Shan Ahmed Khan

January 25, 2026, 4:25 AM EST. ABM Industries' shares trade around $45.37, down 11.8% over the past year despite a 6.3% rise in the last 30 days. The facilities services provider, active in commercial, industrial and education sectors, faces investor scrutiny over contract stability. A two-stage discounted cash flow (DCF) analysis values ABM at $136.86 per share, suggesting the stock is undervalued by 66.8%. The DCF model, forecasting increasing free cash flows to equity up to $549.3 million by 2035, underpins this assessment. ABM's current price contrasts sharply with its intrinsic value, according to this cash flow-based metric. Investors weigh the firm's resilience against outsourcing and cost efficiency trends. Despite recent price weakness, ABM passes key undervaluation checks, presenting a notable value opportunity in the sector.