Tetra Tech is a provider of consulting, engineering, program management, and construction management services. The Company supports commercial and government clients focused on water, environment, infrastructure, resource management, and energy. The company was founded in 1966 and is based in Pasadena, California.
TTEK Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for TTEK, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Tetra Tech Inc ranked in the 33th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Tetra Tech Inc, consider:
The company's balance sheet shows it gets 90% of its capital from equity, and 10% of its capital from debt. Its equity weight surpasses that of 79.04% of free cash flow generating stocks in the Industrials sector.
The business' balance sheet reveals debt to be 10% of the company's capital (with equity being the remaining amount). Approximately only 24.52% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
TTEK'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 43.18% 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 TTEK, try ITW, WHLM, EMR, LII, and PAYX.