Aecom

ACM

IndustrialsEngineering & ConstructionNYSE

$80.59

Market Cap: $10.42B

Aecom (ACM) Valuation Summary

Updated May 9, 2026 06:11

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$13.29 – $68.94	$26.00	-67.7%
Growth Exit 10Y	$16.98 – $77.32	$30.90	-61.7%
EBITDA Exit 5Y	$38.02 – $76.56	$55.74	-30.8%
EBITDA Exit 10Y	$33.78 – $76.76	$52.24	-35.2%
▸ Trading Multiples
P/E	$98.85 – $247.61	$129.25	+60.4%
EV/EBITDA	$138.19 – $220.12	$112.68	+39.8%
EV/Revenue	$239.04 – $430.53	$233.72	+190.0%
▸ PEG
PEG Fair Value	$105.25 – $105.25	$105.25	+30.6%
▸ Earnings Power Value
Earnings Power Value	$41.34 – $66.57	$51.59	-36.0%
▸ Dividend Discount
Dividend Discount	$18.03 – $37.18	$25.68	-68.1%

Valuation History

DCF Analysis

Fair Value

$26.00

Market Price

$80.59

Upside / Downside

-67.7%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Aecom's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -51.1% to 4.9% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 106, DPO 60, DIO 60). At a 8.0% WACC with mid-year discounting, the terminal value (76% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $26.00 per share, suggesting ACM is overvalued by 67.7% at the current price of $80.59.

FCFF Present Value Calculation

WACC

8.00%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	346	368	389	408	427	438
(−) Net Interest	95	101	107	112	117	120
(+) D&A	127	114	101	95	88	90
EBITDA	568	582	596	615	633	648

(−) Tax	81	86	90	95	99	102
(−) CapEx	69	74	78	82	86	88
(−) ΔWC	124	143	138	125	132	135
Free Cash Flow (FCFF)	294	281	290	313	316	324

Terminal Value						5,889
WACC / Discount Rate	8.0%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	283	250	239	239	224	4,007

Enterprise Value	5,243
Projection Period	1,235	23.6%
Terminal Value	4,007	76.4%

(−) Current Net Debt	1,776

Equity Value	3,466
(/) Outstanding Shares	133

Fair Price	$26.00

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.0%	$37	$42	$48	$57	$69
7.0%	$28	$31	$35	$39	$46
8.0%	$21	$23	$26	$29	$33
9.0%	$17	$18	$20	$22	$24
10.0%	$13	$14	$16	$17	$19

Current price: $80.59. Green = undervalued, Red = overvalued.

Fair Value

$30.90

Market Price

$80.59

Upside / Downside

-61.7%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Aecom's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from -51.1% to 3.3% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 106, DPO 60, DIO 60). At a 8.0% WACC with mid-year discounting, the terminal value (61% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $30.90 per share, suggesting ACM is overvalued by 61.7% at the current price of $80.59.

FCFF Present Value Calculation

WACC

8.00%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	346	368	389	408	427	447	466	484	502	518	531
(−) Net Interest	95	101	107	112	117	123	128	133	138	142	146
(+) D&A	127	114	101	95	88	78	82	85	89	93	95
EBITDA	568	582	596	615	633	647	676	703	729	754	773

(−) Tax	81	86	90	95	99	104	108	113	117	121	124
(−) CapEx	69	74	78	82	86	89	93	97	100	104	106
(−) ΔWC	124	143	138	125	132	129	126	121	116	110	113
Free Cash Flow (FCFF)	294	281	290	313	316	325	348	372	396	420	430

Terminal Value											7,817
WACC / Discount Rate	8.0%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	283	250	239	239	224	213	211	209	206	202	3,620

Enterprise Value	5,895
Projection Period	2,275	38.6%
Terminal Value	3,620	61.4%

(−) Current Net Debt	1,776

Equity Value	4,119
(/) Outstanding Shares	133

Fair Price	$30.90

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.0%	$45	$50	$57	$65	$77
7.0%	$34	$37	$41	$45	$51
8.0%	$27	$29	$31	$34	$37
9.0%	$21	$22	$24	$26	$28
10.0%	$17	$18	$19	$20	$21

Current price: $80.59. Green = undervalued, Red = overvalued.

