Complete DY Stock Valuation Analysis
Comprehensive intrinsic value analysis using 6 different methodologies
DY DCF Analysis
DY (Dycom Industries, Inc.) discounted cash flow analysis with multiple scenarios, growth assumptions, and terminal value calculations
Financial Projections
| Metrics | 2023 (Historical) | 2024 (Historical) | 2025 (Historical) | 2026 (Projected) | 2027 (Projected) | 2028 (Projected) | 2029 (Projected) | 2030 (Projected) |
|---|---|---|---|---|---|---|---|---|
| Revenue | $3.8B | $4.2B | $4.7B | $5.3B | $5.8B | $6.4B | $7.0B | $7.5B |
| Revenue Growth % | - | 9.6% | 12.6% | 12.1% | 10.8% | 9.8% | 8.8% | 7.9% |
| EBIT | $220.7M | $486.1M | $340.5M | $433.4M | $486.3M | $540.2M | $594.6M | $649.1M |
| EBIT Margin % | 5.8% | 11.6% | 7.2% | 8.2% | 8.3% | 8.4% | 8.5% | 8.6% |
| Tax Rate % | 21.0% | 25.0% | 24.2% | 24.0% | 24.1% | 24.2% | 24.3% | 24.4% |
| NOPAT | $174.3M | $364.4M | $258.2M | $329.2M | $368.9M | $409.3M | $449.9M | $490.6M |
| NOPAT Margin % | 4.6% | 8.7% | 5.5% | 6.2% | 6.3% | 6.4% | 6.5% | 6.5% |
| Capex | $201.0M | $218.5M | $250.5M | $238.8M | $251.5M | $262.3M | $271.0M | $277.8M |
| Capex / Revenue % | 5.3% | 5.2% | 5.3% | 4.5% | 4.3% | 4.1% | 3.9% | 3.7% |
| Depreciation | $144.2M | $163.1M | $198.6M | $209.3M | $231.9M | $254.6M | $277.0M | $298.9M |
| D&A / Revenue % | 3.8% | 3.9% | 4.2% | 4.0% | 4.0% | 4.0% | 4.0% | 4.0% |
| Change in NWC | $48.8M | $20.6M | $63.7M | $118.5M | $105.1M | $92.3M | $80.3M | $69.3M |
| NWC Change / Revenue % | 1.3% | 0.5% | 1.4% | 2.2% | 1.8% | 1.4% | 1.2% | 0.9% |
| Unlevered FCF | $68.7M | $288.4M | $142.6M | $181.1M | $244.2M | $309.3M | $375.5M | $442.2M |
| UFCF % Chg. | - | 320.0% | -50.6% | 27.0% | 34.9% | 26.6% | 21.4% | 17.8% |
| FCF / Revenue % | 1.8% | 6.9% | 3.0% | 3.4% | 4.2% | 4.8% | 5.4% | 5.9% |
| Discount Factor | - | - | - | 0.914 | 0.835 | 0.763 | 0.697 | 0.637 |
| Present Value of FCF | - | - | - | $165.5M | $203.9M | $236.0M | $261.8M | $281.8M |
| Sum of PV of UFCF | - | - | - | $165.5M | $369.4M | $605.4M | $867.2M | $1.1B |
WACC Calculation
Weighted Average Cost of Capital used for discounting cash flows.
| WACC Calculation | Value |
|---|---|
| Cost of Debt | 6.3% |
| Tax Rate | 24.0% |
| After Tax Cost of Debt | 4.8% |
| Risk Free Rate | 4.35% |
| Market Risk Premium | 4.3% |
| Beta | 1.33 |
| Cost of Equity | 10.1% |
| Total Debt | $1.1B |
| Market Cap | $7.3B |
| Total Capital | $8.4B |
| Debt Weighting | 12.6% |
| Equity Weighting | 87.4% |
| WACC | 9.4% |
Terminal Value
Choose between perpetuity growth or exit multiple methods.
| Terminal Value Calculation | Value |
|---|---|
| Terminal Growth Rate | 2.5% |
| Final Year FCF | $442.2M |
| Terminal Value | $6.5B |
| PV of Terminal Value | $4.2B |
| Cumulative PV of UFCF | $1.1B |
| Net Debt | $963.3M |
| Equity Value | $4.4B |
| Shares Outstanding | 29.5M |
| Implied Share Price | $148 |
| Current Share Price | $253 |
| Implied Upside/(Downside) | -41.6% |
Valuation Summary
$147.56
Implied Price
$252.85
Current Price
-41.6%
Upside/Downside
9.4%
WACC
DY Peer Valuation Analysis
Relative valuation based on comparable company trading multiples
Peer Valuation Analysis
Fair Value Range Analysis
Based on median multiples from 11 peer companies in Industrials
P/E Ratio
$252.85
+0.0%
Peer Median: 31.9x
EV/EBITDA
$316.14
+25.0%
Peer Median: 16.5x
P/S Ratio
$302.63
+19.7%
Peer Median: 2.0x
Interpretation: Each multiple provides a different perspective on fair value. Consider which multiple is most relevant for DY's business model and current situation.
