As of October 10, 2025, ACS Actividades de Construccion y Servicios SA's estimated intrinsic value ranges from $29.84 to $114.44 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $56.21 | -21.1% |
| Discounted Cash Flow (5Y) | $45.01 | -36.8% |
| Dividend Discount Model (Multi-Stage) | $29.84 | -58.1% |
| Dividend Discount Model (Stable) | $44.10 | -38.1% |
| Earnings Power Value | $114.44 | +60.7% |
Is ACS Actividades de Construccion y Servicios SA (ACS.MC) undervalued or overvalued?
With the current market price at $71.20, 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 | 1.02 |
| Cost of equity | 9.8% | 12.7% |
| Cost of debt | 5.3% | 6.2% |
| Tax rate | 19.0% | 23.3% |
| Debt/Equity ratio | 0.76 | 0.76 |
| After-tax WACC | 7.4% | 9.3% |
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 | $45 | $16,864M | 77.0% |
| 10-Year Growth | $56 | $19,908M | 59.4% |
| 5-Year EBITDA | $34 | $13,880M | 72.0% |
| 10-Year EBITDA | $46 | $17,115M | 52.7% |
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 | $2,946M |
| Discount Rate (WACC) | 9.3% - 7.4% |
| Enterprise Value | $31,674M - $39,781M |
| Net Debt | $4,638M |
| Equity Value | $27,037M - $35,144M |
| Outstanding Shares | 272M |
| Fair Value | $100 - $129 |
| Selected Fair Value | $114.44 |
| Metric | Value |
|---|---|
| Market Capitalization | $19342M |
| Enterprise Value | $23980M |
| Trailing P/E | 15.57 |
| Forward P/E | 22.10 |
| Trailing EV/EBITDA | 6.05 |
| Current Dividend Yield | 223.65% |
| Dividend Growth Rate (5Y) | -6.91% |
| Debt-to-Equity Ratio | 0.76 |
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% | $16.86 |
| Discounted Cash Flow (5Y) | 25% | $11.25 |
| Dividend Discount Model (Multi-Stage) | 20% | $5.97 |
| Dividend Discount Model (Stable) | 15% | $6.61 |
| Earnings Power Value | 10% | $11.44 |
| Weighted Average | 100% | $52.14 |
Based on our comprehensive valuation analysis, ACS Actividades de Construccion y Servicios SA's intrinsic value is $52.14, which is approximately 26.8% below the current market price of $71.20.
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.