Fair Value

$55.72

Market Price

$80.59

Upside / Downside

-30.9%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Aecom's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -51.1% to 4.9% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 106, DPO 60, DIO 60). At a 8.0% WACC with mid-year discounting, the terminal value (87% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 18.1x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $55.74 per share, suggesting ACM is overvalued by 30.8% at the current price of $80.59.

FCFF Present Value Calculation

WACC

8.00%

3% – 20%

EV/EBITDA Exit Multiple

18.06x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	346	368	389	408	427	438
(−) Net Interest	95	101	107	112	117	120
(+) D&A	127	114	101	95	88	90
EBITDA	568	582	596	615	633	648

(−) Tax	81	86	90	95	99	—
(−) CapEx	69	74	78	82	86	—
(−) ΔWC	124	143	138	125	132	—
Free Cash Flow (FCF)	294	281	290	313	316	—

Peers' EBITDA Multiple						18.1x
Terminal Value						11,711
WACC / Discount Rate	8.00%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	283	250	239	239	224	7,970

Enterprise Value	9,205
Projection Period	1,235	13.4%
Terminal Value	7,970	86.6%

(−) Current Net Debt	1,776
Equity Value	7,429
(÷) Outstanding Shares	133M
Fair Price	$56	-30.9%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	14.1x	16.1x	18.1x	20.1x	22.1x
6.0%	$47	$55	$62	$69	$77
7.0%	$45	$52	$59	$66	$73
8.0%	$42	$49	$56	$62	$69
9.0%	$40	$47	$53	$59	$65
10.0%	$38	$44	$50	$56	$62

Current price: $80.59. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$52.23

Market Price

$80.59

Upside / Downside

-35.2%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Aecom's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from -51.1% to 3.3% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 106, DPO 60, DIO 60). At a 8.0% WACC with mid-year discounting, the terminal value (74% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 18.1x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $52.24 per share, suggesting ACM is overvalued by 35.2% at the current price of $80.59.

FCFF Present Value Calculation

WACC

8.00%

3% – 20%

EV/EBITDA Exit Multiple

18.06x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	346	368	389	408	427	447	466	484	502	518	531
(−) Net Interest	95	101	107	112	117	123	128	133	138	142	146
(+) D&A	127	114	101	95	88	78	82	85	89	93	95
EBITDA	568	582	596	615	633	647	676	703	729	754	773

(−) Tax	81	86	90	95	99	104	108	113	117	121	—
(−) CapEx	69	74	78	82	86	89	93	97	100	104	—
(−) ΔWC	124	143	138	125	132	129	126	121	116	110	—
Free Cash Flow (FCF)	294	281	290	313	316	325	348	372	396	420	—

Peers' EBITDA Multiple											18.1x
Terminal Value											13,958
WACC / Discount Rate	8.00%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	283	250	239	239	224	213	211	209	206	202	6,464

Enterprise Value	8,739
Projection Period	2,275	26.0%
Terminal Value	6,464	74.0%

(−) Current Net Debt	1,776
Equity Value	6,963
(÷) Outstanding Shares	133M
Fair Price	$52	-35.2%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	14.1x	16.1x	18.1x	20.1x	22.1x
6.0%	$51	$57	$64	$70	$77
7.0%	$46	$52	$58	$64	$70
8.0%	$42	$47	$52	$58	$63
9.0%	$37	$42	$47	$52	$57
10.0%	$34	$38	$43	$47	$52

Current price: $80.59. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$129.25

Market Price

$80.59

Upside / Downside

+60.4%

Verdict

Undervalued

Using the industry peer median P/E Multiples multiple (trailing + forward), Aecom (ACM) has a fair value of $129.25 based on 8 comparable companies in the Engineering & Construction industry.

