4 models fit Tetra Tech Inc. Common Stock and they partly agree: 2 of 4 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
Large premium(i)Silver63
Valued as a cyclical company: P/E comparison, EV/EBITDA comparison, Discounted cash flow, and Graham number.
ACCE opinionTetra Tech Inc. Common Stock (TTEK)
Fair value (4 models)
$24.14
ACCE price target
$35.00
Rating
Overvalued
Horizon
12 months
Fair value published on 18 Oct 2026, 15:06 CEST; previously $35.01 since 14 Oct 2026, 00:00 CEST.
ACCE price target published on 10 Oct 2026, 00:00 CEST.
Rating published on 18 Oct 2026, 15:06 CEST.
Price used: $36.98 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
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
53.2% above
-34.7% to fair value
ACCE score
53
out of 100
Analysts
63% buy
8 covering
P/E
22.3x
forward 21.6x
1-year return
+9.5%
Dividend yield
0.78%
Tetra Tech Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Tetra Tech runs a water and environmental consulting and engineering business, with program management and engineering services for government clients, which gives it recurring, multi-year contract work rather than project-by-project construction exposure. The structural case rests on that government and infrastructure base, with a 24.3% return on equity and a 14.2% operating margin, both of which are strong for an engineering services firm. The 3.9% revenue decline is the problem a PM needs to see first, and it means the growth driver has to be shown in the backlog and in the margin trend, not assumed from the end market. At 21.0x trailing and 19.9x forward earnings, the stock is priced for a recovery in top-line growth that the reported numbers do not yet show. The question for a deeper look is whether the revenue softness is cyclical or reflects lost contracts, and whether the forward multiple is a fair price for a return to growth.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
moderate
Revenue and earnings declining
Revenue fell 3.9% year over year and earnings fell 2.3%, even though the 5-year revenue CAGR is 18.3%. The recent trend has turned down after a strong run.
moderate
Insider selling outweighs buying
Last 10 disclosed insider trades total $0.80M in sales against $0.05M in buys. Insider ownership is only 0.5%, so the signal is modest but one-directional.
moderate
Score slipping over 90 days
The ACCE score moved from 51 to 49 over 90 days, with growth at 7 out of 100. The score is drifting lower, not collapsing.
AI research notes
AI-assisted·How I use AIWritten Oct 18, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Free cash flow over the last 12 months reached $439M, a solid cash base for the business.
Analysts rate the stock Buy or Strong Buy at 63%, and their mean price target sits 16.6% above the current price.
The company beat earnings expectations last quarter, with earnings per share of 0.42 against 0.40 expected.
Why it could disappoint
Revenue fell 3.9% year over year, a sharp reversal from its 18.3% average annual growth over five years.
Return on invested capital is just 7.3%, which is thin for a business that must keep spending to grow.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 11, 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 TTEK's valuation models land
Price
$36.98
Model fair value
$24.14
Model range
$12.03 to $32.92
Fair value $24.14
Price $36.98
The price is above the whole model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
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+Conviction breakdown and growth / value / quality / momentum scores