EME
EMCOR Group, Inc. (EME)
Last Price$395.7(3.2%)
Market Cap$18.7B
DCF value
$259.2
Overvalued (DCF value)
(34.5%)
Discount Rate
8.7%
Long-Term Growth Rate
2.0%
Stock quality
7/10
Great

EME DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Dec'19 ActualDec'20 ActualDec'21 ActualDec'22 ActualDec'23 ActualDec'24 EstimateDec'25 EstimateDec'26 EstimateDec'27 EstimateDec'28 EstimateDec'29 EstimateDec'30 EstimateDec'31 EstimateDec'32 EstimateDec'33 EstimateDec'34 Terminal
% growth
9,174.6
12.8%
8,797.1
(4.1%)
9,903.6
12.6%
11,076.1
11.8%
12,582.9
13.6%
14,602.9
16.1%
15,664.4
7.3%
16,610.0
6.0%
17,528.9
5.5%
18,410.2
5.0%
19,242.8
4.5%
20,016.1
4.0%
20,719.4
3.5%
21,342.8
3.0%
21,877.4
2.5%
22,314.9
2.0%
460.9
5.0%
494.8
5.6%
530.8
5.4%
564.9
5.1%
875.8
7.0%
827.4
5.7%
887.6
5.7%
941.2
5.7%
993.2
5.7%
1,043.2
5.7%
1,090.4
5.7%
1,134.2
5.7%
1,174.0
5.7%
1,209.4
5.7%
1,239.6
5.7%
1,264.4
5.7%
NOPAT
% effective tax rate
332.4
3.6%
260.7
3.0%
384.8
3.9%
410.6
3.7%
635.4
5.1%
600.4
4.1%
644.0
4.1%
682.9
4.1%
720.7
4.1%
756.9
4.1%
791.1
4.1%
822.9
4.1%
851.9
4.1%
877.5
4.1%
899.5
4.1%
917.5
4.1%
% of revenue
92.1
1.0%
106.7
1.2%
112.4
1.1%
108.6
1.0%
119.0
0.9%
149.0
1.0%
159.8
1.0%
169.5
1.0%
178.9
1.0%
187.9
1.0%
196.4
1.0%
204.3
1.0%
211.4
1.0%
217.8
1.0%
223.2
1.0%
227.7
1.0%
% of revenue
(48.4)
(0.5%)
(48.0)
(0.5%)
(36.2)
(0.4%)
(49.3)
(0.4%)
(78.4)
(0.6%)
(69.8)
(0.5%)
(74.9)
(0.5%)
(79.4)
(0.5%)
(83.8)
(0.5%)
(88.0)
(0.5%)
(92.0)
(0.5%)
(95.6)
(0.5%)
(99.0)
(0.5%)
(102.0)
(0.5%)
(104.5)
(0.5%)
(106.6)
(0.5%)
(78.9)
(0.9%)
354.6
4.0%
(208.4)
(2.1%)
(39.1)
(0.4%)
141.9
1.1%
(64.7)
(0.4%)
(69.4)
(0.4%)
(73.6)
(0.4%)
(77.7)
(0.4%)
(81.6)
(0.4%)
(85.3)
(0.4%)
(88.7)
(0.4%)
(91.8)
(0.4%)
(94.6)
(0.4%)
(97.0)
(0.4%)
(98.9)
(0.4%)
Free Cash Flow to Firm (FCFF)
% of revenue
297.1
3.2%
674.0
7.7%
252.7
2.6%
430.8
3.9%
817.8
6.5%
614.9
4.2%
659.6
4.2%
699.4
4.2%
738.1
4.2%
775.2
4.2%
810.3
4.2%
842.8
4.2%
872.5
4.2%
898.7
4.2%
921.2
4.2%
939.6
4.2%
% of FCFF used in calculation
100.0%
83.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
Discount factor
0.96
0.88
0.81
0.75
0.69
0.63
0.58
0.54
0.49
Discounted FCFF (DFCFF)
525.2
617.3
599.4
579.3
557.1
533.2
507.8
481.3
454.0

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EME DCF Value

DCF Value Calculation

as of Mar 03, 2025
Sum of DFCFF
% share of EV
4,854.7M
41.2%
Terminal Value (TV)
14.1B
Discounted TV
% share of EV
6,930.8M
58.8%
Total Debt
337.5M
Shares outstanding
47.2M
FX rate
1.0
34.5% overvalued

Equity Value Bridge

EME DCF Financials

Revenue
$12.6B -> $21.9B 5.7% CAGR
Operating Income
$875.8M -> $1,239.6M 3.5% CAGR
FCFF
$817.8M -> $921.2M 1.2% CAGR

EME DCF sensitivity

DCF value
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
8.0%
$263.0
$274.0
$288.0
$303.0
$322.0
8.5%
$246.0
$255.0
$266.0
$279.0
$294.0
8.7%
$240.0
$249.0
$259.0
$271.0
$285.0
9.5%
$217.0
$224.0
$232.0
$241.0
$251.0
10.0%
$206.0
$211.0
$218.0
$225.0
$234.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
8.0%
(34.0%)
(31.0%)
(27.0%)
(23.0%)
(19.0%)
8.5%
(38.0%)
(36.0%)
(33.0%)
(29.0%)
(26.0%)
8.7%
(39.0%)
(37.0%)
(35.0%)
(32.0%)
(28.0%)
9.5%
(45.0%)
(43.0%)
(41.0%)
(39.0%)
(37.0%)
10.0%
(48.0%)
(47.0%)
(45.0%)
(43.0%)
(41.0%)

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FAQ

What is EMCOR Group, Inc. DCF (discounted cash flow) valuation?

As of Mar 03, 2025, EMCOR Group, Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at $259.2. This suggests it may be overvalued by (34.5%) compared to its current price of around $395.7, using a WACC of 8.7% and growth rates of 2.0%.

What is EMCOR Group, Inc. WACC?

As of Mar 03, 2025, EMCOR Group, Inc.'s Weighted Average Cost of Capital (WACC) is approximately 8.7%.

What is EMCOR Group, Inc. Enterprise Value?

As of Mar 03, 2025, EMCOR Group, Inc.'s Enterprise Value (EV) is approximately $11.8B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.