P/E Valuation — Engineering & Construction

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
AecomACM	10,744	19.1x	18.0x
MasTec, Inc.MTZ	32,737	81.7x	47.1x
FTAI Aviation Ltd.FTAI	27,727	58.8x	38.5x
J.B. Hunt Transport Services, Inc.JBHT	23,141	40.1x	33.5x
Expeditors International of Washington, Inc.EXPD	20,837	26.3x	28.6x
C.H. Robinson Worldwide, Inc.CHRW	20,202	35.5x	27.8x
Snap-on IncorporatedSNA	19,201	19.3x	19.1x
Lennox International Inc.LII	18,140	23.5x	21.5x
Pentair plcPNR	12,760	19.9x	16.1x
Industry Median		30.9x	28.2x
(*) Profit after tax		562	598
Equity Value		17,364	17,097
(/) Outstanding shares		133	133
Fair Price		$130	$128

Selected Fair Value (avg of trailing + forward)

$129.25

+60.4%

Fair Value

$112.68

Market Price

$80.59

Upside / Downside

+39.8%

Verdict

Undervalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), Aecom (ACM) has a fair value of $112.68 based on 9 comparable companies in the Engineering & Construction industry.

EV/EBITDA Valuation — Engineering & Construction

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
AecomACM	10,744	9.8x	22.0x
MasTec, Inc.MTZ	32,737	31.5x	25.8x
FTAI Aviation Ltd.FTAI	27,727	28.6x	20.7x
J.B. Hunt Transport Services, Inc.JBHT	23,141	15.8x	14.7x
Expeditors International of Washington, Inc.EXPD	20,837	17.5x	18.5x
C.H. Robinson Worldwide, Inc.CHRW	20,202	24.4x	23.5x
Snap-on IncorporatedSNA	19,201	12.7x	13.9x
APi Group CorporationAPG	19,079	24.4x	27.5x
Lennox International Inc.LII	18,140	18.1x	16.7x
Pentair plcPNR	12,760	15.2x	15.2x
Industry Median		18.1x	18.5x
(*) EBITDA		1,276	570
= Enterprise Value		23,045	10,550
(-) Net Debt		1,776	1,776
Equity Value		21,269	8,774
(/) Outstanding shares		133	133
Fair Price		$160	$66

Selected Fair Value (avg of trailing + forward)

$112.68

+39.8%

Fair Value

$233.72

Market Price

$80.59

Upside / Downside

+190.0%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Aecom (ACM) has a fair value of $233.72 based on 9 comparable companies in the Engineering & Construction industry.

EV/Revenue Valuation — Engineering & Construction

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
AecomACM	10,744	0.8x	1.7x
MasTec, Inc.MTZ	32,737	2.5x	2.0x
FTAI Aviation Ltd.FTAI	27,727	12.3x	8.9x
J.B. Hunt Transport Services, Inc.JBHT	23,141	2.1x	1.9x
Expeditors International of Washington, Inc.EXPD	20,837	1.8x	1.9x
C.H. Robinson Worldwide, Inc.CHRW	20,202	1.3x	1.3x
Snap-on IncorporatedSNA	19,201	3.7x	4.0x
APi Group CorporationAPG	19,079	2.7x	3.1x
Lennox International Inc.LII	18,140	3.9x	3.6x
Pentair plcPNR	12,760	3.4x	3.4x
Industry Median		2.7x	3.1x
(*) Revenue		16,140	7,209
= Enterprise Value		43,770	22,096
(-) Net Debt		1,776	1,776
Equity Value		41,994	20,320
(/) Outstanding shares		133	133
Fair Price		$315	$152

Selected Fair Value (avg of trailing + forward)

$233.72

+190.0%

PEG Fair Value

Fair Value

$105.25

Market Price

$80.59

Upside / Downside

+30.6%

Verdict

Undervalued

Using the PEG framework with historical EPS growth of 25.0% plus 1.3% dividend yield, the company has a fair value of $105.25 based on TTM EPS (FY2025) of $4.21. The current PEG ratio is 0.49.

PEG Ratio

0.49Deep Value

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 19.1 ÷ (38.0% + 1.3%) = 0.49

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Fast GrowerPEG moderately applicable

Growth above 25% is capped — hypergrowth may not be sustainable long-term.

Fair Value Calculation

EPS Growth RateHistorical	38.0%
Dividend Yield	+1.3%
Adjusted Growth (clamped 8–25%)Clamped	25.0%
Fair P/E	25.0x
TTM EPS (FY2025)	$4.21
Fair Value	$105.25

Growth Analysis

Forward Growth

No analyst estimates available.

