As of April 1, 2026, ACS Actividades de Construccion y Servicios SA's estimated intrinsic value ranges from $43.43 to $144.49 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $92.53 | -11.7% |
| Discounted Cash Flow (5Y) | $80.12 | -23.5% |
| Dividend Discount Model (Multi-Stage) | $43.43 | -58.6% |
| Dividend Discount Model (Stable) | $43.73 | -58.3% |
| Earnings Power Value | $144.49 | +37.9% |
Is ACS Actividades de Construccion y Servicios SA (ACS.MC) undervalued or overvalued?
With the current market price at $104.80, the stock appears to be significantly overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate ACS Actividades de Construccion y Servicios SA's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.9 | 1.11 |
| Cost of equity | 9.8% | 13.5% |
| Cost of debt | 4.0% | 6.1% |
| Tax rate | 19.0% | 22.9% |
| Debt/Equity ratio | 0.55 | 0.55 |
| After-tax WACC | 7.4% | 10.3% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $80 | $25,119M | 71.8% |
| 10-Year Growth | $93 | $28,490M | 54.1% |
| 5-Year EBITDA | $58 | $19,074M | 62.8% |
| 10-Year EBITDA | $74 | $23,450M | 44.2% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $3,686M |
| Discount Rate (WACC) | 10.3% - 7.4% |
| Enterprise Value | $35,720M - $49,489M |
| Net Debt | $3,352M |
| Equity Value | $32,368M - $46,136M |
| Outstanding Shares | 272M |
| Fair Value | $119 - $170 |
| Selected Fair Value | $144.49 |
| Metric | Value |
|---|---|
| Market Capitalization | $28470M |
| Enterprise Value | $31822M |
| Trailing P/E | 22.63 |
| Forward P/E | 19.72 |
| Trailing EV/EBITDA | 5.85 |
| Current Dividend Yield | 151.03% |
| Dividend Growth Rate (5Y) | 1.51% |
| Debt-to-Equity Ratio | 0.55 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $27.76 |
| Discounted Cash Flow (5Y) | 25% | $20.03 |
| Dividend Discount Model (Multi-Stage) | 20% | $8.69 |
| Dividend Discount Model (Stable) | 15% | $6.56 |
| Earnings Power Value | 10% | $14.45 |
| Weighted Average | 100% | $77.49 |
Based on our comprehensive valuation analysis, ACS Actividades de Construccion y Servicios SA's intrinsic value is $77.49, which is approximately 26.1% below the current market price of $104.80.
Key investment considerations:
Given these factors, we believe ACS Actividades de Construccion y Servicios SA is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.