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 65th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 160.33%. 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 83.2% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
The business' balance sheet suggests that 11% of the company's capital is sourced from debt; this is greater than just 23.26% of the free cash flow producing stocks we're observing.
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 35.94% 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 BV, CATM, FC, TIKK, and STN.
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. […]