Historical GrowthActive

Year	Net Income	EPS	YoY
FY2021	$173.2M	$1.16	—
FY2022	$310.6M	$2.18	+87.9%
FY2023	$55.3M	$0.39	-82.1%
FY2024	$402.3M	$2.95	+656.4%
FY2025	$561.8M	$4.21	+42.7%

4Y Historical EPS CAGR: 38.0%

Earnings Power Value

Fair Value

$51.59

Market Price

$80.59

Upside / Downside

-36.0%

Verdict

Overvalued

Using the Earnings Power Value framework with a WACC of 8.0% and normalized earnings of $692.5M, the company has a fair value of $51.59 per share. The EPV range is $41.34 – $66.57 based on WACC sensitivity (6.5% – 9.5%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	693	693	693
(/) WACC	9.5%	8.0%	6.5%
Enterprise Value	7,288	8,654	10,650
(-) Net debt	1,776	1,776	1,776
Equity Value	5,512	6,878	8,874
(/) Outstanding shares	133	133	133
Fair Price	$41.34	$51.59	$66.57

Dividend Discount Model

Fair Value

$25.68

Market Price

$80.59

Upside / Downside

-68.1%

Verdict

Overvalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 9.2% and projected dividend growth of 15.0%, the fair value is $25.68 per share. The DDM range is $18.03 – $37.18 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$1.00

Dividend Yield

1.28%

Payout Ratio

23.8%

Dividend Coverage

4.21x

FCF Payout Ratio19.5%

DPS CAGR (3Y)31.2%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$1.00	23.8%	+18.6%
2024	$0.84	28.6%	+23.0%
2023	$0.69	173.8%	+54.8%
2022	$0.44	20.4%	—
2021	—	0.0%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$1.15	15.0%	0.9157	$1.06
2027	$1.33	15.0%	0.8385	$1.11
2028	$1.52	15.0%	0.7677	$1.17
2029	$1.75	15.0%	0.7030	$1.23
2030	$2.02	15.0%	0.6437	$1.30
Terminal Value	$2.07 DPS	2.5%		$19.82

PV of Projected Dividends$5.87

PV of Terminal Value$19.82

Fair Value per Share$25.68

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	13.0%	14.0%	15.0%	15.0%	15.0%
7.2%	$34	$36	$37	$37	$37
8.2%	$28	$29	$30	$30	$30
9.2%	$24	$25	$26	$26	$26
10.2%	$21	$21	$22	$22	$22
11.2%	$18	$19	$19	$19	$19

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Aecom (ACM) Valuation Summary

Updated May 9, 2026 06:11

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$13.29 – $68.94	$26.00	-67.7%
Growth Exit 10Y	$16.98 – $77.32	$30.90	-61.7%
EBITDA Exit 5Y	$38.02 – $76.56	$55.74	-30.8%
EBITDA Exit 10Y	$33.78 – $76.76	$52.24	-35.2%
▸ Trading Multiples
P/E	$98.85 – $247.61	$129.25	+60.4%
EV/EBITDA	$138.19 – $220.12	$112.68	+39.8%
EV/Revenue	$239.04 – $430.53	$233.72	+190.0%
▸ PEG
PEG Fair Value	$105.25 – $105.25	$105.25	+30.6%
▸ Earnings Power Value
Earnings Power Value	$41.34 – $66.57	$51.59	-36.0%
▸ Dividend Discount
Dividend Discount	$18.03 – $37.18	$25.68	-68.1%

Valuation History

DCF Analysis

Fair Value

$26.00

Market Price

$80.59

Upside / Downside

-67.7%

Verdict

Overvalued

FCFF Present Value Calculation

WACC

8.00%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	346	368	389	408	427	438
(−) Net Interest	95	101	107	112	117	120
(+) D&A	127	114	101	95	88	90
EBITDA	568	582	596	615	633	648

(−) Tax	81	86	90	95	99	102
(−) CapEx	69	74	78	82	86	88
(−) ΔWC	124	143	138	125	132	135
Free Cash Flow (FCFF)	294	281	290	313	316	324

Terminal Value						5,889
WACC / Discount Rate	8.0%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	283	250	239	239	224	4,007

Enterprise Value	5,243
Projection Period	1,235	23.6%
Terminal Value	4,007	76.4%

(−) Current Net Debt	1,776

Equity Value	3,466
(/) Outstanding Shares	133

Fair Price	$26.00

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.0%	$37	$42	$48	$57	$69
7.0%	$28	$31	$35	$39	$46
8.0%	$21	$23	$26	$29	$33
9.0%	$17	$18	$20	$22	$24
10.0%	$13	$14	$16	$17	$19

Current price: $80.59. Green = undervalued, Red = overvalued.

