD) 9.1
$56.66 (USD) 14.8
$50.52 (USD) -0.4
$184.19 (USD) -64.2
$92.76 (USD) 3.0
DY:NYS Ratios Used Average Values ACM:NYS EME:NYS FIX:NYS FLR:NYS GVA:NYS
22.88 PE Ratio 34.13 65.87 14.75 17.87 23.65 48.50
1.73 PB Ratio 2.17 1.19 2.32 3.97 1.77 1.61
0.46 PS Ratio 0.52 0.25 0.52 0.92 0.28 0.62
4.06 PCF Ratio 19.07 9.60 15.55 13.69 32.76 23.73
7.28 EV to EBITDA 10.02 11.87 8.16 13.45 6.26 10.36

Multiples

Using a multiples approach we generated a valuation of  $95.44 (USD) for DY:NYS

Company DY:NYS End Date Value
Earnings/Share $1.97 (USD)
Book Value/Share $26.10 (USD)
Sales/Share $97.77 (USD)
Cash Flow/Share $11.09 (USD)
EBITDA/Share $9.26 (USD)
Price Based on Comps Adjustment Factor
$46.21 (USD) 0
$107.25 (USD) 0
$97.00 (USD) 0
$141.56 (USD) 0
$85.15 (USD) 0
Ratios Ratio Average
PE Ratio 23.46
PB Ratio 4.11
PS Ratio 0.99
PCF Ratio 12.76
EV to EBITDA 9.20

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  DY:NYS for the last 10 years was  4.08

We ran the Adjusted Book Value for  DY:NYS and generated a book value of  $25.69 (USD)
By multiplying these we get an adjusted valuation of  $104.74 (USD)

Analyst Data

In the Stockcalc database there are 2 analysts that provide a valuation for DY:NYS. The 2 analysts have a concensus valuation for DY:NYS for 2020 of $59.00 (USD).

DY:NYS Dycom Industries

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
1 1 0 4.0000 Outperform 2019-3-4

Current Price: 47.9 USD

Analyst Consensus
USD Millions 2020 2021
Mean EPS 2.48 3.66
# EPS Analysts 2 2
Mean Revenue 3,307.00 3,521.50
# Revenue Analysts 2 2
Mean Target Price 59.00
Mean Cash Flow 7.86 7.86
Mean EBITDA 326.80 380.30
Mean Net Income 79.50 108.30
Mean Debt Outstanding
Mean Tax Rate 27.75 27.75
Mean Growth Rate 7.00
Mean Capital Expenditure 160.00 160.00

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.


Jacobs Engineering Group (JEC:NYS) Fundamental Valuation Report

Fundamental Valuation Report

Jacobs Engineering Group(JEC:NYS)

Industrials:Engineering & Construction

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$64.69 (USD) 23/11/2018

Weighted Valuation
$70.75 (USD)

Overall Rating
Undervalued by 9.4%

Valuation Models Analyst Consensus: $87.40 (USD)
(in order of importance) Comparables: $50.67 (USD)
Adjusted Book Value: $60.97 (USD)
Valuation Methods This company is:
Cash Flow: Undervalued on a Cash Flow Valuation
Comparable Company: Overvalued on a Comparable Valuation
Asset: Overvalued on an Asset Valuation

Company Overview (JEC:NYS USD)

Price 64.69
Range 64.00 – 65.55
52 week 55.57 – 80.92
Open 64.62
Vol / Avg. 1.28M/1.69M
Mkt cap 9.2B
P/E 55.29
Div/yield 0.75/0.01
EPS 1.17
Shares 142.26M
Beta 1.41

Company Description

Jacobs Engineering is one of the largest global providers of engineering and construction services to industrial, commercial, and government clients. It provides engineering, procurement, fabrication, construction, and maintenance services to a wide range of industries, including energy, manufacturing, pharma, technology, and mining, along with the U.S. federal government. The company generated fiscal 2018 revenue and adjusted operating income of $15 billion and $648 million, respectively, and employs 54,500.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for JEC:NYS

Using a discounted cash flow model we generated an intrinsic value of $90.54 (USD) for JEC:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

JEC:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $90.54 1% 5% 1% 5%
WACC (or Ke) 9.70 $107.14 $78.25
Terminal Growth Rate 3.00 $79.72 $105.16
Tax Rate 0.28 $97.03 $84.05
Cash Flow 1,421,091,000 $85.62 $95.46
Capital Expenditures -94,848,000 $90.23 $90.85
Long Term Debt 487,941,000 $90.71 $90.37

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $50.67 (USD) for JEC:NYS. We also generated a valuation of $49.02 (USD) using other metrics and comparables.
The comparable companies were AECOM (ACM:NYS), EMCOR Group (EME:NYS), Fluor (FLR:NYS), KBR (KBR:NYS) and MasTec (MTZ:NYS).

