Federal Signal Corporation (FSS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+4.5%

$123.77

vs $118.44 price

Levered DCF

$116.71

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

7.45

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	26.75×	26.03×	29.63×	23.35×	26.27×	20.86×	17.92×	12.68×
P/B	4.78×	4.74×	4.65×	3.27×	3.36×	2.85×	3.03×	2.25×
P/S	3.03×	3.02×	2.7×	1.96×	2.17×	1.77×	1.59×	1.09×
EV / EBITDA	16.41×	16.94×	17.37×	14.6×	16.86×	12.29×	11.49×	8.68×
Gross margin	28.9%	28.6%	26.1%	24.0%	23.8%	26.0%	26.4%	25.9%
Operating margin	15.6%	15.1%	13.0%	11.2%	10.8%	11.6%	12.0%	11.2%
Net margin	11.3%	11.6%	9.1%	8.4%	8.3%	8.5%	8.9%	8.6%
Current ratio	3.02×	2.66×	2.91×	2.94×	2.53×	2.73×	2.25×	2.07×
Debt / equity	0.43×	0.21×	0.32×	0.45×	0.4×	0.33×	0.39×	0.4×
Interest coverage	24.18×	22.51×	11.4×	15.61×	29.04×	23.05×	18.62×	13.06×
Dividend yield	0.5%	0.5%	0.5%	0.8%	0.8%	1.0%	1.0%	1.6%
Payout ratio	13.8%	13.5%	15.1%	18.1%	21.9%	20.2%	17.8%	19.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	17.8%	18.2%	15.7%	14.0%	12.8%	13.7%	16.9%	17.7%
Return on invested capital	12.2%	14.9%	12.1%	9.5%	9.3%	9.5%	11.3%	11.8%
Return on assets	10.3%	12.3%	9.7%	7.9%	7.4%	8.0%	9.3%	9.2%
Free cash flow yield	3.4%	3.4%	3.5%	0.7%	2.4%	5.3%	3.5%	6.6%
Earnings yield	3.7%	3.8%	3.4%	4.3%	3.8%	4.8%	5.6%	7.9%
Enterprise value	$7.1B	$5.8B	$4.9B	$3.2B	$2.9B	$2.2B	$2.2B	$1.4B
Net debt / EBITDA	1.22×	0.47×	0.92×	1.58×	1.58×	0.87×	1.16×	1.1×
Cash conversion cycle (days)	137	108	107	118	106	99	88	96