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    Acuity Brands (AYI): Assessing Valuation After Recent Share Price Gains and QSC Acquisition

    Simply Wall St·12/19/2025 19:25:14
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    Acuity (AYI) has quietly kept climbing, with the stock up about 7% over the past 3 months and roughly 21% this year, as investors reward steady revenue and earnings growth.

    See our latest analysis for Acuity.

    With the latest share price at $359.83, Acuity’s roughly 3% 1 month share price return and strong three year total shareholder return of about 118% suggest momentum is still very much on the side of patient holders.

    If Acuity’s steady climb has your attention, it could be a good moment to see what else is working in the market and explore fast growing stocks with high insider ownership.

    Yet despite solid revenue and earnings growth, Acuity trades just below analyst targets and close to estimates of intrinsic value. This raises the question: is this a fresh buying window, or is future growth already fully priced in?

    Most Popular Narrative: 9.9% Undervalued

    Compared with the last close of $359.83, the most popular narrative points to a higher fair value near $399.25, framing a modest upside path.

    The recent acquisition of QSC, which enhances Acuity's capabilities in built space management and cloud connectivity, is expected to contribute to future sales growth and margin expansion in the Acuity Intelligence Spaces segment.

    Read the complete narrative.

    Want to see why this growth engine could justify a richer valuation multiple than many industrial peers? The narrative leans on layered revenue expansion, higher margins, and a future earnings profile that resembles a high quality compounder rather than a cyclical lighting name.

    Result: Fair Value of $399.25 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, sustained tariff pressures and any stumble integrating QSC could quickly erode margin gains and challenge the case for a higher valuation.

    Find out about the key risks to this Acuity narrative.

    Another View: Rich on Earnings

    On earnings, Acuity looks less of a bargain. The current P E of about 27.6 times sits below the Electrical industry at roughly 31.2 times and peers near 34.5 times, but above a fair ratio closer to 25 times. This hints at limited margin for error if growth cools.

    See what the numbers say about this price — find out in our valuation breakdown.

    NYSE:AYI PE Ratio as at Dec 2025
    NYSE:AYI PE Ratio as at Dec 2025

    Build Your Own Acuity Narrative

    If you see the story differently or want to dig into the numbers yourself, you can build a custom thesis in minutes: Do it your way.

    A great starting point for your Acuity research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.