Company JEC:NYS End Date Value
Earnings/Share $1.17 (USD)
Book Value/Share $41.94 (USD)
Sales/Share $101.64 (USD)
Cash Flow/Share $3.49 (USD)
EBITDA/Share $5.98 (USD)
Price Based on Comps Adjustment Factor (%)
$21.12 (USD) -22.8
$80.03 (USD) -17.2
$45.55 (USD) -18.9
$152.98 (USD) -44.8
$53.05 (USD) 8.7
JEC:NYS Ratios Used Average Values ACM:NYS EME:NYS FLR:NYS KBR:NYS MTZ:NYS
33.52 PE Ratio 18.05 33.49 16.06 24.50 5.46 10.74
1.79 PB Ratio 1.91 1.12 2.30 2.03 1.70 2.40
0.74 PS Ratio 0.45 0.24 0.53 0.31 0.62 0.54
21.52 PCF Ratio 48.30 9.56 21.58 149.32 0.00 12.72
17.20 EV to EBITDA 8.87 10.90 9.50 7.70 7.12 9.11

Multiples

Using a multiples approach we generated a valuation of  $54.56 (USD) for JEC:NYS

Company JEC:NYS End Date Value
Earnings/Share $1.17 (USD)
Book Value/Share $41.94 (USD)
Sales/Share $101.64 (USD)
Cash Flow/Share $3.49 (USD)
EBITDA/Share $5.98 (USD)
Price Based on Comps Adjustment Factor
$32.79 (USD) 0
$61.20 (USD) 0
$58.56 (USD) 0
$39.23 (USD) 0
$81.03 (USD) 0
Ratios Ratio Average
PE Ratio 28.03
PB Ratio 1.46
PS Ratio 0.58
PCF Ratio 11.24
EV to EBITDA 13.54

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  JEC:NYS for the last 10 years was  1.48

We ran the Adjusted Book Value for  JEC:NYS and generated a book value of  $41.16 (USD)
By multiplying these we get an adjusted valuation of  $60.97 (USD)

Analyst Data

In the Stockcalc database there are 5 analysts that provide a valuation for JEC:NYS. The 5 analysts have a concensus valuation for JEC:NYS for 2019 of $87.40 (USD).

JEC:NYS Jacobs Engineering Group

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
6 1 0 4.7143 Buy 2018-11-22

Current Price: 64.69 USD

Analyst Consensus
USD Millions 2019 2020 2021
Mean EPS 5.24 5.69 5.85
# EPS Analysts 7 5 1
Mean Revenue 16,878.50 17,805.40 18,586.60
# Revenue Analysts 6 5 1
Mean Target Price 87.40
Mean Cash Flow 5.38 6.31 7.06
Mean EBITDA 1,265.10 1,303.90 1,379.70
Mean Net Income 761.80 807.70 834.80
Mean Debt Outstanding 975.30 389.60 -665.20
Mean Tax Rate 18.60 15.45
Mean Growth Rate 15.57
Mean Capital Expenditure 151.50 136.10 167.30

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.


AECOM (ACM:NYS) Fundamental Valuation Report

Fundamental Valuation Report

AECOM(ACM:NYS)

Industrials:Engineering & Construction

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$32.49 (USD) 14/11/2018

Weighted Valuation
$35.09 (USD)

Overall Rating
Undervalued by 8.0%

Valuation Models Analyst Consensus: $34.50 (USD)
(in order of importance) Adjusted Book Value: $36.69 (USD)
Multiples: $33.64 (USD)
Valuation Methods This company is:
Cash Flow: Undervalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation

Company Overview (ACM:NYS USD)

Price 32.49
Range 31.54 – 32.70
52 week 29.14 – 39.62
Open 31.58
Vol / Avg. 2.15M/1.16M
Mkt cap 5.08B
P/E 38.68
Div/yield 0.00/0.00
EPS 0.84
Shares 156.35M
Beta 1.58

Company Description

Los Angeles-based Aecom is one of the world’s largest providers of engineering and construction services, with an emphasis on infrastructure and government services. Its integrated services model designs, builds, finances, and operates a broad range of technical project and program services. Aecom’s customers include military and security entities, transportation facilities, environmental agencies, and energy companies. The company generated fiscal 2017 sales and adjusted EBIT of $18.2 billion and $825 million, respectively, and employs 82,000.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for ACM:NYS

Using a discounted cash flow model we generated an intrinsic value of $62.39 (USD) for ACM:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

ACM:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $62.39 1% 5% 1% 5%
WACC (or Ke) 9.32 $79.19 $50.19
Terminal Growth Rate 3.00 $51.62 $77.22
Tax Rate 0.11 $67.04 $57.74
Cash Flow 985,504,000 $58.31 $66.48
Capital Expenditures 17,783,600 $62.46 $62.33
Long Term Debt 4,295,217,000 $63.77 $61.02

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $42.78 (USD) for ACM:NYS. We also generated a valuation of $54.44 (USD) using other metrics and comparables.
The comparable companies were EMCOR Group (EME:NYS), Fluor (FLR:NYS), Jacobs Engineering Group (JEC:NYS), KBR (KBR:NYS) and Tetra Tech (TTEK:NAS).

