Federal Signal Corporation (FSS) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Federal Signal Corporation stock $60.72, price $113, that is 46.5% below the price, quality 62 out of 100. Rating: strongly overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range $31.22 – $133.86 · fair‑value band $36.38 – $89.90 · the $113.44 price screens above the $60.72 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. As of Nov 6, 2026.
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Federal Signal Corporation designs, manufactures, and supplies a suite of products and integrated solutions for municipal, governmental, industrial, and commercial customers in the United States, Canada, Europe, and internationally.
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It operates through two segments, Environmental Solutions Group, and Safety and Security Systems Group.
The company offers street sweepers, sewer cleaners, industrial vacuum loaders, safe-digging trucks, dump truck bodies, and trailers, as well as waterblasting, road-marking, line-removal, metal extraction support equipment, and multi-purpose maintenance vehicles under the ELGIN, VACTOR, GUZZLER, TRUVAC, WESTECH, JETSTREAM, BLASTERS, MARK RITE LINES, HOG, NEW WAY, TRACKLESS, OX BODIES, CRYSTEEL, J-CRAFT, DURACLASS, RUGBY, TRAVIS, OSW, NTE, WTB, GROUND FORCE, TOWHAUL, BUCKS, AND SWITCH-N-GO brands; and provides refuse and recycling collection vehicles through a dealer network or direct sales to service customers.
It is also involved in sale of parts, service and repair, equipment rentals, and training.
The company also provides systems for community alerting, emergency vehicles, first responder interoperable communications, and industrial communications; public safety equipment, such as vehicle lightbars and sirens, industrial signaling equipment, public warning systems, and general alarm/public address systems under the Federal Signal, Federal Signal VAMA, and Victor brand names through wholesalers, distributors, independent manufacturer representatives, original equipment manufacturers, and direct sales force, as well as independent foreign distributors.
Federal Signal Corporation was founded in 1901 and is based in Downers Grove, Illinois.
Stock analysis
Federal Signal Corporation (FSS) currently trades at $113.44, while our model-based Fair Value estimate is $60.72, 46% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $76.57 per share, and 0 of the 26 models we run sit above the $113.44 price.
Bear case: the Dividend Discount group reads lowest at $7.86, and 26 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $36.38 (bear) to $89.90 (bull), the price of $113.44 sits above 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 62/100 (solid quality), in the Industrials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Federal Signal Corporation reported revenue of $2.2B in FY2025 versus $1.2B in FY2021, a compound +15.8%/yr. Reported net income was $247M in FY2025, compounding +25.1%/yr from FY2021.
Key figures
Market cap $7.0B Mid · P/E ratio 25.0 · P/S ratio 2.74 · EPS (TTM) $4.54 · Dividend yield 0.5% · Net margin 11.7% · Return on equity 20.5% · Return on assets (EBIT) 13.0% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 66 out of 100 (medium confidence).
What moves the price
The share trades about 15% below its 52-week high and 8% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at 10% fair-value upside, at −46%, FSS screens richer than that median.
Fair Value models
Bear$36.38Fair Value $60.72Bull$89.90
Price $113.44 · Downside -46.5%
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 2025 figures (about 10 months old). Earnings retained since then ($3.38 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.
BuyRichard A MaueDirector2,000 shares at $110.77$221,540Mar 10, 2026
Plus 6 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.100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+17.1%
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.
+15.0%
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.
+14.0%
Start year 2020 (pandemic). Over 10 years: +11.0% a year
Revenue growth 40 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.
+5.3%
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What shareholders gained per year (last 5 years) (mathematically smoothed) ⓘ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. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip.
+25.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year+25.2%
Dividend (yield on the price)0.5%
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.19.8% vs 14.9%, picking up
Profit margin 2020 to 2025 ⓘ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%
2025 sits 57% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than 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).
+20.5%
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.
+8.3%
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 +17.7% a year for the price and +5.8% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (94 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: Ongoing launches of specialized safety devices provide the main strength while thin public data and reliance on large municipal projects form the key weakness.
Main risk: Upcoming EPA 2027 chassis standards might prolong customer uncertainty and postpone purchases of refuse trucks and other chassis-based environmental equipment.
