Jacobs Solutions (J) Valuation Check After Securing Key Sizewell C Nuclear Project Role

Jacobs Solutions (J) has been selected by Sizewell C for a five year Professional Services Framework on a new nuclear power station in Suffolk, England, placing the company at the center of a major low carbon energy project. See our latest analysis for Jacobs Solutions. Despite landing several sizeable contracts across nuclear, water infrastructure and high performance computing in January, Jacobs’ recent share price return has been mixed, with a 1 day decline of 2.65%, a 90 day share price return decline of 13.61% and a 1 year total shareholder return decline of 1.61%, while the 3 year total shareholder return of 39.44% and 5 year total shareholder return of 57.68% point to stronger longer run participation in the story. If this kind of project driven growth story interests you, it could be a good time to scan aerospace and defense stocks for other infrastructure and engineering names tied to long term government and energy spending. With Jacobs trading at US$136.23 and sitting at a reported 41% intrinsic discount, plus a 14% gap to analyst targets, you have to ask: is this a genuine value opportunity, or is the market already pricing in future growth? Price-to-Earnings of 51.2x: Is it justified? On a P/E of 51.2x at a last close of US$136.23, Jacobs Solutions screens as expensive compared with its peers despite the headline 41.5% discount to the SWS DCF fair value estimate of US$232.79. The P/E multiple reflects how much investors are paying today for each dollar of current earnings, which can sometimes signal confidence in future profitability. For a consulting and infrastructure delivery group like Jacobs, a high P/E can indicate the market is focusing more on expected earnings growth than on the most recent profit line, especially when recent results include large one off items. Here, the current P/E of 51.2x sits well above both the estimated fair P/E of 31.7x and the US Professional Services industry average of 24.6x, as well as the peer average of 32.2x. That gap suggests the share price is already embedding stronger profit expectations than the broader sector and the level our fair ratio implies the market could eventually gravitate toward if sentiment cools or earnings do not evolve as implied. Explore the SWS fair ratio for Jacobs Solutions Result: Price-to-Earnings of 51.2x (OVERVALUED) However, you also have to weigh risks such as earnings growth failing to match a 51.2x P/E, or large project work not translating into stronger long term returns. Find out about the key risks to this Jacobs Solutions narrative. Another View: DCF Points in the Opposite Direction While the 51.2x P/E suggests Jacobs Solutions is expensive versus peers and its own fair ratio of 31.7x, our DCF model says something very different. At a last close of US$136.23 and an estimated fair value of US$232.79, the shares screen as 41.5% undervalued. Which signal do you put more weight on? Look into how the SWS DCF model arrives at its fair value. J Discounted Cash Flow as at Jan 2026Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Jacobs Solutions for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 874 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Build Your Own Jacobs Solutions Narrative If you look at these numbers and reach a different conclusion, or simply prefer to test your own assumptions, you can build a full view in just a few minutes using Do it your way. A great starting point for your Jacobs Solutions research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision. Looking for more investment ideas? If you stop with just one company, you could miss other opportunities that better fit your style, so use the screener to widen your net in a smart way. Spot potential bargains by scanning these 874 undervalued stocks based on cash flows that currently trade at prices the market may not fully appreciate based on their underlying cash flows. Explore technology-related opportunities by checking out these 23 AI penny stocks that are tied to artificial intelligence themes across different parts of the market. Strengthen your income focus by reviewing these 13 dividend stocks with yields > 3% that offer yields above 3% while you assess whether the payouts look sustainable. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.