Jacobs Solutions Inc.

IndustrialsEngineering & ConstructionNYSE

$114.15

Market Cap: $13.48B

Jacobs Solutions Inc. (J) Valuation Summary

Updated Apr 6, 2026 22:26

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$30.72 – $148.70	$57.06	-55.4%
Growth Exit 10Y	$19.67 – $87.83	$35.36	-72.4%
EBITDA Exit 5Y	$18.87 – $60.13	$37.77	-70.5%
EBITDA Exit 10Y	$18.96 – $55.66	$34.63	-73.0%
▸ Trading Multiples
P/E	$45.45 – $89.87	$81.03	-36.7%
EV/EBITDA	$64.09 – $155.69	$68.20	-46.7%
EV/Revenue	$270.47 – $474.14	$419.00	+227.2%
▸ PEG
PEG Fair Value	$178.84 – $178.84	$178.84	+39.7%
▸ Earnings Power Value
Earnings Power Value	$34.44 – $56.28	$43.29	-66.2%
▸ Dividend Discount
Dividend Discount	$21.73 – $50.89	$31.44	-75.4%

Valuation History

DCF Analysis

Fair Value

$57.06

Market Price

$114.15

Upside / Downside

-50.0%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Jacobs Solutions Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -21.8% to -3.9% 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 94, DPO 43, DIO 60). At a 7.9% WACC with mid-year discounting, the terminal value (90% 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 $57.06 per share, suggesting J is overvalued by 50.0% at the current price of $114.15.

FCFF Present Value Calculation

WACC

7.92%

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	449	477	511	491	472	484
(−) Net Interest	109	115	124	119	114	117
(+) D&A	112	112	106	100	96	98
EBITDA	669	703	740	709	682	699

(−) Tax	116	123	132	127	122	125
(−) CapEx	93	99	106	102	98	100
(−) ΔWC	1,026	169	210	-122	-117	-120
Free Cash Flow (FCFF)	-566	312	292	602	579	593

Terminal Value						10,948
WACC / Discount Rate	7.9%
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	-545	278	241	461	411	7,479

Enterprise Value	8,326
Projection Period	847	10.2%
Terminal Value	7,479	89.8%

(−) Current Net Debt	1,474

Equity Value	6,852
(/) Outstanding Shares	120

Fair Price	$57.06

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.9%	$79	$90	$104	$122	$149
6.9%	$60	$67	$75	$85	$99
7.9%	$47	$52	$57	$63	$71
8.9%	$38	$41	$45	$49	$54
9.9%	$31	$33	$36	$39	$42

Current price: $114.15. Green = undervalued, Red = overvalued.

Fair Value

$35.36

Market Price

$114.15

Upside / Downside

-69.0%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Jacobs Solutions Inc.'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 -21.8% to 1.9% 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 94, DPO 43, DIO 60). At a 7.9% WACC with mid-year discounting, the terminal value (62% 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 $35.36 per share, suggesting J is overvalued by 69.0% at the current price of $114.15.

FCFF Present Value Calculation

WACC

7.92%

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	449	477	511	491	472	459	452	450	453	461	473
(−) Net Interest	109	115	124	119	114	111	109	109	110	112	114
(+) D&A	112	112	106	100	96	99	100	99	96	95	97
EBITDA	669	703	740	709	682	669	661	657	659	668	684

(−) Tax	116	123	132	127	122	119	117	116	117	119	122
(−) CapEx	93	99	106	102	98	95	94	93	94	96	98
(−) ΔWC	1,026	169	210	-122	-117	-79	-45	-12	20	51	53
Free Cash Flow (FCFF)	-566	312	292	602	579	535	495	460	428	401	411

Terminal Value											7,589
WACC / Discount Rate	7.9%
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	-545	278	241	461	411	352	302	260	224	194	3,542

Enterprise Value	5,720
Projection Period	2,178	38.1%
Terminal Value	3,542	61.9%

(−) Current Net Debt	1,474

Equity Value	4,246
(/) Outstanding Shares	120

Fair Price	$35.36

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.9%	$52	$57	$65	$74	$88
6.9%	$39	$43	$47	$52	$58
7.9%	$31	$33	$35	$38	$42
8.9%	$24	$26	$28	$29	$32
9.9%	$20	$21	$22	$23	$25

Current price: $114.15. Green = undervalued, Red = overvalued.

Fair Value

$37.79

Market Price

$114.15

Upside / Downside

-66.9%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Jacobs Solutions Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -21.8% to -3.9% 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 94, DPO 43, DIO 60). At a 7.9% WACC with mid-year discounting, the terminal value (86% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 10.8x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $37.77 per share, suggesting J is overvalued by 66.9% at the current price of $114.15.

