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
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Acuity Brands Inc. To summarize, we found that Acuity Brands Inc ranked in the 66th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 167.67% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for AYI, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 13.83 -- which is good for besting 83.67% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
The business' balance sheet reveals debt to be 10% of the company's capital (with equity being the remaining amount). Approximately just 22.91% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
AYI's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 36.22% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Acuity Brands Inc? See STN, TKR, DXPE, GPN, and OMAB.
To run their operations, companies need lighting - among other things. Moreover, this lighting has to be energy-efficient to give the world a shot at taking control over climate change. The LED lighting market has been intensively growing over the last decade. Its strength is a direct consequence of energy efficiency regulations and reduced technology costs. An average building uses about 15% of its energy for lighting, therefore the savings potential of LED lighting across the globe is immense. But, lighting has expanded beyond its traditional purpose of illumination to add additional value such as sustainability. Consequently, it has also become a highly competitive market. Below are four companies that are well-positioned to benefit from this growing trend.Acuity BrandsUnfortunately,...
Atlanta, Sept. 10, 2020 (GLOBE NEWSWIRE) -- Acuity Brands, Inc. (NYSE: AYI) will host a conference call on Thursday, October 8, 2020, at 10:00 a.m. (EDT) to discuss the Company’s performance for the fourth quarter of fiscal 2020, following the announcement of those results earlier that day. Neil M. Ashe, President and Chief Executive Officer of Acuity Brands, will lead the call. A live Webcast of the discussion will be accessible at the Company’s Website: www.acuitybrands.com. A replay of the call will also be posted to that site within two hours of the completion of the conference call and will be archived on the site. About Acuity Brands Acuity Brands, Inc. (NYSE: AYI) is a market-leading industrial technology company. We design, manufacture, and bring to market innovative pro...
At the end of February we announced the arrival of the first US recession since 2009 and we predicted that the market will decline by at least 20% in (see why hell is coming). We reversed our stance on March 25th after seeing unprecedented fiscal and monetary stimulus unleashed by the Fed and the Congress. […]