Jacobs Solutions Inc
JAbove valueHeld by 4 superinvestors.
SEC 10-K · fundamentals
Business quality
as of 2025-09-26Valuation basis: trailing twelve months to 2026-06-26 — latest 10-K plus unaudited 10-Q filings.
- Revenue growth
- +4.6%
- Net margin
- 2.4%
- ROE
- 7.9%
- FCF margin
- 5.0%
Valuation · value band
Above fair value
Zero-growth floor
$23
Central IV
$28
Optimistic top
$33
Jacobs Solutions Inc (J): Two methods value the business — a conservative owner-earnings DCF and a growth-credited Greenwald estimate, $23–$33 / sh. Today’s price sits above both (price $152 as of 2026-08-26).
The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.
- Recent earnings are below the multi-year average, so the band uses the lower run-rate.
Revenue growth 0% (history declining, capped at zero) · moat 10 yr · discount 12.0% · Zero-growth downside $23
Price as of 2026-08-26 · yahoo · DGS10 4.6% @ 2026-08-25.
Method & numbers
A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.
Owner-earnings DCF $25.36 – $32.20 · Greenwald $32.99 – $32.99 (neutral $32.99) · zero-growth base $32.99 · reproduction $4.91
Moat Franchise (moat) · terminal value 32% of present value · owner-earnings yield 2% vs 10Y 4.6%.
Graham earnings-power value (normalized NOPAT)$23.31 – $32.99 / sh
Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.
Years: TTM 2026-06-26, 2024, 2023, 2022, 2021
v1 simplifications: Maintenance capex (degraded) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Maintenance-capex methods diverge by 191% (> 50%); estimate is degraded. Share-based compensation is left as a real expense (not added back). Operating margin is below its multi-year average (cyclical/declining): normalized margin capped at the latest year — no peak-margin capitalization (audit #2).
Buffett owner-earnings value$27.40 – $32.63 / sh
Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 10.5–12.5% band (9–11% base + 1.5pp leverage premium). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).
Years: TTM 2026-06-26, 2024, 2023, 2022, 2021
v1 simplifications: Net income is below its multi-year average (cyclical/declining): normalized owner earnings anchored to the latest year — no peak-earnings capitalization (audit #2). Owner earnings = net income + D&A − maintenance capex (degraded); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). Maintenance-capex methods diverge by 191% (> 50%); estimate is degraded. One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% base band plus a 1.5pp leverage premium (cost of equity rises with leverage — MM Proposition II). Net debt is about 5.9 years of owner earnings, adding 1.5pp of cost-of-equity risk premium.
Asset floor: Reproduction value = tangible net assets + acquired-intangible reset proxy, ÷ diluted shares; tangible net assets alone are negative for this asset-light franchise (no R&D history to capitalize).
Moat reading: Franchise test compares earnings power (EPV) against reproduction value (tangible net assets + capitalized R&D). EPV well above reproduction value signals a moat; near it, a commodity; below it, value destruction. A directional reading, not a verdict.
Assumes a narrow moat · competitive-advantage period ≈ 10 years.
Growth value: if the moat holds for 10 yr at ROIIC ≈ -11%, $0.00–$0.00 / sh (neutral $0.00). Conservative, not a forecast.
Window TTM 2026-06-26, FY 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 21% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.
Baseline 9%–11%, net debt ≈ 5.9 years of owner earnings → +1.5pp cost-of-equity premium → effective 10.5%–12.5%.
Owner-earnings DCF: growth g₁ 0% (history declining → capped at 0) · OE FY TTM 2026-06-26, 2024, 2023, 2022, 2021 · Discount band: 10.60%–13.46% (DGS10 +4.5% to a 12% strict end, each +1.46pp for leverage premium, as of 2026-08-25). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp. Two-method midpoint gap 15%.
Valuation basis: trailing twelve months to 2026-06-26 — latest 10-K plus unaudited 10-Q filings.
How to read intrinsic valueSEC 13F · holders
Superinvestors Holding This Security
4 holders · $10.9M combined · this quarter +0 opened / -0 exited
- Value$8.2MWeight (prev→now)0.0% → 0.0% ▲
- Value$1.6MWeight (prev→now)0.1% → 0.0% ▼
- Value$786,744Weight (prev→now)0.0% → 0.0% ▼
- Value$266,868Weight (prev→now)0.1% → 0.1% ▼
SEC 13F · notes
Written summary
Written summary
Jacobs Solutions Inc (J) is held by 4 of the superinvestors tracked on Compounder, with a combined $10.9M in reported 13F value. The largest position belongs to Jeremy Grantham, where it makes up 0.0% of the portfolio.
Other notable holders by value include Ray Dalio (0.0% of its book), Ruane, Cunniff (Sequoia) (0.0% of its book) and Paul Lountzis (0.1% of its book).
Over the latest quarter, 0 of the tracked filers opened a new position in J, 1 added to existing ones, 3 trimmed, and 0 sold out entirely.
Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.
SEC 13F · co-ownership
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Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14
Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.
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