EME Valuation

EMCOR Group Inc

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620.000

-13.25(-2.092%)1D

Overview
Forecast
Valuation
Earnings

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 Overvalued zone, suggesting that its current forward PE ratio of 24.54 is considered Overvalued compared with the five-year average of 16.65. The fair price of EMCOR Group Inc (EME) is between 458.55 to 592.63 according to relative valuation methord. Compared to the current price of 633.25 USD , EMCOR Group Inc is Overvalued By 6.85%.

Relative Value

Fair Zone

458.55-592.63

Current Price：633.25

6.85%

Overvalued

24.02

Trailing

Forward

16.18

EV/EBITDA

EMCOR Group Inc. (EME) has a current EV/EBITDA of 16.18. The 5-year average EV/EBITDA is 10.31. The thresholds are as follows: Strongly Undervalued below 5.72, Undervalued between 5.72 and 8.01, Fairly Valued between 12.61 and 8.01, Overvalued between 12.61 and 14.90, and Strongly Overvalued above 14.90. The current Forward EV/EBITDA of 16.18 falls within the Strongly Overvalued range.

17.98

EV/EBIT

EMCOR Group Inc. (EME) has a current EV/EBIT of 17.98. The 5-year average EV/EBIT is 11.90. The thresholds are as follows: Strongly Undervalued below 7.24, Undervalued between 7.24 and 9.57, Fairly Valued between 14.23 and 9.57, Overvalued between 14.23 and 16.55, and Strongly Overvalued above 16.55. The current Forward EV/EBIT of 17.98 falls within the Strongly Overvalued range.

1.64

EMCOR Group Inc. (EME) has a current PS of 1.64. The 5-year average PS is 0.81. The thresholds are as follows: Strongly Undervalued below 0.16, Undervalued between 0.16 and 0.49, Fairly Valued between 1.13 and 0.49, Overvalued between 1.13 and 1.45, and Strongly Overvalued above 1.45. The current Forward PS of 1.64 falls within the Strongly Overvalued range.

22.03

P/OCF

EMCOR Group Inc. (EME) has a current P/OCF of 22.03. The 5-year average P/OCF is 13.37. The thresholds are as follows: Strongly Undervalued below 4.93, Undervalued between 4.93 and 9.15, Fairly Valued between 17.59 and 9.15, Overvalued between 17.59 and 21.81, and Strongly Overvalued above 21.81. The current Forward P/OCF of 22.03 falls within the Strongly Overvalued range.

23.90

P/FCF

EMCOR Group Inc. (EME) has a current P/FCF of 23.90. The 5-year average P/FCF is 17.91. The thresholds are as follows: Strongly Undervalued below 9.13, Undervalued between 9.13 and 13.52, Fairly Valued between 22.31 and 13.52, Overvalued between 22.31 and 26.70, and Strongly Overvalued above 26.70. The current Forward P/FCF of 23.90 falls within the Overvalued range.

EMCOR Group Inc (EME) has a current Price-to-Book (P/B) ratio of 9.29. Compared to its 3-year average P/B ratio of 5.56 , the current P/B ratio is approximately 67.02% higher. Relative to its 5-year average P/B ratio of 4.43, the current P/B ratio is about 109.51% higher. EMCOR Group Inc (EME) has a Forward Free Cash Flow (FCF) yield of approximately 4.33%. Compared to its 3-year average FCF yield of 6.10%, the current FCF yield is approximately -29.09% lower. Relative to its 5-year average FCF yield of 7.24% , the current FCF yield is about -40.23% lower.

9.09

P/B

Median3y

5.56

Median5y

4.43

4.26

FCF Yield

Median3y

6.10

Median5y

7.24

Competitors Valuation Multiple

The average P/S ratio for EME's competitors is 2.30, providing a benchmark for relative valuation. EMCOR Group Inc Corp (EME) exhibits a P/S ratio of 1.64, which is -28.48% above the industry average. Given its robust revenue growth of 17.39%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Comfort Systems USA Inc

Performance Decomposition

Market capitalization of EME increased by 57.82% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 18.86 to 25.73.

The secondary factor is the Revenue Growth, contributed 17.39%to the performance.

Overall, the performance of EME in the past 1 year is driven by P/E Change. Which is more unsustainable.

17.39%

3.67B → 4.30B

Revenue Growth

4.00%

6.75 → 7.02

Margin Expansion

36.43%

18.86 → 25.73

P/E Change

57.82%