Acuity Brands Inc (AYI) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Acuity Brands Inc stock $333, price $323, upside +3.1%, quality 77 out of 100. Rating: fairly valued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 4, 2026.
How to read this chart
60‑month range $144.83 – $376.66 · fair‑value band $237.22 – $449.54 · the $323.31 price screens below the $333.22 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 4, 2026.
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Acuity Inc. provides lighting, lighting controls, building management system, and an audio, video, and control platform in the United States and internationally.
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It operates in two segments, Acuity Brands Lighting (ABL); and the Acuity Intelligent Spaces (AIS). The ABL segment provides lighting solutions and luminaires with advanced electronics under the Aculux, American Electric Lighting, Cyclone, Dark to Light, eldoLED, Eureka, Fresco, Gotham, Healthcare Lighting, Holophane, Hydrel, IOTA, Juno, Lithonia Lighting, Luminaire LED, Luminis, Mark Architectural Lighting, Nightingale, nLight, Peerless, RELOC Wiring Solutions, and SensorSwitch brand names.
This segment serves electrical distributors, consumer retailers, large corporate accounts, and original equipment manufacturer customers.
The AIS segment offers Distech Controls intelligent Building Management Systems (BMS), such as products for controlling heating, ventilation, air conditioning, lighting, shades, refrigeration, and building access that prioritize end-user outcomes; Q-SYS, a full-stack audio, video, and control platform, and QSC Audio, an audio technology for live entertainers and sound reinforcement professionals.
This segment serves retail stores, airports, universities, enterprise campuses, sports venues, themed entertainment, and hospitality sectors through system integrators. It offers its products and solutions under the Atrius, Distech Controls, QSC, and KE2 Therm Solutions brands.
Acuity Inc. was formerly known as Acuity Brands, Inc. and changed its name to Acuity Inc. in March 2025. Acuity Inc. was incorporated in 2001 and is headquartered in Atlanta, Georgia.
Stock analysis
Acuity Brands Inc (AYI) currently trades at $323.31, while our model-based Fair Value estimate is $333.22, so the stock looks roughly fairly valued today (gap 3.0%).
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Valuation
Bull case: the DCF Models group reads highest at a median of $341.25 per share, and 10 of the 26 models we run sit above the $323.31 price.
Bear case: the Earnings-Based group reads lowest at $94.78, and 16 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $237.22 (bear) to $449.54 (bull), the price of $323.31 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 77/100 (high quality), in the Industrials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Acuity Brands Inc reported revenue of $4.6B in FY2026 versus $4.0B in FY2022, a compound +3.8%/yr. Reported net income was $531M in FY2026, compounding +8.5%/yr from FY2022.
Key figures
Market cap $10.0B Large · P/E ratio 18.6 · P/S ratio 2.16 · EPS (TTM) $17.36 · Dividend yield 0.2% · Net margin 11.5% · Return on equity 18.7% · Return on assets (EBIT) 14.1%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 65 out of 100 (low confidence).
What moves the price
The share trades about 14% below its 52-week high and 26% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −35% fair-value upside, at 3%, AYI screens cheaper than that median.
Fair Value models
Bear$237.22Fair Value $333.22Bull$449.54
Price $323.31 · Upside +3.1%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 2 months old). Earnings retained since then ($3.05 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
SaleKaren J HolcomSVP & Chief Financial Officer3× since Jan 28, 2026: 9,050 shares, avg. $312.34$2.8MSep 1, 202610b5-1 plan
BuyMaya LeibmanDirector200 shares at $288.83$57,766Apr 30, 2026
Plus 8 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.81/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+6.8%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.5%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+6.0%
Start year 2021 (pandemic). Over 10 years: +3.5% a year
Revenue growth 26 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+3.2%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+15.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year+15.4%
Dividend (yield on the price)0.2%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.15.4% vs 10.0%, picking up
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.12% → 16%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes about as much growth as the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+4.4%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+4.3%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +2.0% a year for the price and +1.9% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (93 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: The business draws strength from margin expansion via the higher-margin Intelligent Spaces segment and reliable cash generation, yet remains exposed to softening core lighting demand and emerging cost pressures.
