J Jacobs Solutions
Intrinsic value$25.78
Price (at call)$143.91
Margin of safety
-82.1%
vs market (rating basis)
-50.0%
Model unavailable; showing baseline valuation.
⚠ LLM error: unbalanced JSON in response: '{\n "story": "Jacobs Solutions is a mature engineering/services firm growing revenue at ~7% CAGR but with deteriorating operating margins—down to 4.7% TTM from an 8.2% peak. Life Sciences and AI initi'; using baseline
The story
Value drivers
| Revenue growth (Y1) | 7.1% |
| Terminal growth | 3.5% |
| Forecast horizon | 10y |
| Target operating margin | 4.7% |
| Years to target margin | 5 |
| Sales-to-capital | 2.42 |
| Beta | 0.67 |
| Failure probability | 0.0% |
| Cost of capital (WACC) | 7.2% |
| Terminal WACC | 8.5% |
Valuation bridge
| PV of explicit FCFF | 1.28B |
| PV of terminal value | 4.42B |
| Equity value | 3.04B |
| ÷ shares → per share | $25.78 |
News
neutral +0.10 · 8 articles
- Jacobs Solutions' Life Sciences, AI Businesses to Drive Growth, RBC Says
- 2 Cash-Producing Stocks on Our Buy List and 1 We Ignore
- 5 Revealing Analyst Questions From Jacobs Solutions’s Q2 Earnings Call
- Jacobs Solutions (J) Q3 2026 Earnings Call Transcript
- Fluor's Profit Jump Was Borrowed From Its Own Second Half
- Could Bigger EPC Jobs Push Argan Toward $2B Revenues Faster?
- How Jacobs' AI Infrastructure Push Could Drive Its Next Growth Phase
- Is Jacobs Stock a Buy as Strong Growth Meets Execution & Debt Risks?
Projected free cash flow to the firm
| Yr | Revenue | Growth | Margin | NOPAT | Reinvest | FCFF | PV |
|---|---|---|---|---|---|---|---|
| 1 | 15.23B | 7.1% | 4.7% | 467.67M | 419.29M | 48.39M | 45.13M |
| 2 | 16.26B | 6.7% | 4.7% | 499.15M | 423.77M | 75.37M | 65.57M |
| 3 | 17.29B | 6.3% | 4.7% | 530.73M | 425.16M | 105.57M | 85.65M |
| 4 | 18.31B | 5.9% | 4.7% | 562.16M | 423.21M | 138.96M | 105.15M |
| 5 | 19.32B | 5.5% | 4.7% | 593.19M | 417.71M | 175.48M | 123.85M |
| 6 | 20.31B | 5.1% | 4.7% | 623.53M | 408.51M | 215.01M | 141.53M |
| 7 | 21.27B | 4.7% | 4.7% | 652.90M | 395.51M | 257.39M | 158.02M |
| 8 | 22.18B | 4.3% | 4.7% | 681.03M | 378.65M | 302.38M | 173.14M |
| 9 | 23.05B | 3.9% | 4.7% | 707.61M | 357.94M | 349.67M | 186.75M |
| 10 | 23.86B | 3.5% | 4.7% | 732.38M | 333.45M | 398.94M | 198.71M |
⚠ Extreme gap to market price — large, heavily-covered stocks are rarely mispriced this much; the gap likely embeds disruption, decline, or balance-sheet risk the model underweights. Treat as a flag to investigate, not a verdict.