AECOM (ACM) Two-Stage Excess Return Model - Discounting Cash Flows
AECOM
ACM (NYSE)

Estimated Value

USD

Market Price USD

* Values are not guaranteed, please do your own
research before making investment decisions.

Two-Stage Excess Return Model

Used to estimate the value of companies based on two stages of growth. An initial period of high growth, represented by [Sum of discounted excess returns in Growth Stage], followed by a period of stable growth, represented by [Discounted excess return in terminal stage]. Excess Return models are better suited to calculate the intrinsic value of a financial company than an enterprise valuation model (such as the Discounted Free Cash Flow Model).

Read more: GitHub Documentation

Interactive Assumptions

Results

Estimated Value 7.69 USD
Book value of equity invested 17.25 USD
Sum of discounted excess returns in Growth Stage -1.75 USD
Terminal stage EPS 1.11 USD
Terminal stage Book Value 18.81 USD
Terminal stage Equity Cost 1.61 USD
Discounted excess return in terminal stage -7.81 USD
Excess Returns in the Terminal Stage -11.77 USD
Terminal Cost of Equity (the discount rate) 8.55%
Terminal year's excess return -0.496 USD
Average historical Return on Equity 5.92%
Average historical Payout Ratio 77.09%
Payout Ratio in stable stage 26.64%
Yield of the U.S. 10 Year Treasury Bond 4.34%

Historical and Forecasted Data

In USD

Edit Chart Values 2025 2026 2027 2028 2029

amounts of USD except for #

2024 LTM 2025 2026 2027 2028 2029
Beginning Book Value 15.96 16.11 16.11 16.43 16.85 17.38 18.03
Ending Book Value 16.11 17.25 16.43 16.85 17.38 18.03 18.81
EPS 2.97 4.62 0.953 0.972 0.997 1.03 1.07
Return on Equity 18.18% 28.26% 5.92% 5.92% 5.92% 5.92% 5.92%
Dividend per Share 0.88 1.0 0.639 0.553 0.467 0.378 0.284
Payout Ratio 29.63% 21.65% 67% 56.91% 46.82% 36.73% 26.64%
Retained Earnings 2.09 3.62 0.315 0.419 0.53 0.65 0.782
Equity Cost 1.37 1.38 1.38 1.41 1.44 1.49 1.54
Cost of Equity 8.55% 8.55% 8.55% 8.55% 8.55% 8.55% 8.55%
Excess Return 1.6 3.24 -0.425 -0.433 -0.444 -0.458 -0.475
Discounted Excess Return
-0.391 -0.368 -0.347 -0.33 -0.315

amounts of USD except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Net Income 145.9 617.3 402.3 55.33 310.6 173.2 -186.4 -184 136.5 339.4 96.11 -154.8
Total Stockholders Equity 3,065 2,285 2,184 2,212 2,477 2,712 3,293 3,691 4,093 3,996 3,367 3,408
Return on Equity 5.92% 28.26% 18.18% 2.23% 11.45% 5.26% -5.05% -4.5% 3.42% 10.08% 2.82% -7.08%
Dividends Paid to Common Shareholders 117.2 132.5 119.3 99.8
Payout Ratio 69.75% 21.65% 29.63% 180% 67% 67% 67% 67% 67% 67% 67% 67%
Shares Outstanding 148.1 132.5 135.5 138.6 140.8 147.3 159 157 159.1 155.7 154.8 148.9
Earnings per Share 1.06 4.62 2.97 0.4 2.21 1.18 -1.17 -1.17 0.86 2.18 0.62 -1.04
Dividend per Share 0.867 1.0 0.88 0.72
Dividend Growth Rate 17.93% 13.64% 22.22%
Book Value 20.51 17.25 16.11 15.96 17.59 18.42 20.71 23.5 25.72 25.66 21.75 22.89
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Discounting Cash Flows

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