Multiple Comparison
| Multiple | DY Current | Peer Median | Peer Average | Premium/Discount | Assessment |
|---|---|---|---|---|---|
| P/E Ratio | 31.9x | 31.9x | 38.9x | 0.0% | Fair Value |
| EV/EBITDA | 15.0x | 16.5x | 18.6x | -9.5% | Fair Value |
| P/S Ratio | 1.6x | 2.0x | 1.9x | -16.4% | Fair Value |
Peer Companies
Click any company to view their valuation
| Company | Market Cap | P/E Ratio | EV/EBITDA | P/S Ratio |
|---|---|---|---|---|
| $19.07B | 32.3x | 20.6x | 2.6x | |
| $15.22B | 24.9x | 14.5x | 0.9x | |
| $14.36B | 40.1x | 21.6x | 2.0x | |
| $13.46B | 63.0x | 16.5x | 1.1x | |
| $8.60B | 5.0x | 11.3x | 0.5x | |
| $7.31B | 31.9x | 15.0x | 1.6x | |
| $6.76B | 19.6x | 12.1x | 1.7x | |
| $5.93B | 96.0x | 33.7x | 2.7x | |
| $7.35B | 28.1x | 15.9x | 3.5x | |
| $6.17B | 24.9x | 16.6x | 2.0x | |
| $56.87B | 62.2x | 27.1x | 2.3x |
DY Graham Number
Benjamin Graham's conservative valuation formula for defensive investors
Input Data
| EPS (TTM) | $7.92 | Latest 10-K |
| Book Value per Share | $42.03 | Latest 10-K Balance Sheet |
| Graham Constant | 22.5 | Benjamin Graham's formula |
Graham Number Result
$86.56
Intrinsic Value
$252.85
Current Price
-65.8%
Upside/Downside
Confidence: High
Conservative value investing approach
Calculation Breakdown
Formula:
√(22.5 × EPS × BVPS)
Step 1: Multiply constant by EPS
22.5 × 7.92 = 178.28
Step 2: Multiply by Book Value per Share
178.28 × 42.03 = 7492.86
Step 3: Take square root
√7492.86 = 86.56
Graham Number Result:
$86.56
DY Graham Intrinsic Value
Growth-adjusted intrinsic value with two formula variants
Formula Selection
V = EPS × (8.5 + 2g)
Graham's original P/E shortcut for growth, no interest-rate adjustment
V = [EPS × (8.5 + 2g) × 4.4] / Y
Graham's 1974 refinement: adds rate-environment sensitivity
Active Formula: Base-Growth
7.92 × (8.5 + 2 × 71.1%)
Input Data & Growth Assumptions
Current EPS (TTM)$7.92
Latest 10-K • 2025-01-25T00:00:00
Historical 3Y71.1%
Financial statements
Historical 5Y34.5%
Financial statements
Custom
%
Enter a positive growth rate estimate (0-50%)
Graham Intrinsic Value Result
$1194.69
Intrinsic Value
$252.85
Current Price
+372.5%
Upside/Downside
Base Formula
Growth: 71.1%
DY Peter Lynch Fair Value
Growth-based valuation using PEG ratio analysis for growth stocks
Fair Value Calculation
EPS (TTM)$7.92
Latest 10-K • 2025-01-25T00:00:00
Historical 3Y71.1%
3-year earnings growth
Historical 5Y34.5%
5-year earnings growth
71.1%
1%50%
Fair Value Formula: EPS × Growth Rate
$7.92 × 71.1% = $563.67
$563.67
Fair Value
$252.85
Current Price
+122.9%
Upside/Downside
PEG Analysis
31.9x
Current P/E
71.1%
Growth Rate
0.45
PEG Ratio (P/E ÷ Growth Rate)
Significantly Undervalued
PEG Ratio Interpretation:
• PEG < 1.0: Undervalued (growth exceeds P/E)
• PEG = 1.0: Fairly valued (ideal Lynch ratio)
• PEG > 1.5: Overvalued (paying premium for growth)
Peter Lynch's Rule:
"The P/E ratio of any company that's fairly priced will equal its growth rate." A stock with 15% growth should trade at a P/E of 15 (PEG = 1.0).
DY Earnings Power Value (EPV)
Normalized earnings-based valuation for sustainable earning power assessment
Earnings Normalization
| Earnings Component | Amount ($B) | Description |
|---|---|---|
| Reported Earnings | 0.2 | Base earnings from financial statements |
| Normalized Earnings | 0.2 | Final normalized earning power |
One-time Items: Remove non-recurring gains/losses
Cyclical Adjustment: Normalize for economic cycle position
EPV Result
$94.08
EPV per Share
$252.85
Current Price
-62.8%
Upside/Downside
8.4%
WACC: 8.4% (calculated from market data)
Confidence: High
Normalized earnings approach
EPV Calculation Breakdown
Enterprise Value Calculation
| Normalized Earnings | $0.2B |
| Cost of Capital | 8.4% |
| Enterprise Value | $2.8B |
Per Share Value
| Enterprise Value | $2.8B |
| Shares Outstanding | 0.0B |
| EPV per Share | $94.08 |
WACC Components
| Cost of Equity | 9.1% |
| After-Tax Cost of Debt | 3.5% |
| Equity Weight | 87.6% |
| Debt Weight | 12.4% |
| WACC | 8.4% |