Fair Value

$30.90

Market Price

$80.59

Upside / Downside

-61.7%

Verdict

Overvalued

FCFF Present Value Calculation

WACC

8.00%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	346	368	389	408	427	447	466	484	502	518	531
(−) Net Interest	95	101	107	112	117	123	128	133	138	142	146
(+) D&A	127	114	101	95	88	78	82	85	89	93	95
EBITDA	568	582	596	615	633	647	676	703	729	754	773

(−) Tax	81	86	90	95	99	104	108	113	117	121	124
(−) CapEx	69	74	78	82	86	89	93	97	100	104	106
(−) ΔWC	124	143	138	125	132	129	126	121	116	110	113
Free Cash Flow (FCFF)	294	281	290	313	316	325	348	372	396	420	430

Terminal Value											7,817
WACC / Discount Rate	8.0%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	283	250	239	239	224	213	211	209	206	202	3,620

Enterprise Value	5,895
Projection Period	2,275	38.6%
Terminal Value	3,620	61.4%

(−) Current Net Debt	1,776

Equity Value	4,119
(/) Outstanding Shares	133

Fair Price	$30.90

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.0%	$45	$50	$57	$65	$77
7.0%	$34	$37	$41	$45	$51
8.0%	$27	$29	$31	$34	$37
9.0%	$21	$22	$24	$26	$28
10.0%	$17	$18	$19	$20	$21

Current price: $80.59. Green = undervalued, Red = overvalued.

Fair Value

$55.72

Market Price

$80.59

Upside / Downside

-30.9%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Aecom's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -51.1% to 4.9% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 106, DPO 60, DIO 60). At a 8.0% WACC with mid-year discounting, the terminal value (87% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 18.1x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $55.74 per share, suggesting ACM is overvalued by 30.8% at the current price of $80.59.

FCFF Present Value Calculation

WACC

8.00%

3% – 20%

EV/EBITDA Exit Multiple

18.06x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	346	368	389	408	427	438
(−) Net Interest	95	101	107	112	117	120
(+) D&A	127	114	101	95	88	90
EBITDA	568	582	596	615	633	648

(−) Tax	81	86	90	95	99	—
(−) CapEx	69	74	78	82	86	—
(−) ΔWC	124	143	138	125	132	—
Free Cash Flow (FCF)	294	281	290	313	316	—

Peers' EBITDA Multiple						18.1x
Terminal Value						11,711
WACC / Discount Rate	8.00%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	283	250	239	239	224	7,970

Enterprise Value	9,205
Projection Period	1,235	13.4%
Terminal Value	7,970	86.6%

(−) Current Net Debt	1,776
Equity Value	7,429
(÷) Outstanding Shares	133M
Fair Price	$56	-30.9%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	14.1x	16.1x	18.1x	20.1x	22.1x
6.0%	$47	$55	$62	$69	$77
7.0%	$45	$52	$59	$66	$73
8.0%	$42	$49	$56	$62	$69
9.0%	$40	$47	$53	$59	$65
10.0%	$38	$44	$50	$56	$62

Current price: $80.59. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$52.23

Market Price

$80.59

Upside / Downside

-35.2%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Aecom's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from -51.1% to 3.3% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 106, DPO 60, DIO 60). At a 8.0% WACC with mid-year discounting, the terminal value (74% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 18.1x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $52.24 per share, suggesting ACM is overvalued by 35.2% at the current price of $80.59.