Bull case: The company could integrate new compliant chassis quickly and expand its aftermarket services to offset any temporary slowdown in new vehicle sales.
Bear case: Prolonged regulatory uncertainty might reduce demand for its environmental solutions segment and pressure margins on larger municipal orders.
Federal Signal keeps launching new specialized sirens, lights and signaling devices for emergency vehicles and hazardous industrial sites. These steady refreshes bolster the safety segment while environmental equipment sales still hinge on larger municipal and construction projects. Our models currently see the shares as overvalued. Will the flow of targeted safety products deliver steadier growth than the bigger-ticket environmental orders?
Compare Federal Signal Corporation with another stock
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.Farm & Heavy Construction Machinery · 145 stocks
Beats the industry median on 6/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score62 · Above median
Fair Value upside−46.5% · Bottom 25%
Profitability
Return on equity (12 months)20.5% · Top 25%
Return on assets10.3% · Top 25%
Net margin (12 months)11.7% · Top 25%
Operating margin (12 months)17.2% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)18.1% · Above median
Dividend yield (12 months)0.5% · Bottom 25%
Balance sheet
Debt / equity0.41× · Highest 25%
Valuation Multiplesvs Farm & Heavy Construction Machinery median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Federal Signal Corporation Fair Value". https://www.fairvalue-calculator.com/stock/FSS
Frequently asked questions
Is Federal Signal Corporation (FSS) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of $60.72 versus a price of $113.44, about 46% lower (overvalued).
What is the fair value of FSS?
Our model-based fair value for Federal Signal Corporation is $60.72 (as of Nov 6, 2026), built from audited fundamentals. The current price: $113.44.
What is the quality score of FSS?
Federal Signal Corporation has a Quality Score of 62/100. 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 Federal Signal Corporation (FSS)?
Our model-based price target is the fair value of $60.72 (as of Nov 6, 2026) from 26 valuation models. Cautious scenario $36.38, optimistic scenario $89.90. It is a calculation from audited fundamentals, not an analyst target.
What is the Federal Signal Corporation stock forecast for 2026?
Our models put fair value at $60.72, about 46% lower versus a price of $113.44 (overvalued). Cautious scenario $36.38, optimistic scenario $89.90. The calculation is refreshed regularly with new filings.
What is the revenue of Federal Signal Corporation (FSS)?
Federal Signal Corporation reported trailing-twelve-month revenue of about $2.5B (latest available figure, as of Nov 6, 2026).
Does Federal Signal Corporation pay a dividend?
Federal Signal Corporation currently shows a dividend yield of 0.52% relative to its recent price (as of Nov 6, 2026).
How much is the dividend of Federal Signal Corporation (FSS) and when is the ex-dividend date?
Federal Signal Corporation pays a dividend of $0.59 per share a year, a dividend yield of 0.5%. The next ex-dividend date is Nov 13, 2026. A dividend has been paid every year since 2014. The payout ratio is 13.0% of earnings. Free cash flow covers the dividend 6.31 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Federal Signal Corporation (FSS)?
For today's price to be fair in a discounted-cash-flow model, Federal Signal Corporation would have to grow free cash flow by +20.5 % per year for five years (discount rate 10.3 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +14.0 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of FSS use?
Our models discount Federal Signal Corporation at 10.3 %: a base by market capitalisation (mid), damped by beta 1.23, 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 Federal Signal Corporation that is +20.5 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (10.3 %) and the same formula as our fair value.
How much growth has Federal Signal Corporation (FSS) delivered so far?
Over the past 5 years revenue at Federal Signal Corporation grew +14.0 % a year. The price currently implies free-cash-flow growth of +20.5 % per 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 Federal Signal Corporation (FSS) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Federal Signal Corporation (+20.5 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Federal Signal Corporation (FSS)?
The free-cash-flow yield on the price is 3.26 %: that much free cash flow Federal Signal Corporation produces per unit of market value. When it exceeds the discount rate of our models (10.3 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Federal Signal Corporation (FSS)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Federal Signal Corporation it is $60.72 per share (as of Nov 6, 2026), against a price of $113.44. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Federal Signal Corporation stock overvalued or undervalued in 2026?
As of Nov 6, 2026, FSS trades above its calculated fair value: price $113.44, fair value $60.72, a gap of about −46% (overvalued). 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 FSS?
