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Tetra Tech Inc (TTEK) Fair Value & Analysis

Industrials · US · Market cap $8.1B · ISIN US88162G1031

What is Tetra Tech Inc really worth?

TT Tetra Tech Inc logo Tetra Tech Inc TTEK · US
Price$36.29
Fair Value$27.20
Upside−25.1%
Quality63/100

A solid business, but trading 33% above our fair value of $27.20.

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Strengths

Healthy Growth (revenue 5y +18.3 %/yr)
Solidly profitable · 10.0% net margin
Low debt · generates free cash flow

Risks

!Trails peers (5/15)
!Moderate moat 62/100
!Weak on dividend: 14 out of 100

For context

·0.72% dividend yield
Evidence: High Range $17.29 – $36.31

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 22 days ago

Fair value updated Aug 13, 2026, revised from $20.05 to $27.20 (+35.7%) since Jul 16, 2026. Share price +3.6% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • Solid but not exceptional quality (63/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range ($17.29 to $36.31) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

$49.87 $22.49 Fair Value $27.20 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range $22.49 – $49.87 · fair‑value band $17.29 – $36.31 · the $36.29 price screens above the $27.20 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Tetra Tech Inc (TTEK) currently trades at $36.29, while our model-based Fair Value estimate is $27.20, implying the stock looks roughly 33.4% overvalued today. The Quality Score stands at 63/100 (solid quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of $30.03 per share, and 1 of the 26 models we run sit above the $36.29 price. Bear case: the Dividend Discount group reads lowest at $3.79, and 25 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Tetra Tech Inc generated revenue of $4.4B at a net margin of 10.0%. Revenue declined 4.9% year over year. It earns a return on equity of 25.7%. Net debt stands at $820M. Fundamentals as of Aug 13, 2026

Our scenario range runs from $17.29 (bear case) to $36.31 (bull case); at $36.29, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 16% below its 52-week high and 41% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −46% fair-value upside, at −25%, TTEK screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 11 months have passed since. In that time the company retained roughly $1.31 per share, which is 4.8 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence $17.35 $30.36 $50.97 78
Growth DCF $17.35 $29.59 $48.48 76
Owner Earnings $10.56 $19.07 $32.57 74
All 26 models by family
DCF Models
FCF DCF best evidence $17.35 $30.36 $50.97 78
Owner Earnings $10.56 $19.07 $32.57 74
5Y Revenue Exit $18.00 $32.32 $51.31 71
5Y EBITDA Exit $19.30 $34.89 $53.87 74
5Y P/E Exit $13.40 $23.22 $33.95 70
10Y Revenue Exit $16.90 $30.03 $49.15 65
10Y EBITDA Exit $18.39 $31.83 $51.17 67
10Y P/E Exit $14.63 $23.66 $35.48 63
Earnings-Based
Graham-Dodd $6.49 $26.00 $35.35 64
Lynch FV $6.47 $9.24 $12.01 61
PEG = 1.0 $6.47 $9.24 $12.01 57
EPV $14.39 $17.03 $19.30 74
Dividend Discount
Gordon GGM $2.20 $4.39 $6.64 67
DDM Multi-Stage $2.20 $3.79 $4.63 67
Multiples
P/E Multiple $15.03 $20.05 $25.06 63
P/S Multiple $12.17 $16.23 $20.28 58
P/B Multiple $12.17 $16.23 $20.28 55
EV/EBIT $27.48 $37.41 $47.33 66
EV/EBITDA $22.66 $30.98 $39.30 67
EV/Revenue $18.96 $28.06 $37.17 53
Asset-Based
NCAV (Graham) $3.43 $4.59 $6.86 54
Growth DCF
Growth DCF $17.35 $29.59 $48.48 76
Rev-Margin DCF $18.00 $32.07 $49.43 71
Economic Profit
Residual Income $6.57 $8.21 $19.54 69
ROIC Compounder $16.14 $21.69 $28.58 72
Growth Earnings
Growth-Adj P/E $11.36 $16.22 $21.09 67

Widest divergence: DCF Models ($30.03) versus Dividend Discount ($3.79). Highest evidence: FCF DCF (78).

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Key figures & financial health

P/E ratio 21.7
P/S ratio 0.99 P/E × margin
EPS (TTM) $1.67 price ÷ EPS = P/E 21.7
Dividend yield 0.7% payout 15.6%
Net margin 4.6% FY2025
Return on equity 25.7% TTM
More key figures
Profitability
Return on assets (EBIT) 11.9% avg 5y
Operating margin 12.5% TTM
Growth
Revenue (TTM) $4.4B TTM
Revenue growth (YoY) −4.9% 3y avg +24.3%
EPS growth (YoY) +17.0%
Balance sheet & cash flow
Free cash flow $439M FY2025
Net debt $820M FY2025 · ≈ 1.9 yrs of FCF

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 63/100

Of which business quality 63 · Market factors (momentum, volatility) 54

Profitability 53
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 68
Earnings quality: real cash, not paper profit
Fin. Strength 68
Balance sheet, leverage, solvency risk
Investment 46
Disciplined investing over empire-building
Low Volatility 60
Calm price path (market factor)
Momentum 53
Price trend over the last 3–12 months (market factor)
52W Momentum 48
Distance to the 52-week high (market factor)
Net Issuance 89
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Tetra Tech, Inc. provides consulting and engineering services focusing on water, environment, and sustainable infrastructure in the United States and internationally. The company operates through two segments, Government Services Group (GSG) and Commercial/International Services Group (CIG).