FCFF Present Value Calculation

WACC

7.92%

3% – 20%

EV/EBITDA Exit Multiple

10.82x

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	449	477	511	491	472	484
(−) Net Interest	109	115	124	119	114	117
(+) D&A	112	112	106	100	96	98
EBITDA	669	703	740	709	682	699

(−) Tax	116	123	132	127	122	—
(−) CapEx	93	99	106	102	98	—
(−) ΔWC	1,026	169	210	-122	-117	—
Free Cash Flow (FCF)	-566	312	292	602	579	—

Peers' EBITDA Multiple						10.8x
Terminal Value						7,561
WACC / Discount Rate	7.92%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	-545	278	241	461	411	5,165

Enterprise Value	6,012
Projection Period	847	14.1%
Terminal Value	5,165	85.9%

(−) Current Net Debt	1,474
Equity Value	4,538
(÷) Outstanding Shares	120M
Fair Price	$38	-66.9%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	6.8x	8.8x	10.8x	12.8x	14.8x
5.9%	$25	$34	$43	$51	$60
6.9%	$23	$32	$40	$48	$57
7.9%	$22	$30	$38	$46	$54
8.9%	$20	$28	$36	$43	$51
9.9%	$19	$26	$33	$41	$48

Current price: $114.15. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$34.64

Market Price

$114.15

Upside / Downside

-69.7%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Jacobs Solutions Inc.'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 -21.8% to 1.9% 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 94, DPO 43, DIO 60). At a 7.9% WACC with mid-year discounting, the terminal value (61% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 10.8x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $34.63 per share, suggesting J is overvalued by 69.7% at the current price of $114.15.

FCFF Present Value Calculation

WACC

7.92%

3% – 20%

EV/EBITDA Exit Multiple

10.82x

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	449	477	511	491	472	459	452	450	453	461	473
(−) Net Interest	109	115	124	119	114	111	109	109	110	112	114
(+) D&A	112	112	106	100	96	99	100	99	96	95	97
EBITDA	669	703	740	709	682	669	661	657	659	668	684

(−) Tax	116	123	132	127	122	119	117	116	117	119	—
(−) CapEx	93	99	106	102	98	95	94	93	94	96	—
(−) ΔWC	1,026	169	210	-122	-117	-79	-45	-12	20	51	—
Free Cash Flow (FCF)	-566	312	292	602	579	535	495	460	428	401	—

Peers' EBITDA Multiple											10.8x
Terminal Value											7,404
WACC / Discount Rate	7.92%

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	-545	278	241	461	411	352	302	260	224	194	3,456

Enterprise Value	5,634
Projection Period	2,178	38.7%
Terminal Value	3,456	61.3%

(−) Current Net Debt	1,474
Equity Value	4,159
(÷) Outstanding Shares	120M
Fair Price	$35	-69.7%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	6.8x	8.8x	10.8x	12.8x	14.8x
5.9%	$30	$36	$43	$49	$56
6.9%	$27	$33	$39	$44	$50
7.9%	$24	$29	$35	$40	$45
8.9%	$21	$26	$31	$36	$41
9.9%	$19	$23	$28	$32	$37

Current price: $114.15. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$81.03

Market Price

$114.15

Upside / Downside

-29.0%

Verdict

Overvalued

Using the industry peer median P/E Multiples multiple (trailing + forward), Jacobs Solutions Inc. (J) has a fair value of $81.03 based on 9 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
Jacobs Solutions Inc.J	13,708	48.0x	16.4x
Corpay, Inc.CPAY	20,864	19.8x	15.7x
SS&C Technologies Holdings, Inc.SSNC	16,755	21.8x	10.0x
Trimble Inc.TRMB	15,482	37.2x	22.9x
Tyler Technologies, Inc.TYL	14,495	46.8x	35.3x
Logitech International S.A.LOGI	13,572	22.4x	16.7x
Gen Digital Inc.GEN	11,946	18.8x	9.9x
Gartner, Inc.IT	11,230	16.1x	13.1x
GoDaddy Inc.GDDY	11,192	13.3x	11.9x
Nutanix, Inc.NTNX	10,686	60.8x	32.1x
Industry Median		21.8x	15.7x
(*) Profit after tax		290	836
Equity Value		6,326	13,134
(/) Outstanding shares		120	120
Fair Price		$53	$109

Selected Fair Value (avg of trailing + forward)

$81.03

-29.0%

Fair Value

$68.20

Market Price

$114.15

Upside / Downside

-40.3%

Verdict

Overvalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), Jacobs Solutions Inc. (J) has a fair value of $68.20 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
Jacobs Solutions Inc.J	13,708	16.4x	18.1x
Corpay, Inc.CPAY	20,864	9.4x	10.7x
SS&C Technologies Holdings, Inc.SSNC	16,755	9.9x	9.2x
Trimble Inc.TRMB	15,482	21.8x	21.4x
Tyler Technologies, Inc.TYL	14,495	28.0x	30.6x
Logitech International S.A.LOGI	13,572	16.3x	15.3x
Gen Digital Inc.GEN	11,946	9.5x	9.8x
Gartner, Inc.IT	11,230	10.7x	11.1x
GoDaddy Inc.GDDY	11,192	10.8x	10.2x
Nutanix, Inc.NTNX	10,686	38.9x	46.2x
Industry Median		10.8x	11.1x
(*) EBITDA		927	837
= Enterprise Value		10,025	9,303
(-) Net Debt		1,474	1,474
Equity Value		8,551	7,829
(/) Outstanding shares		120	120
Fair Price		$71	$65

