Acuity Inc (AYI) is overvalued and Powell Industries Inc (POWL) is overvalued.
Both trade above our estimate of their intrinsic value. AYI is the closer of the two: -21%, against -56% for POWL.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 10.6% (average of 3 methods) values the shares at $256.50; the price of $310.77 is 21% above that value, and 71% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
Discounting its cash flows at 10.6% (average of 3 methods) values the shares at $122.65; the price of $191.90 is 56% above that value, and 72% of that value comes from beyond year five.
Leak Score 44/100 on 2 of 12 signals
| Metric | AYI | POWL |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $310.77 | $191.90 |
| Intrinsic value | $256.50 | $122.65 |
| Margin of safety | -21% | -56% |
| Leak Score | 59/100 (3/12) | 44/100 (2/12) |
| Market cap | $9.3B | $7.0B |
| Revenue growth, 5 years | 5.5% | 16.3% |
| Operating margin | 14.7% | 19.8% |
| Net margin | 10.3% | 16.5% |
| Return on equity | 17.4% | 28.2% |
| Debt to equity | 0.28 | 0.00 |
| P/E | 20.6x | 36.8x |
| Forward P/E | 14.3x | 27.9x |
| P/B | 3.3x | 9.3x |
| Dividend yield | 0.2% | 0.6% |