FTI Consulting Inc. Common Stock (FCN) fair value

ACCE thesis

FTI Consulting sells litigation support, forensic accounting, restructuring advisory, strategic communications and technology consulting, mostly to law firms, corporate boards and lenders, with its Corporate Finance & Restructuring and Economic Consulting segments carrying much of the profit. The case rests on specialist, relationship-driven demand that tends to hold up in downturns, since restructuring and disputes work often rises when credit tightens. Revenue growth of 5.3% and a 15.6% return on equity sit at a sensible level for a business with a 9.2% operating margin, which leaves room for mix or utilization gains to lift earnings faster than sales. At 17.9 times trailing and 18.9 times forward earnings, the stock is not priced for a sharp reacceleration, though the forward multiple sitting above the trailing one means the market expects no earnings lift in the near term. The score of 48 out of 100 and absence from any major index argue for treating this as a name to examine further, with the margin trajectory and consultant attrition as the first questions to resolve.