Main risk: Lower-cost Asian manufacturers could undercut prices on standard LED fixtures and components, squeezing margins and volumes in the core lighting segment that still generates most revenue.
Bull case: Acuity could accelerate its mix shift to intelligent spaces through further acquisitions and edge-AI integration, using its lighting installed base to win recurring controls and software revenue that offsets any lighting commoditisation.
Bear case: If Asian price pressure persists in lighting while larger automation rivals dominate controls, the transition to higher-margin intelligent spaces could stall, leaving the company exposed to cyclical construction weakness and eroding overall profitability.
Acuity’s Intelligent Spaces segment grew 17 percent in the latest quarter, helping margins expand even as overall revenue missed estimates and lighting sales softened. The higher-margin mix shift is now a bigger driver of results, supported by solid cash generation, but memory costs loom as a potential drag. Will this transition deliver lasting profit growth that outpaces any further lighting weakness, or will cost pressures and softer demand in core markets limit the gains?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Electrical Equipment & Parts · 560 stocks
Beats the industry median on 9/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score77 · Top 25%
Fair Value upside+3.1% · Above median
Profitability
Return on equity (12 months)18.7% · Top 25%
Return on assets10.9% · Top 25%
Net margin (12 months)11.5% · Top 25%
Operating margin (12 months)16.1% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)2.9% · Below median
Dividend yield (12 months)0.2% · Bottom 25%
Balance sheet
Debt / equity0.30× · Highest 25%
Valuation Multiplesvs Electrical Equipment & Parts median · lower = cheaper
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Is Acuity Brands Inc (AYI) overvalued or undervalued?
As of Nov 4, 2026, our model estimates a fair value of $333.22 versus a price of $323.31, about +3% upside (fairly valued).
What is the fair value of AYI?
Our model-based fair value for Acuity Brands Inc is $333.22 (as of Nov 4, 2026), built from audited fundamentals. The current price: $323.31.
What is the quality score of AYI?
Acuity Brands Inc has a Quality Score of 77/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Acuity Brands Inc (AYI)?
Our model-based price target is the fair value of $333.22 (as of Nov 4, 2026) from 26 valuation models. Cautious scenario $237.22, optimistic scenario $449.54. It is a calculation from audited fundamentals, not an analyst target.
What is the Acuity Brands Inc stock forecast for 2026?
Our models put fair value at $333.22, about +3% upside versus a price of $323.31 (fairly valued). Cautious scenario $237.22, optimistic scenario $449.54. The calculation is refreshed regularly with new filings.
What is the revenue of Acuity Brands Inc (AYI)?
Acuity Brands Inc reported trailing-twelve-month revenue of about $4.6B (latest available figure, as of Nov 4, 2026).
Does Acuity Brands Inc pay a dividend?
Acuity Brands Inc currently shows a dividend yield of 0.24% relative to its recent price (as of Nov 4, 2026).
What growth is priced into Acuity Brands Inc (AYI)?
For today's price to be fair in a discounted-cash-flow model, Acuity Brands Inc would have to grow free cash flow by +4.4 % per year for five years (discount rate 10.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +6.1 % per year. As of Nov 4, 2026.
What discount rate (WACC) does the fair value of AYI use?
Our models discount Acuity Brands Inc at 10.5 %: a base by market capitalisation (mid), damped by beta 1.30, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Acuity Brands Inc that is +4.4 % per year a year over ten years, using the same discount rate (10.5 %) and the same formula as our fair value.
How much growth has Acuity Brands Inc (AYI) delivered so far?
Over the past 5 years revenue at Acuity Brands Inc grew +6.1 % a year. The price currently implies +4.4 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Acuity Brands Inc (AYI) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Acuity Brands Inc (+4.4 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Acuity Brands Inc (AYI)?
The free-cash-flow yield on the price is 7.47 %: that much free cash flow Acuity Brands Inc produces per unit of market value. When it exceeds the discount rate of our models (10.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Acuity Brands Inc (AYI)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Acuity Brands Inc it is $333.22 per share (as of Nov 4, 2026), against a price of $323.31. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Acuity Brands Inc stock overvalued or undervalued in 2026?
