Acuity Brands Valuation
| AYI Stock | USD 246.86 1.86 0.75% |
At this time, the firm appears to be overvalued. Acuity Brands shows a prevailing Real Value of $206.28 per share. The current price of the firm is $246.86. Our model approximates the value of Acuity Brands from analyzing the firm fundamentals such as Current Valuation of 7.53 B, return on equity of 0.18, and Profit Margin of 0.1 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor purchasing undervalued instruments and trading away overvalued instruments since, at some point, asset prices and their ongoing real values will blend. Key fundamental drivers impacting Acuity Brands' valuation include:
Price Book 3.6904 | Enterprise Value 7.5 B | Enterprise Value Ebitda 13.0522 | Price Sales 2.0598 | Forward PE 18.0505 |
Overvalued
Today
Please note that Acuity Brands' price fluctuation is very steady at this time. Calculation of the real value of Acuity Brands is based on 3 months time horizon. Increasing Acuity Brands' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Acuity Brands is useful when determining the fair value of the Acuity stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Acuity Brands. Since Acuity Brands is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Acuity Stock. However, Acuity Brands' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 246.86 | Real 206.28 | Target 188.57 | Hype 246.86 | Naive 241.07 |
The real value of Acuity Stock, also known as its intrinsic value, is the underlying worth of Acuity Brands Company, which is reflected in its stock price. It is based on Acuity Brands' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Acuity Brands' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Acuity Brands' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Acuity Brands helps investors to forecast how Acuity stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Acuity Brands more accurately as focusing exclusively on Acuity Brands' fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Acuity Brands' intrinsic value based on its ongoing forecasts of Acuity Brands' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Acuity Brands' closest peers. When choosing an evaluation method for Acuity Brands, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Acuity Brands Investments |
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Acuity Valuation Trend
Knowing Acuity Brands' actual value is paramount for traders to make sound investment determinations. Acuity Brands' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Acuity Brands' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Acuity Brands' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Acuity Market Cap
Acuity Brands is number one stock in market capitalization category among related companies. Market capitalization of Industrials industry is presently estimated at about 10.7 Billion. Acuity Brands totals roughly 7.6 Billion in market capitalization claiming about 71% of equities under Industrials industry.Acuity Brands Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Acuity Brands's current stock value. Our valuation model uses many indicators to compare Acuity Brands value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Acuity Brands competition to find correlations between indicators driving Acuity Brands's intrinsic value. More Info.Acuity Brands is rated fourth in price to earning category among related companies. It is rated second in price to book category among related companies fabricating about 0.21 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Acuity Brands is roughly 4.67 . The Acuity Brands' current Price To Book Ratio is estimated to increase to 2.51. Comparative valuation analysis is a catch-all model that can be used if you cannot value Acuity Brands by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Acuity Brands' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Acuity Brands' earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Acuity Brands' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Acuity Brands and how it compares across the competition.
About Acuity Brands Valuation
The stock valuation mechanism determines the current worth of Acuity Brands on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Acuity Brands. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Acuity Brands based exclusively on its fundamental and basic technical indicators. By analyzing Acuity Brands's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Acuity Brands's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Acuity Brands. We calculate exposure to Acuity Brands's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Acuity Brands's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2 B | 1.2 B | |
| Pretax Profit Margin | 0.10 | 0.07 | |
| Operating Profit Margin | 0.11 | 0.08 | |
| Net Profit Margin | 0.08 | 0.05 | |
| Gross Profit Margin | 0.39 | 0.33 |
Acuity Brands Quarterly Retained Earnings |
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8 Steps to conduct Acuity Brands' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Acuity Brands' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Acuity Brands' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Acuity Brands' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Acuity Brands' revenue streams: Identify Acuity Brands' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Acuity Brands' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Acuity Brands' growth potential: Evaluate Acuity Brands' management, business model, and growth potential.
- Determine Acuity Brands' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Acuity Brands' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Acuity Brands represents a small ownership stake in the entity. As a stockholder of Acuity, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Acuity Brands Dividends Analysis For Valuation
The Acuity Brands' current Dividends Paid is estimated to increase to about 17.8 M, while Dividend Yield is projected to decrease to 0. . As of now, Acuity Brands' Retained Earnings are increasing as compared to previous years. The Acuity Brands' current Retained Earnings Total Equity is estimated to increase to about 3.8 B, while Earnings Yield is projected to decrease to 0.06.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 15.1 M | 17.8 M | |
| Dividend Yield | 0 | 0 | |
| Dividend Payout Ratio | 0.06 | 0.05 | |
| Dividend Paid And Capex Coverage Ratio | (10.43) | (10.95) |
There are various types of dividends Acuity Brands can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Acuity shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Acuity Brands directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Acuity pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Acuity Brands by the value of the dividends paid out.
Acuity Brands Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Acuity Brands does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 32.2 M | |
| Quarterly Earnings Growth Y O Y | 0.105 | |
| Forward Price Earnings | 18.0505 |
Acuity Brands Current Valuation Indicators
Valuation refers to the process of determining the present value of Acuity Brands and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Acuity we look at many different elements of the entity such as Acuity's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Acuity Brands' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Acuity Brands' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Acuity Brands, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Acuity Brands' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Acuity Brands' worth.When determining whether Acuity Brands offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Acuity Brands' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Acuity Brands Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Acuity Brands Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Acuity Brands. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in manufacturing. For more detail on how to invest in Acuity Stock please use our How to Invest in Acuity Brands guide.You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Complementary Tools for Acuity Stock analysis
When running Acuity Brands' price analysis, check to measure Acuity Brands' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Acuity Brands is operating at the current time. Most of Acuity Brands' value examination focuses on studying past and present price action to predict the probability of Acuity Brands' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Acuity Brands' price. Additionally, you may evaluate how the addition of Acuity Brands to your portfolios can decrease your overall portfolio volatility.
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Is Acuity Brands' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Acuity Brands. If investors know Acuity will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Acuity Brands listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.105 | Dividend Share 0.54 | Earnings Share 11.94 | Revenue Per Share 123.491 | Quarterly Revenue Growth (0.04) |
The market value of Acuity Brands is measured differently than its book value, which is the value of Acuity that is recorded on the company's balance sheet. Investors also form their own opinion of Acuity Brands' value that differs from its market value or its book value, called intrinsic value, which is Acuity Brands' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Acuity Brands' market value can be influenced by many factors that don't directly affect Acuity Brands' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Acuity Brands' value and its price as these two are different measures arrived at by different means. Investors typically determine if Acuity Brands is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Acuity Brands' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.