J Valuation

Jacobs Solutions Inc

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143.370

-1.86(-1.281%)1D

Overview
Forecast
Valuation
Earnings

J Relative Valuation

J's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, J is overvalued; if below, it's undervalued.

Historical Valuation

Jacobs Solutions Inc (J) is now in the Fair zone, suggesting that its current forward PE ratio of 21.36 is considered Fairly compared with the five-year average of 18.95. The fair price of Jacobs Solutions Inc (J) is between 121.45 to 151.58 according to relative valuation methord.

Relative Value

Fair Zone

121.45-151.58

Current Price：143.97

Fair

21.36

Trailing

Forward

15.29

EV/EBITDA

Jacobs Solutions Inc. (J) has a current EV/EBITDA of 15.29. The 5-year average EV/EBITDA is 14.27. The thresholds are as follows: Strongly Undervalued below 10.67, Undervalued between 10.67 and 12.47, Fairly Valued between 16.08 and 12.47, Overvalued between 16.08 and 17.88, and Strongly Overvalued above 17.88. The current Forward EV/EBITDA of 15.29 falls within the Historic Trend Line -Fairly Valued range.

15.75

EV/EBIT

Jacobs Solutions Inc. (J) has a current EV/EBIT of 15.75. The 5-year average EV/EBIT is 14.57. The thresholds are as follows: Strongly Undervalued below 11.47, Undervalued between 11.47 and 13.02, Fairly Valued between 16.12 and 13.02, Overvalued between 16.12 and 17.66, and Strongly Overvalued above 17.66. The current Forward EV/EBIT of 15.75 falls within the Historic Trend Line -Fairly Valued range.

1.38

Jacobs Solutions Inc. (J) has a current PS of 1.38. The 5-year average PS is 1.13. The thresholds are as follows: Strongly Undervalued below 0.76, Undervalued between 0.76 and 0.94, Fairly Valued between 1.32 and 0.94, Overvalued between 1.32 and 1.50, and Strongly Overvalued above 1.50. The current Forward PS of 1.38 falls within the Overvalued range.

19.33

P/OCF

Jacobs Solutions Inc. (J) has a current P/OCF of 19.33. The 5-year average P/OCF is 17.69. The thresholds are as follows: Strongly Undervalued below 5.20, Undervalued between 5.20 and 11.44, Fairly Valued between 23.94 and 11.44, Overvalued between 23.94 and 30.19, and Strongly Overvalued above 30.19. The current Forward P/OCF of 19.33 falls within the Historic Trend Line -Fairly Valued range.

21.48

P/FCF

Jacobs Solutions Inc. (J) has a current P/FCF of 21.48. The 5-year average P/FCF is 11.59. The thresholds are as follows: Strongly Undervalued below -44.99, Undervalued between -44.99 and -16.70, Fairly Valued between 39.88 and -16.70, Overvalued between 39.88 and 68.17, and Strongly Overvalued above 68.17. The current Forward P/FCF of 21.48 falls within the Historic Trend Line -Fairly Valued range.

Jacobs Solutions Inc (J) has a current Price-to-Book (P/B) ratio of 4.55. Compared to its 3-year average P/B ratio of 2.91 , the current P/B ratio is approximately 56.49% higher. Relative to its 5-year average P/B ratio of 2.83, the current P/B ratio is about 60.66% higher. Jacobs Solutions Inc (J) has a Forward Free Cash Flow (FCF) yield of approximately 2.36%. Compared to its 3-year average FCF yield of 4.05%, the current FCF yield is approximately -41.82% lower. Relative to its 5-year average FCF yield of 4.25% , the current FCF yield is about -44.54% lower.

4.55

P/B

Median3y

2.91

Median5y

2.83

2.36

FCF Yield

Median3y

4.05

Median5y

4.25

Competitors Valuation Multiple

The average P/S ratio for J's competitors is 4.50, providing a benchmark for relative valuation. Jacobs Solutions Inc Corp (J) exhibits a P/S ratio of 1.38, which is -69.35% above the industry average. Given its robust revenue growth of 5.15%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Factset Research Systems Inc

Akamai Technologies Inc

Tyler Technologies Inc

Performance Decomposition

Market capitalization of J increased by 4.74% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 3.16 to 6.31.

The secondary factor is the Revenue Growth, contributed 5.15%to the performance.

Overall, the performance of J in the past 1 year is driven by Margin Expansion. Which is more sustainable.

5.15%

2.88B → 3.03B

Revenue Growth

99.68%

3.16 → 6.31

Margin Expansion

-100.09%

-40.97K → 36.87

P/E Change

4.74%