FCFF Present Value Calculation

WACC

8.00%

3% – 20%

EV/EBITDA Exit Multiple

18.06x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	346	368	389	408	427	447	466	484	502	518	531
(−) Net Interest	95	101	107	112	117	123	128	133	138	142	146
(+) D&A	127	114	101	95	88	78	82	85	89	93	95
EBITDA	568	582	596	615	633	647	676	703	729	754	773

(−) Tax	81	86	90	95	99	104	108	113	117	121	—
(−) CapEx	69	74	78	82	86	89	93	97	100	104	—
(−) ΔWC	124	143	138	125	132	129	126	121	116	110	—
Free Cash Flow (FCF)	294	281	290	313	316	325	348	372	396	420	—

Peers' EBITDA Multiple											18.1x
Terminal Value											13,958
WACC / Discount Rate	8.00%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	283	250	239	239	224	213	211	209	206	202	6,464

Enterprise Value	8,739
Projection Period	2,275	26.0%
Terminal Value	6,464	74.0%

(−) Current Net Debt	1,776
Equity Value	6,963
(÷) Outstanding Shares	133M
Fair Price	$52	-35.2%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	14.1x	16.1x	18.1x	20.1x	22.1x
6.0%	$51	$57	$64	$70	$77
7.0%	$46	$52	$58	$64	$70
8.0%	$42	$47	$52	$58	$63
9.0%	$37	$42	$47	$52	$57
10.0%	$34	$38	$43	$47	$52

Current price: $80.59. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$129.25

Market Price

$80.59

Upside / Downside

+60.4%

Verdict

Undervalued

Using the industry peer median P/E Multiples multiple (trailing + forward), Aecom (ACM) has a fair value of $129.25 based on 8 comparable companies in the Engineering & Construction industry.

P/E Valuation — Engineering & Construction

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
AecomACM	10,744	19.1x	18.0x
MasTec, Inc.MTZ	32,737	81.7x	47.1x
FTAI Aviation Ltd.FTAI	27,727	58.8x	38.5x
J.B. Hunt Transport Services, Inc.JBHT	23,141	40.1x	33.5x
Expeditors International of Washington, Inc.EXPD	20,837	26.3x	28.6x
C.H. Robinson Worldwide, Inc.CHRW	20,202	35.5x	27.8x
Snap-on IncorporatedSNA	19,201	19.3x	19.1x
Lennox International Inc.LII	18,140	23.5x	21.5x
Pentair plcPNR	12,760	19.9x	16.1x
Industry Median		30.9x	28.2x
(*) Profit after tax		562	598
Equity Value		17,364	17,097
(/) Outstanding shares		133	133
Fair Price		$130	$128

Selected Fair Value (avg of trailing + forward)

$129.25

+60.4%

Fair Value

$112.68

Market Price

$80.59

Upside / Downside

+39.8%

Verdict

Undervalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), Aecom (ACM) has a fair value of $112.68 based on 9 comparable companies in the Engineering & Construction industry.

EV/EBITDA Valuation — Engineering & Construction

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
AecomACM	10,744	9.8x	22.0x
MasTec, Inc.MTZ	32,737	31.5x	25.8x
FTAI Aviation Ltd.FTAI	27,727	28.6x	20.7x
J.B. Hunt Transport Services, Inc.JBHT	23,141	15.8x	14.7x
Expeditors International of Washington, Inc.EXPD	20,837	17.5x	18.5x
C.H. Robinson Worldwide, Inc.CHRW	20,202	24.4x	23.5x
Snap-on IncorporatedSNA	19,201	12.7x	13.9x
APi Group CorporationAPG	19,079	24.4x	27.5x
Lennox International Inc.LII	18,140	18.1x	16.7x
Pentair plcPNR	12,760	15.2x	15.2x
Industry Median		18.1x	18.5x
(*) EBITDA		1,276	570
= Enterprise Value		23,045	10,550
(-) Net Debt		1,776	1,776
Equity Value		21,269	8,774
(/) Outstanding shares		133	133
Fair Price		$160	$66

Selected Fair Value (avg of trailing + forward)

$112.68

+39.8%

Fair Value

$233.72

Market Price

$80.59

Upside / Downside

+190.0%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Aecom (ACM) has a fair value of $233.72 based on 9 comparable companies in the Engineering & Construction industry.

