Acuity Brands, Inc. (AYI): Price and Financial Metrics

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AYI Price/Volume Stats

Acuity Brands, Inc. (AYI) Company Bio

Acuity Brands designs, produces, and distributes lighting solutions, components, and services for commercial, institutional, industrial, infrastructure, and residential applications in North America and internationally. The company was founded in 2001 and is founded in Atlanta, Georgia.

AYI Price Forecast Based on DCF Valuation

Below please find a table outlining a discounted cash flow forecast for AYI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Acuity Brands Inc ranked in the 60th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for AYI, they are:

• AYI's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 32.09% of tickers in our DCF set.
• Acuity Brands Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 17.58. This coverage rate is greater than that of 83.83% of stocks we're observing for the purpose of forecasting via discounted cash flows.
• As a business, Acuity Brands Inc experienced a tax rate of about 18% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than 73.38% of stocks generating free cash flow.

TIKK, ESOA, AJRD, KSU, and MLHR can be thought of as valuation peers to AYI, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.