Tetra Tech, Inc. (TTEK) 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

-22.4%

$30.75

vs $39.63 price

Levered DCF

$57.86

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

4.71

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	35.78×	37.73×	29.52×	26.23×	34.73×	29.84×	29.91×	27.8×
P/B	5×	6.89×	5.76×	5.83×	6.54×	4.99×	4.82×	3.92×
P/S	1.64×	2.43×	1.79×	2.43×	2.51×	2.21×	1.54×	1.28×
EV / EBITDA	20.4×	23.02×	17.51×	19.5×	27.57×	20.79×	22.46×	17.04×
Gross margin	17.7%	16.7%	16.0%	20.3%	15.5%	19.0%	13.1%	13.0%
Operating margin	11.1%	9.6%	7.9%	12.0%	8.7%	10.3%	6.1%	6.4%
Net margin	4.6%	6.4%	6.0%	9.3%	7.2%	7.4%	5.1%	4.6%
Current ratio	1.18×	1.25×	1.12×	1.26×	1.26×	1.26×	1.4×	1.69×
Debt / equity	0.55×	0.56×	0.78×	0.39×	0.37×	0.53×	0.28×	0.29×
Interest coverage	14.91×	11.24×	6.83×	25.47×	21.86×	16.66×	12.29×	10.96×
Dividend yield	0.7%	0.5%	0.6%	0.7%	0.5%	0.7%	0.6%	0.6%
Payout ratio	26.3%	17.6%	19.1%	17.5%	17.2%	20.0%	18.7%	17.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	13.9%	18.2%	19.5%	22.2%	18.9%	16.8%	16.0%	14.2%
Return on invested capital	13.4%	11.9%	9.1%	14.5%	13.4%	10.8%	12.3%	11.1%
Return on assets	5.8%	8.0%	7.2%	10.0%	9.0%	7.3%	7.4%	7.0%
Free cash flow yield	4.9%	2.7%	4.2%	4.7%	3.7%	4.8%	4.0%	4.4%
Earnings yield	2.8%	2.6%	3.4%	3.8%	2.9%	3.4%	3.3%	3.6%
Enterprise value	$9.7B	$13.4B	$9B	$7.2B	$8.4B	$5.6B	$4.9B	$3.9B
Net debt / EBITDA	1.72×	1.35×	1.79×	0.76×	0.95×	1.48×	0.71×	0.57×
Cash conversion cycle (days)	71	68	72	87	72	97	76	85