Federal Signal Corporation logo FSS - Federal Signal Corporation

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 6
HOLD 5
SELL 0
STRONG
SELL
0
| PRICE TARGET: $140.00 DETAILS
HIGH: $140.00
LOW: $140.00
MEDIAN: $140.00
CONSENSUS: $140.00
UPSIDE: 20.67%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 50% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Overvalued Mild
Trading 11.9% above fair value
Current Price $116.02
Bear Case $64.81 44.1% downside ($64.81 - $116.02) / $116.02 = -44.1% 8% stage 1 growth, 11% discount
Fair Value $103.64 10.7% downside ($103.64 - $116.02) / $116.02 = -10.7% 14% stage 1 growth, 11% discount
Bull Case $145.89 25.7% upside ($145.89 - $116.02) / $116.02 = 25.7% 18% stage 1 growth, 11% discount

Adjust Assumptions

14.0%
11.0%
3.0%

Key Value Driver

FCF growth rate (14% base case)

Terminal Value % of EV 42%
Implied Market Multiple 35.2x
Market is pricing in (growth) 16.5% vs our 14.0% base

Plain-Language Summary

Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $140.00 from 11 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $103.64 per share.

Warnings

Wall Street's average price target is $140.00 (from 11 analysts). Our estimate is 32% below the consensus -- consider that gap carefully.

Key Risks

  • P/E alone misleads — earnings depressed by growth investment
  • Cyclical or commodity businesses may be misclassified as platforms
  • Terminal value dominance suggests sensitivity to long-run assumptions