Selected Fair Value (avg of trailing + forward)

$68.20

-40.3%

Fair Value

$419.00

Market Price

$114.15

Upside / Downside

+267.1%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Jacobs Solutions Inc. (J) has a fair value of $419.00 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
Jacobs Solutions Inc.J	13,708	1.3x	1.4x
Corpay, Inc.CPAY	20,864	4.9x	5.5x
SS&C Technologies Holdings, Inc.SSNC	16,755	3.3x	3.1x
Trimble Inc.TRMB	15,482	4.6x	4.6x
Tyler Technologies, Inc.TYL	14,495	6.1x	6.6x
Logitech International S.A.LOGI	13,572	2.7x	2.5x
Gen Digital Inc.GEN	11,946	4.9x	5.1x
Gartner, Inc.IT	11,230	2.0x	2.1x
GoDaddy Inc.GDDY	11,192	2.8x	2.7x
Nutanix, Inc.NTNX	10,686	4.5x	5.3x
Industry Median		4.5x	4.6x
(*) Revenue		12,030	10,864
= Enterprise Value		54,034	49,545
(-) Net Debt		1,474	1,474
Equity Value		52,559	48,071
(/) Outstanding shares		120	120
Fair Price		$438	$400

Selected Fair Value (avg of trailing + forward)

$419.00

+267.1%

PEG Fair Value

Fair Value

$178.84

Market Price

$114.15

Upside / Downside

+56.7%

Verdict

Undervalued

Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 1.0% dividend yield, the company has a fair value of $178.84 based on NTM EPS (FY2026) of $7.15. The current PEG ratio is 0.32.

PEG Ratio

0.32Deep Value

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 17.9 ÷ (55.4% + 1.0%) = 0.32

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 RateForward	55.4%
Dividend Yield	+1.0%
Adjusted Growth (clamped 8–25%)Clamped	25.0%
Fair P/E	25.0x
NTM EPS (FY2026)	$7.15
Fair Value	$178.84

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$2.38	—	—
FY2026E	$7.15	+200.6%	6
FY2027E	$8.04	+12.4%	7
FY2028E	$8.93	+11.0%	4

3Y Forward EPS CAGR: 55.4%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$477.0M	$3.12	—
FY2022	$644.0M	$4.98	+59.6%
FY2023	$665.8M	$5.30	+6.4%
FY2024	$806.1M	$6.32	+19.2%
FY2025	$290.2M	$2.38	-62.3%

4Y Historical EPS CAGR: -6.5%

Earnings Power Value

Fair Value

$43.29

Market Price

$114.15

Upside / Downside

-62.1%

Verdict

Overvalued

Using the Earnings Power Value framework with a WACC of 7.9% and normalized earnings of $528.4M, the company has a fair value of $43.29 per share. The EPV range is $34.44 – $56.28 based on WACC sensitivity (6.4% – 9.4%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	528	528	528
(/) WACC	9.4%	7.9%	6.4%
Enterprise Value	5,610	6,673	8,233
(-) Net debt	1,474	1,474	1,474
Equity Value	4,136	5,199	6,758
(/) Outstanding shares	120	120	120
Fair Price	$34.44	$43.29	$56.28

Dividend Discount Model

Fair Value

$31.44

Market Price

$114.15

Upside / Downside

-72.5%

Verdict

Overvalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 8.8% and projected dividend growth of 12.2%, the fair value is $31.44 per share. The DDM range is $21.73 – $50.89 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$1.27

Dividend Yield

1.01%

Payout Ratio

52.7%

Dividend Coverage

1.90x

FCF Payout Ratio25.2%

DPS CAGR (4Y)10.6%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$1.27	52.7%	+12.4%
2024	$1.13	17.7%	+12.4%
2023	$1.01	19.3%	+12.7%
2022	$0.90	18.0%	+5.4%
2021	$0.85	23.4%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$1.43	12.2%	0.9195	$1.31
2027	$1.60	12.2%	0.8455	$1.36
2028	$1.80	12.2%	0.7774	$1.40
2029	$2.02	12.2%	0.7148	$1.44
2030	$2.27	12.2%	0.6573	$1.49
Terminal Value	$2.33 DPS	2.5%		$24.43

PV of Projected Dividends$7.01

PV of Terminal Value$24.43

Fair Value per Share$31.44

Sensitivity Analysis

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

Ke \ Growth	10.2%	11.2%	12.2%	13.2%	14.2%
6.8%	$43	$45	$47	$49	$51
7.8%	$35	$36	$38	$39	$41
8.8%	$29	$30	$31	$33	$34
9.8%	$25	$26	$27	$28	$29
10.8%	$22	$23	$24	$24	$25

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.