3 models fit Amentum Holdings Inc. Common Stock and they disagree: 1 of 3 land within 15% of the average.
Two or more of our models back this value.
Large discount(i)
Valued as a growth company: Discounted cash flow, P/E comparison, and EV/EBITDA comparison.
ACCE opinionAmentum Holdings Inc. Common Stock (AMTM)
Fair value (3 models)
$36.34
ACCE price target
$21.50
Rating
Undervalued
Horizon
12 months
Fair value published on 20 Oct 2026, 16:04 CEST; previously $36.82 since 16 Oct 2026, 00:00 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Rating published on 20 Oct 2026, 16:04 CEST.
Price used: $21.76 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, and EV/EBITDA comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
40.1% below
+67.0% to fair value
ACCE score
47
out of 100
Analysts
42% buy
12 covering
P/E
26.2x
forward 8.2x
1-year return
-6.0%
Dividend yield
0.00%
Amentum Holdings Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Amentum runs government engineering, technology and mission-support services, the kind of contracted work that keeps defence and civil agencies operating, and at a $4.7B market cap it sits in a niche where switching costs on multi-year awards are high. The structural case rests on that contract base, but the reported numbers are weak: revenue is shrinking 2.0%, gross margin is 10.5% and operating margin 4.4%, leaving a 4.3% ROE that does little for shareholders. The gap between a trailing P/E of 23.0 and a forward P/E of 7.5 signals that the market expects earnings to rise sharply, so the thesis depends on whether margin recovery and contract wins show up in the next few reporting periods. Its score of 45/100 and absence from any index suggest the quantitative screens do not yet support the story, which makes this worth a deeper look only if the forward earnings estimates can be checked against backlog and margin trends.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Revenue shrinking, earnings inflated
Revenue fell 2.0% year on year and 17.5% quarter on quarter, while earnings rose 575.0%. The earnings jump looks like a one-off rather than an operating recovery, and net margin is only 1.4%.
moderate
Thin margins, high leverage
Operating margin is 4.4% and debt to equity is 0.92. With margins this thin, a modest drop in revenue would hit profit quickly.
moderate
Elevated short interest
Short interest is 8.0% of the float. Combined with the revenue decline, this suggests some investors are betting on further weakness.
AI research notes
AI-assisted·How I use AIWritten Oct 22, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Free cash flow over the last twelve months reached $516M, and the forward P/E of 7.6x sits well below the sector median of 23.4x.
Analysts' mean price target is $29.33, which is 45.6% above the current share price.
Why it could disappoint
Revenue shrank 2.0% year over year, far from the 29.7% average annual growth over five years.
Net margin of 1.4% and return on invested capital of 0.6% show the business earns very little from each dollar of sales and capital.
The diluted share count rose 168.1% last fiscal year, so each shareholder's stake has been heavily diluted, and debt to equity stands at 0.92.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 23, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where AMTM's valuation models land
Price
$21.76
Model fair value
$36.34
Model range
$19.25 to $61.74
Fair value $36.34
Price $21.76
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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