Full company description

Tetra Tech, Inc. provides consulting and engineering services focusing on water, environment, and sustainable infrastructure in the United States and internationally. The company operates through two segments, Government Services Group (GSG) and Commercial/International Services Group (CIG). The GSG segment offers consulting and engineering services, including water resources analysis and water management, environmental monitoring, data analytics, government consulting, waste management, and civil infrastructure master planning and resilient engineering design for facilities, as well as transportation and local development projects primarily to government clients, including federal, state, and local, as well as international development agencies. It also offers sustainable solutions, such as energy management consulting, and greenhouse gas inventory assessment, certification, reduction, and management services. The CIG segment provides consulting and engineering services, including natural resources, energy, and utilities, as well as sustainable infrastructure master planning and engineering design for facilities; and transportation and local development projects to commercial and international clients, including the commercial and government sectors. The company offers early data collection and monitoring, data analysis and information management, science and engineering applied research, engineering design, project management, and operations and maintenance services; climate change consulting; greenhouse gas inventory assessment, certification, reduction, and management services; environmental remediation and reconstruction services, industrial water treatment and reuse services; and engineering services, such as data centers, advanced manufacturing, security systems, training and audiovisual facilities, clean rooms, laboratories, medical facilities, and disaster preparedness facilities. The company was founded in 1966 and is headquartered in Pasadena, California.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Tetra Tech Inc reported revenue of $5.4B in FY2025 versus $3.2B in FY2021, a compound +14.1%/yr. Reported net income was $248M in FY2025, compounding +1.6%/yr from FY2021.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$5.4B
Latest YoY
+4.7%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+24.3%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+18.3%
Avg. revenue growth/yr (34Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+14.7%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, adjusted) plus dividend yield: value created per share and year.
+13.8% (13.1 + 0.7)
Revenue +14.1%/yr
FY21 $3.2B
FY22 $2.8B
FY23 $4.5B
FY24 $5.2B
FY25 $5.4B
Net income +1.6%/yr
FY21 $233M
FY22 $263M
FY23 $273M
FY24 $333M
FY25 $248M
Character of growth · EPS growth decomposed (2014-2025) +17.5 % p.a.
Revenue per share +10.1 %

of which total revenue +8.4 % · buybacks/dilution +1.6 %

EBIT margin +7.3 %
Tax rate +0.4 %
Residual (interest, one-offs) −0.9 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

TTEK screens 33% overvalued. Compare with Quanta Services, Inc →

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Cite: Fair Value Calculator (2026). "Tetra Tech Inc Fair Value". https://www.fairvalue-calculator.com/stock/TTEK

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Engineering & Construction · 816 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 63 · Top 25%
Fair Value upside −25% · Below median
Return on equity (TTM) 26% · Top 25%
Return on assets 9% · Top 25%
Net margin (TTM) 10% · Top 25%
Operating margin (TTM) 13% · Top 25%
Revenue growth −5% · Below median
Dividend yield (TTM) 0.7% · Below median
Debt / equity 0.43× · Higher than median

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/E (TTM) 21.7× · Pricier than median
P/B 4.54× · Pricier than 75% of peers
P/S (TTM) 1.83× · Pricier than 75% of peers
P/FCF 18.4× · Pricier than 75% of peers
EV/EBITDA 13.1× · Pricier than median
PEG 2.10× · Pricier than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 16
FUTURE0 · sector 11
PAST100 · sector 26
HEALTH79 · sector 94
DIVIDEND14 · sector 39

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Quanta Services, Inc PWR $620.06 $143.92 −77%
Vinci SA DG €114.35 €185.62 +62%
Comfort Systems USA, Inc FIX $1,615 $519.97 −68%
Larsen & Toubro Limited LT ₹4,072 ₹2,196 −46%
Ferrovial N.V FER €57.28 €19.17 −67%
HOCHTIEF Aktiengesellschaft HOT €426.40 €203.87 −52%
Samsung C&T Corporation 028260 373,000 KRW 261,411 KRW −30%
EMCOR Group EME $775.04 $549.47 −29%
MasTec, Inc MTZ $241.00 $100.00 −59%
Bouygues SA EN €46.65 €65.67 +41%

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Frequently asked questions

Is Tetra Tech Inc (TTEK) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of $27.20 versus a price of $36.29, about −25% upside (overvalued).
What is the fair value of TTEK?
Our model-based fair value for Tetra Tech Inc is $27.20 (as of Aug 13, 2026), built from audited fundamentals. The current price: $36.29.
What is the quality score of TTEK?
Tetra Tech Inc has a Quality Score of 63/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Tetra Tech Inc (TTEK)?
Tetra Tech Inc reported trailing-twelve-month revenue of about $4.4B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of TTEK?
The net profit margin of Tetra Tech Inc is about 10.0%, meaning it keeps roughly 10.0% of revenue as net income. Based on the latest reported figures.
Does Tetra Tech Inc pay a dividend?
Tetra Tech Inc currently shows a dividend yield of about 0.72% relative to its recent price (as of Aug 13, 2026).
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