Booz Allen Hamilton Holdings is scored 77 for moat and 88 for management. The management score rests on a return on invested capital of 18.6% and a gross margin of 20.9% — figures that describe a business turning capital into profit efficiently. The balance sheet carries debt at 3.73x equity, which magnifies both the returns above and the risk beneath them. A solid moat alongside exceptional management is a combination worth understanding before the price matters at all.
The valuation runs on assumptions chosen to understate rather than flatter. Growth is modelled at 7.4% a year, the rate measured from the filings. The exit multiple assumed is 14.8x. That produces an intrinsic value of $47.39, a 10-CAP price of $94.59 and a payback time price of $105.62, with the value zone set at the highest of the three, $105.62. Today's price of $70.47 sits inside that zone.
Booz Allen Hamilton Holdings currently reads as a strong business at a price the model supports. That is rare enough to warrant asking what the market sees that these figures do not.
| Price | $70.47 |
| Market cap | $8.5B |
| P/E ratio | 11.0x |
| Return on invested capital | 18.6% |
| Gross margin | 20.9% |
| Debt to equity | 3.73x |
| Free cash flow yield | 9.9% |
| Growth rate used | 7.4% |
| Growth rate measured | 7.0% |
| Exit multiple assumed | 14.8x |
| Company | Moat | Buy price |
| Pentair (PNR) | 69 | $46.42 |
| Tetra Tech, Inc. (TTEK) | 81 | $33.66 |
| Oshkosh Corp (OSK) | 83 | $226.20 |
| Valmont Industries (VMI) | 54 | $209.14 |
Every number above is built on assumptions that can be changed. In Moatly you can move the growth rate, the exit multiple and the margin of safety and watch every figure recalculate, so you are testing your own view of Booz Allen Hamilton Holdings rather than accepting ours.