Company ACM:NYS End Date Value
Earnings/Share $0.84 (USD)
Book Value/Share $25.98 (USD)
Sales/Share $121.58 (USD)
Cash Flow/Share $3.05 (USD)
EBITDA/Share $4.39 (USD)
Price Based on Comps Adjustment Factor (%)
$17.78 (USD) -21.1
$60.85 (USD) -26.2
$84.29 (USD) -44.5
$49.92 (USD) 3.4
$50.39 (USD) 19.2
ACM:NYS Ratios Used Average Values EME:NYS FLR:NYS JEC:NYS KBR:NYS TTEK:NAS
33.49 PE Ratio 21.17 16.06 24.50 33.52 5.46 26.31
1.12 PB Ratio 2.34 2.30 2.03 1.79 1.70 3.90
0.24 PS Ratio 0.69 0.53 0.31 0.74 0.62 1.27
9.56 PCF Ratio 55.12 21.58 149.32 21.52 0.00 28.04
10.90 EV to EBITDA 11.47 9.50 7.70 17.17 7.12 15.89

Multiples

Using a multiples approach we generated a valuation of  $33.64 (USD) for ACM:NYS

Company ACM:NYS End Date Value
Earnings/Share $0.84 (USD)
Book Value/Share $25.98 (USD)
Sales/Share $121.58 (USD)
Cash Flow/Share $3.05 (USD)
EBITDA/Share $4.39 (USD)
Price Based on Comps Adjustment Factor
$25.79 (USD) 0
$36.59 (USD) 0
$35.96 (USD) 0
$22.29 (USD) 0
$47.54 (USD) 0
Ratios Ratio Average
PE Ratio 30.71
PB Ratio 1.41
PS Ratio 0.30
PCF Ratio 7.32
EV to EBITDA 10.83

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  ACM:NYS for the last 10 years was  1.41

We ran the Adjusted Book Value for  ACM:NYS and generated a book value of  $26.07 (USD)
By multiplying these we get an adjusted valuation of  $36.69 (USD)

Analyst Data

In the Stockcalc database there are 4 analysts that provide a valuation for ACM:NYS. The 4 analysts have a concensus valuation for ACM:NYS for 2019 of $34.50 (USD).

ACM:NYS AECOM

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
1 5 0 3.3333 Hold 2018-11-13

Current Price: 32.49 USD

Analyst Consensus
USD Millions 2019 2020 2021
Mean EPS 2.80 3.17 3.09
# EPS Analysts 6 5 1
Mean Revenue 20,687.20 20,966.10 21,851.60
# Revenue Analysts 5 4 1
Mean Target Price 34.50
Mean Cash Flow 3.56 4.61 4.83
Mean EBITDA 919.20 1,015.10 956.80
Mean Net Income 439.30 483.00 497.10
Mean Debt Outstanding 3,748.20 3,448.20
Mean Tax Rate 25.00 24.00
Mean Growth Rate 9.23
Mean Capital Expenditure 144.30 144.50 116.00

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.


EMCOR Group (EME:NYS) Fundamental Valuation Report


This Report was generated using the tools available on StockCalc.com. Patchell Brook Equity Analytics Inc. emphasizes that the user assumes all risks associated with the use of this report or the Stockcalc website including, but not limited to, all terms and conditions mentioned in the legal disclaimer.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.

EMCOR Group $76.19 (USD) Close Price as of 22/02/2018

Based on the analysis conducted in this report, EMCOR Group, (EME:NYS) is found to be  Undervalued.