EV/Revenue Valuation — Engineering & Construction

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
AecomACM	10,744	0.8x	1.7x
MasTec, Inc.MTZ	32,737	2.5x	2.0x
FTAI Aviation Ltd.FTAI	27,727	12.3x	8.9x
J.B. Hunt Transport Services, Inc.JBHT	23,141	2.1x	1.9x
Expeditors International of Washington, Inc.EXPD	20,837	1.8x	1.9x
C.H. Robinson Worldwide, Inc.CHRW	20,202	1.3x	1.3x
Snap-on IncorporatedSNA	19,201	3.7x	4.0x
APi Group CorporationAPG	19,079	2.7x	3.1x
Lennox International Inc.LII	18,140	3.9x	3.6x
Pentair plcPNR	12,760	3.4x	3.4x
Industry Median		2.7x	3.1x
(*) Revenue		16,140	7,209
= Enterprise Value		43,770	22,096
(-) Net Debt		1,776	1,776
Equity Value		41,994	20,320
(/) Outstanding shares		133	133
Fair Price		$315	$152

Selected Fair Value (avg of trailing + forward)

$233.72

+190.0%

PEG Fair Value

Fair Value

$105.25

Market Price

$80.59

Upside / Downside

+30.6%

Verdict

Undervalued

Using the PEG framework with historical EPS growth of 25.0% plus 1.3% dividend yield, the company has a fair value of $105.25 based on TTM EPS (FY2025) of $4.21. The current PEG ratio is 0.49.

PEG Ratio

0.49Deep Value

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 19.1 ÷ (38.0% + 1.3%) = 0.49

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Fast GrowerPEG moderately applicable

Growth above 25% is capped — hypergrowth may not be sustainable long-term.

Fair Value Calculation

EPS Growth RateHistorical	38.0%
Dividend Yield	+1.3%
Adjusted Growth (clamped 8–25%)Clamped	25.0%
Fair P/E	25.0x
TTM EPS (FY2025)	$4.21
Fair Value	$105.25

Growth Analysis

Forward Growth

No analyst estimates available.

Historical GrowthActive

Year	Net Income	EPS	YoY
FY2021	$173.2M	$1.16	—
FY2022	$310.6M	$2.18	+87.9%
FY2023	$55.3M	$0.39	-82.1%
FY2024	$402.3M	$2.95	+656.4%
FY2025	$561.8M	$4.21	+42.7%

4Y Historical EPS CAGR: 38.0%

Earnings Power Value

Fair Value

$51.59

Market Price

$80.59

Upside / Downside

-36.0%

Verdict

Overvalued

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	693	693	693
(/) WACC	9.5%	8.0%	6.5%
Enterprise Value	7,288	8,654	10,650
(-) Net debt	1,776	1,776	1,776
Equity Value	5,512	6,878	8,874
(/) Outstanding shares	133	133	133
Fair Price	$41.34	$51.59	$66.57

Dividend Discount Model

Fair Value

$25.68

Market Price

$80.59

Upside / Downside

-68.1%

Verdict

Overvalued

Dividend Profile

Current DPS

$1.00

Dividend Yield

1.28%

Payout Ratio

23.8%

Dividend Coverage

4.21x

FCF Payout Ratio19.5%

DPS CAGR (3Y)31.2%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$1.00	23.8%	+18.6%
2024	$0.84	28.6%	+23.0%
2023	$0.69	173.8%	+54.8%
2022	$0.44	20.4%	—
2021	—	0.0%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$1.15	15.0%	0.9157	$1.06
2027	$1.33	15.0%	0.8385	$1.11
2028	$1.52	15.0%	0.7677	$1.17
2029	$1.75	15.0%	0.7030	$1.23
2030	$2.02	15.0%	0.6437	$1.30
Terminal Value	$2.07 DPS	2.5%		$19.82

PV of Projected Dividends$5.87

PV of Terminal Value$19.82

Fair Value per Share$25.68

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	13.0%	14.0%	15.0%	15.0%	15.0%
7.2%	$34	$36	$37	$37	$37
8.2%	$28	$29	$30	$30	$30
9.2%	$24	$25	$26	$26	$26
10.2%	$21	$21	$22	$22	$22
11.2%	$18	$19	$19	$19	$19