Analysis and Insights
To determine if AECOM (ACM) is overvalued, we analyze its valuation metrics, recent performance, and market sentiment.
Valuation Metrics:
AECOM's current valuation metrics are as follows:
- P/E Ratio: 24.67 (Q1 2025)
- EV/EBITDA: 13.63
- P/S Ratio: 0.89
- P/B Ratio: 6.06
- Dividend Yield: 0.86%
These metrics suggest ACM is fairly valued relative to industry standards, with the P/S ratio indicating undervaluation.
Recent Performance and News:
AECOM's stock rose 2.1% after strong earnings, with projected 15-20% earnings and revenue growth. However, Baird reduced its price target from $125 to $17, reflecting some market concerns.
Market Sentiment:
Analysts are mixed, with Baird maintaining an Outperform rating despite the target cut. The stock's flat YTD performance suggests it's trading near its fair value.
Conclusion:
ACM appears fairly valued, with growth potential from infrastructure investments. While some metrics like P/B are high, others indicate undervaluation. Monitor Baird's target cut but consider the positive earnings and industry tailwinds.