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:
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 58th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 58.17% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Acuity Brands Inc, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 14.94 -- which is good for besting 83.66% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
The business' balance sheet reveals debt to be 9% of the company's capital (with equity being the remaining amount). Approximately just 23.35% 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 36.76% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as AYI, try ARCB, BRC, DE, SNA, and PMTS.
The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st, a week after the market trough. Now, we are […]