Federal Signal Corp (FSS) is slightly overvalued and Terex Corp (TEX) is overvalued.
Both trade above our estimate of their intrinsic value. FSS is the closer of the two: -16%, against -48% for TEX.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 10.5% (average of 3 methods) values the shares at $99.88; the price of $115.69 is 16% above that value, and 72% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
Discounting its cash flows at 9.8% (average of 3 methods) values the shares at $39.69; the price of $58.79 is 48% above that value, and 74% of that value comes from beyond year five.
Leak Score 14/100 on 3 of 12 signals
| Metric | FSS | TEX |
|---|---|---|
| Verdict | Slightly overvalued | Overvalued |
| Price | $115.69 | $58.79 |
| Intrinsic value | $99.88 | $39.69 |
| Margin of safety | -16% | -48% |
| Leak Score | 59/100 (3/12) | 14/100 (3/12) |
| Market cap | $7.1B | $6.7B |
| Revenue growth, 5 years | 14.0% | 12.0% |
| Operating margin | 16.8% | 7.0% |
| Net margin | 11.7% | 2.2% |
| Return on equity | 20.6% | 4.2% |
| Debt to equity | 0.32 | 0.55 |
| P/E | 24.9x | 30.5x |
| Forward P/E | 20.0x | 9.8x |
| P/B | 4.7x | 1.4x |
| Dividend yield | 0.5% | 1.1% |