No. The price is what the market pays today ($113.44); the fair value is what the company's own numbers justify ($60.72). For Federal Signal Corporation the two are $52.72 per share apart. That gap is exactly why we show both numbers side by side.
How much is Federal Signal Corporation worth?
The market values Federal Signal Corporation at about $7.0B (market capitalisation, as of Nov 6, 2026). Per share that is $113.44; our models calculate a fair value of $60.72 per share.
What do the bullish and bearish scenarios say about FSS?
Our models span a range for Federal Signal Corporation: cautious scenario $36.38, base $60.72, optimistic $89.90 per share (as of Nov 6, 2026, price $113.44). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of FSS?
Federal Signal Corporation trades at a price-to-earnings ratio of 25.0 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $60.72 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, FY2016, FY2023 ex one-offs: 23.6. Other multiples: PEG 1.4, P/B 5.1, P/S 2.7, EV/EBITDA 14.3.
What is the PEG ratio of FSS?
The PEG ratio of Federal Signal Corporation is 1.41 (P/E divided by earnings growth, as of Nov 6, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Federal Signal Corporation (FSS)?
Balance-sheet figures for Federal Signal Corporation (as of Nov 6, 2026): return on equity 20.5%, debt of 0.41 per unit of equity. They feed the Quality Score of 62/100, which measures business quality independently of the share price.
How far is FSS from its 52-week high?
Federal Signal Corporation trades at $113.44, about 15% below its 52-week high of $133.86 and 8% above the low of $104.63 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $60.72 is for.
Which stocks are comparable to Federal Signal Corporation?
From the same area (Industrials) we also value Caterpillar Inc, Deere & Company, PACCAR Inc, Daimler Truck Holding, 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 Federal Signal Corporation stock attractive at the current price?
The data as of Nov 6, 2026: price $113.44, calculated fair value $60.72 (−46%), Quality Score 62/100, 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 FSS calculated?
We run Federal Signal Corporation through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $60.72 builds on their evidence-weighted average, 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 13.0% above its aggregate fair value. Federal Signal Corporation itself currently trades above fair value. 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 Federal Signal Corporation (FSS)?
The closing price on Nov 6, 2026 was $113.44. Our model-based fair value is $60.72, about 46% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Federal Signal Corporation right now?
The price sits above even our optimistic bull case ($89.90). The favourable scenario is already priced in. Solid but not exceptional quality (62/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($36.38 to $89.90) leaves room in how you read the outcome.
Where does the earnings growth of Federal Signal Corporation (FSS) come from?
Earnings per share at Federal Signal Corporation grew +15.6 % a year from 2014 to 2025. Broken into its drivers: revenue per share +10.5 %, EBIT margin +4.0 %, tax rate +1.4 %, residual (interest, one-offs) −0.7 %. 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 Federal Signal Corporation
How large is the market capitalisation of Federal Signal Corporation (FSS)?
The market capitalisation of Federal Signal Corporation is $7.0B. 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 Federal Signal Corporation (FSS)?
The price-to-sales ratio of Federal Signal Corporation is 2.74 (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 Federal Signal Corporation (FSS)?
Earnings per share at Federal Signal Corporation are $4.54 (price ÷ EPS = P/E 25.0). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Federal Signal Corporation (FSS)?
The dividend yield of Federal Signal Corporation is 0.5% (payout 13.0%). 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 Federal Signal Corporation (FSS)?
The net margin of Federal Signal Corporation is 11.7% (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 Federal Signal Corporation (FSS)?
The return on equity (ROE) of Federal Signal Corporation is 20.5% (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 Federal Signal Corporation (FSS)?
On an EBIT basis the return on assets of Federal Signal Corporation is 13.0% (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 Federal Signal Corporation (FSS)?
The operating margin of Federal Signal Corporation is 17.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Federal Signal Corporation (FSS)?
Revenue at Federal Signal Corporation is growing +18.1% versus a year earlier (3y avg +15.0%). 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 Federal Signal Corporation (FSS)?
Earnings per share at Federal Signal Corporation are growing +16.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Federal Signal Corporation (FSS) carry?
The net debt of Federal Signal Corporation is $531M (fiscal year 2025, ≈ 2.3 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 6, 2026