EME Relative Valuation
EME's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, EME is overvalued; if below, it's undervalued.
Historical Valuation
EMCOR Group Inc (EME) is now in the Fair zone, suggesting that its current forward PE ratio of 22.64 is considered Fairly compared with the five-year average of 17.17. The fair price of EMCOR Group Inc (EME) is between 487.99 to 640.12 according to relative valuation methord.
Relative Value
Fair Zone
487.99-640.12
Current Price：606.89
Fair
22.64
PE
1Y
3Y
5Y
Trailing
Forward
14.96
EV/EBITDA
EMCOR Group Inc. (EME) has a current EV/EBITDA of 14.96. The 5-year average EV/EBITDA is 10.60. The thresholds are as follows: Strongly Undervalued below 5.84, Undervalued between 5.84 and 8.22, Fairly Valued between 12.98 and 8.22, Overvalued between 12.98 and 15.36, and Strongly Overvalued above 15.36. The current Forward EV/EBITDA of 14.96 falls within the Overvalued range.
16.66
EV/EBIT
EMCOR Group Inc. (EME) has a current EV/EBIT of 16.66. The 5-year average EV/EBIT is 12.17. The thresholds are as follows: Strongly Undervalued below 7.28, Undervalued between 7.28 and 9.72, Fairly Valued between 14.62 and 9.72, Overvalued between 14.62 and 17.07, and Strongly Overvalued above 17.07. The current Forward EV/EBIT of 16.66 falls within the Overvalued range.
611.40
PS
EMCOR Group Inc. (EME) has a current PS of 611.40. The 5-year average PS is 8.90. The thresholds are as follows: Strongly Undervalued below -136.67, Undervalued between -136.67 and -63.88, Fairly Valued between 81.69 and -63.88, Overvalued between 81.69 and 154.47, and Strongly Overvalued above 154.47. The current Forward PS of 611.40 falls within the Strongly Overvalued range.
19.75
P/OCF
EMCOR Group Inc. (EME) has a current P/OCF of 19.75. The 5-year average P/OCF is 13.70. The thresholds are as follows: Strongly Undervalued below 4.86, Undervalued between 4.86 and 9.28, Fairly Valued between 18.12 and 9.28, Overvalued between 18.12 and 22.54, and Strongly Overvalued above 22.54. The current Forward P/OCF of 19.75 falls within the Overvalued range.
21.45
P/FCF
EMCOR Group Inc. (EME) has a current P/FCF of 21.45. The 5-year average P/FCF is 18.22. The thresholds are as follows: Strongly Undervalued below 9.36, Undervalued between 9.36 and 13.79, Fairly Valued between 22.66 and 13.79, Overvalued between 22.66 and 27.09, and Strongly Overvalued above 27.09. The current Forward P/FCF of 21.45 falls within the Historic Trend Line -Fairly Valued range.
EMCOR Group Inc (EME) has a current Price-to-Book (P/B) ratio of 8.21. Compared to its 3-year average P/B ratio of 6.01 , the current P/B ratio is approximately 36.44% higher. Relative to its 5-year average P/B ratio of 4.76, the current P/B ratio is about 72.45% higher. EMCOR Group Inc (EME) has a Forward Free Cash Flow (FCF) yield of approximately 0.04%. Compared to its 3-year average FCF yield of 5.99%, the current FCF yield is approximately -99.30% lower. Relative to its 5-year average FCF yield of 6.66% , the current FCF yield is about -99.37% lower.
8.21
P/B
Median3y
6.01
Median5y
4.76
0.04
FCF Yield
Median3y
5.99
Median5y
6.66
Competitors Valuation Multiple
The average P/S ratio for EME's competitors is 324.18, providing a benchmark for relative valuation. EMCOR Group Inc Corp (EME) exhibits a P/S ratio of 611.40, which is 88.60% above the industry average. Given its robust revenue growth of 16.35%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of EME increased by 19.85% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 3.70B to 4.30B.
The secondary factor is the P/E Change, contributed 9.52%to the performance.
Overall, the performance of EME in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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