Fluor Corporation should attract both the Enterprising Investor and the more conservative Defensive Investor. The Defensive Investor is only concerned with the low current ratio, while the Enterprising Investor has no initial concerns. Therefore, all value investors should feel very comfortable proceeding to the next part of the analysis, which is a determination of the company’s intrinsic value.
From a valuation side of things, the company has grown its EPSmg (normalized earnings) from $2.94 in 2010 to an estimated $3.58 for 2014. This is a very strong and impressive level of demonstrated growth, which is in line with the market’s implied estimate for earnings growth of 3.51% over the next 7-10 years. The ModernGraham valuation model, therefore, returns an estimate of intrinsic value falling within a margin of safety relative to the current price, indicating the company is fairly valued at the present time.
Be sure to check out previous ModernGraham valuations of Fluor Corporation (FLR)Â for greater perspective!
Disclaimer: Â The author did not hold aÂ position in Fluor Corporation (FLR)Â at the time of publication and had no intention of changing that position within the next 72 hours. Â Logo taken from Wikipedia for the sole purpose of identifying the company; this article is not affiliated with the company in any manner.