As of Nov 4, 2026, AYI trades below its calculated fair value: price $323.31, fair value $333.22, a gap of about +3% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of AYI?
No. The price is what the market pays today ($323.31); the fair value is what the company's own numbers justify ($333.22). For Acuity Brands Inc the two are $9.91 per share apart. That gap is exactly why we show both numbers side by side.
How much is Acuity Brands Inc worth?
The market values Acuity Brands Inc at about $10.0B (market capitalisation, as of Nov 4, 2026). Per share that is $323.31; our models calculate a fair value of $333.22 per share.
What do the bullish and bearish scenarios say about AYI?
Our models span a range for Acuity Brands Inc: cautious scenario $237.22, base $333.22, optimistic $449.54 per share (as of Nov 4, 2026, price $323.31). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of AYI?
Acuity Brands Inc trades at a price-to-earnings ratio of 18.6 (as of Nov 4, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $333.22 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings, 7 of the years ex one-offs: 17.9. Other multiples: PEG 1.2, P/B 3.4, P/S 2.2, EV/EBITDA 12.2.
What is the PEG ratio of AYI?
The PEG ratio of Acuity Brands Inc is 1.21 (P/E divided by earnings growth, as of Nov 4, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Acuity Brands Inc (AYI)?
Balance-sheet figures for Acuity Brands Inc (as of Nov 4, 2026): return on equity 18.7%, debt of 0.30 per unit of equity. They feed the Quality Score of 77/100, which measures business quality independently of the share price.
How far is AYI from its 52-week high?
Acuity Brands Inc trades at $323.31, about 14% below its 52-week high of $376.66 and 26% above the low of $257.61 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $333.22 is for.
Which stocks are comparable to Acuity Brands Inc?
From the same area (Industrials) we also value Contemporary Amperex Technology Co, ABB Ltd, Vertiv Holdings, Delta Electronics (Thailand) Public Company, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Acuity Brands Inc stock attractive at the current price?
The data as of Nov 4, 2026: price $323.31, calculated fair value $333.22 (+3%), Quality Score 77/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of AYI calculated?
We run Acuity Brands Inc through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $333.22, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Acuity Brands Inc currently trades 3% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Acuity Brands Inc (AYI)?
The closing price on Nov 5, 2026 was $323.31. Our model-based fair value is $333.22, about +3% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Acuity Brands Inc right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. A fairly wide model range ($237.22 to $449.54) leaves room in how you read the outcome.
Where does the earnings growth of Acuity Brands Inc (AYI) come from?
Earnings per share at Acuity Brands Inc grew +9.4 % a year from 2015 to 2026. Broken into its drivers: revenue per share +7.2 %, EBIT margin +0.1 %, tax rate +2.0 %, residual (interest, one-offs) −0.1 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Acuity Brands Inc
How large is the market capitalisation of Acuity Brands Inc (AYI)?
The market capitalisation of Acuity Brands Inc is $10.0B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Acuity Brands Inc (AYI)?
The price-to-sales ratio of Acuity Brands Inc is 2.16 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Acuity Brands Inc (AYI)?
Earnings per share at Acuity Brands Inc are $17.36 (price ÷ EPS = P/E 18.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Acuity Brands Inc (AYI)?
The dividend yield of Acuity Brands Inc is 0.2% (payout 4.4%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Acuity Brands Inc (AYI)?
The net margin of Acuity Brands Inc is 11.5% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Acuity Brands Inc (AYI)?
The return on equity (ROE) of Acuity Brands Inc is 18.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Acuity Brands Inc (AYI)?
On an EBIT basis the return on assets of Acuity Brands Inc is 14.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Acuity Brands Inc (AYI)?
The operating margin of Acuity Brands Inc is 16.1% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Acuity Brands Inc (AYI)?
Revenue at Acuity Brands Inc is growing +2.9% versus a year earlier (3y avg +5.5%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Acuity Brands Inc (AYI)?
Earnings per share at Acuity Brands Inc are growing +55.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Acuity Brands Inc (AYI) carry?
The net debt of Acuity Brands Inc is $61.1M (fiscal year 2026, ≈ 0.1 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 4, 2026