Jacobs Solutions Inc. (J) DCF Valuation
TGM's two-stage DCF values Jacobs Solutions Inc. (J) between $85.98 and $162.18 depending on assumptions, with a base case of $111.85. Growth is taken from the company's own record (5-year revenue CAGR (FCF growth too volatile to use) (floored at 2%)), fading to 2.5% long-run; the discount rate (7.6%) reflects its beta.
What would today's price require?
$120.97 is justified only if free cash flow grows about +3.7% a year (fading to 2.5% long-run) at a 7.6% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 0.5%/yr | 8.6% | $85.98 |
| Base case | 2.0%/yr | 7.6% | $111.85 |
| Optimistic | 5.0%/yr | 6.6% | $162.18 |
| Analyst DCF (FMP) | independent reference — different model | $106.15 | |
Current Price
$120.97
Market-Implied Growth
+3.7%/yr
vs -12.0% 5Y actual
Model Scenario Range
$85.98 – $162.18
model output — not a price target
J DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for J (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $722.4M · 0.12B shares · net debt $1.0B
Estimated Fair Value
$109.70
-9.3% vs $120.97
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 2.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $120.97; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.6% | $149 | $165 | $185 | $214 | $255 |
| 6.6% | $118 | $127 | $138 | $153 | $171 |
| 7.6% | $97.31 | $103 | $110 | $118 | $128 |
| 8.6% | $82.28 | $86.07 | $90.48 | $95.67 | $102 |
| 9.6% | $70.97 | $73.63 | $76.66 | $80.14 | $84.20 |
About Jacobs Solutions Inc.
Jacobs Solutions Inc. is a global firm providing expertise in infrastructure, advanced facilities, and consulting across numerous regions, including the United States, Europe, Canada, India, Asia, Australia, New Zealand, the Middle East, and Africa. The company offers a wide array of professional services, from planning, architecture, design, and engineering to comprehensive infrastructure delivery, which includes project, program, and construction management, as well as ongoing facility operations. Additionally, it furnishes specialized consulting services for various industries, such as consumer and manufacturing, defense and security, energy and utilities, financial services, government, health and life sciences, and transport sectors. Founded in 1947, its corporate headquarters are situated in Dallas, Texas.
- Sector
- Industrials
- Industry
- Engineering & Construction
- CEO
- Robert V. Pragada