Company EMCOR Group
Symbol:Exchange EME:NYS
Industry Industrials:Engineering & Construction
Close Price/Date $76.19 (USD) 22/02/2018
Weighted Average Valuation $81.04 (USD)
Summary EME:NYS is found to be  Undervalued by 6.4% using the 3 valuation models shown below.
Valuation Models Used Analyst Consensus: $80.00 (USD)
(in order of importance) Discounted Cash Flow: $90.78 (USD)
Comparables: $64.67 (USD)
Valuation Methods Analysis This company is:
Cash Flow Basis: Undervalued on a Cash Flow Valuation basis
Comparable Company Basis: Overvalued on a Comparable Valuation basis
Asset Basis: Overvalued on an Asset Valuation basis

Valuation Details

EMCOR Group Valuations

Summary chart

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for EME:NYS

Using a discounted cash flow model we generated an intrinsic value of $90.78 (USD) for EME:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

EME:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $90.78 1% 5% 1% 5%
WACC (or Ke) 8.86 $111.42 $76.16
Terminal Growth Rate 3.00 $77.69 $109.26
Tax Rate 0.28 $97.92 $83.65
Cash Flow 560,594,576 $85.48 $96.09
Capital Expenditures -30,277,200 $90.51 $91.06
Long Term Debt 523,277,000 $91.23 $90.34

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $64.67 (USD) for EME:NYS. We also generated a valuation of $57.37 (USD) using other metrics and comparables.
The comparable companies were AECOM (ACM:NYS), Comfort Systems USA (FIX:NYS), Fluor (FLR:NYS), Jacobs Engineering Group (JEC:NYS) and Primoris Services (PRIM:NAS)

Company EME:NYS End Date Value
Earnings/Share $3.82 (USD)
Book Value/Share $27.49 (USD)
Sales/Share $124.61 (USD)
Cash Flow/Share $6.11 (USD)
EBITDA/Share $7.05 (USD)
Price Based on Comps Adjustment Factor (%)
$102.04 (USD) -31.7
$63.06 (USD) -8.9
$72.66 (USD) -37.9
$72.17 (USD) -58.4
$80.68 (USD) 50.0
EME:NYS Ratios Used Average Values ACM:NYS FIX:NYS FLR:NYS JEC:NYS PRIM:NAS
21.05 PE Ratio 26.71 14.19 24.42 42.73 32.27 19.95
2.77 PB Ratio 2.29 1.39 3.79 2.43 1.51 2.35
0.61 PS Ratio 0.58 0.31 0.92 0.42 0.74 0.53
12.47 PCF Ratio 11.81 8.52 14.77 13.60 14.81 7.33
9.95 EV to EBITDA 12.19 9.50 11.71 11.46 20.87 7.41

Multiples

Using a multiples approach we generated a valuation of  $66.90 (USD) for EME:NYS

Company EME:NYS End Date Value
Earnings/Share $3.82 (USD)
Book Value/Share $27.49 (USD)
Sales/Share $124.61 (USD)
Cash Flow/Share $6.11 (USD)
EBITDA/Share $7.05 (USD)
Price Based on Comps Adjustment Factor
$72.93 (USD) 0
$59.41 (USD) 0
$60.39 (USD) 0
$80.25 (USD) 0
$61.51 (USD) 0
Ratios Ratio Average
PE Ratio 19.09
PB Ratio 2.16
PS Ratio 0.48
PCF Ratio 13.13
EV to EBITDA 8.73

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  EME:NYS for the last 10 years was  2.12

We ran the Adjusted Book Value for  EME:NYS and generated a book value of  $28.46 (USD)
By multiplying these we get an adjusted valuation of  $60.38 (USD)

Analyst Data

In the Stockcalc database there are 1 analysts that provide a valuation for EME:NYS. The 1 analysts have a concensus valuation for EME:NYS for 2018 of $80.00 (USD).

EME:NYS EMCOR Group

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
0 1 0 3.0000 Hold 2018-2-21

Current Price: not available

Analyst Consensus
USD Millions 2018 2019
Mean EPS 4.08 4.34
# EPS Analysts 1 1
Mean Revenue 8,035.00 8,360.00
# Revenue Analysts 1 1
Mean Target Price 80.00
Mean Cash Flow 5.79
Mean EBITDA 490.00 520.30
Mean Net Income 242.70 262.70
Mean Debt Outstanding
Mean Tax Rate 38.00 38.00
Mean Growth Rate 15.00
Mean Capital Expenditure 40.00 45.00

Company Overview (EME:NYS USD)

Price 76.19
Range 74.99 – 77.46
52 week 60.39 – 84.14
Open 75.46
Vol / Avg. 343754/452349
Mkt cap 4.48B
P/E 21.05
Div/yield 0.32/0.00
EPS 3.82
Shares 58.81M
Beta 1.49
Summary chart

Detailed Company Description

Emcor Group Inc an electrical and mechanical construction and facilities services firms. It services include installation of electrical distribution systems, voice and data communication systems, and environmental controls within buildings.

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.
The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).
The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.
We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.
Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.
With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.
If we have Analyst coverage for the company we use the consensus target price here.

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