FERG PE Ratio & Valuation,Is FERG Overvalued

FERG Relative Valuation

FERG'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, FERG is overvalued; if below, it's undervalued.

Historical Valuation

Ferguson Enterprises Inc (FERG) is now in the Undervalued zone, suggesting that its current forward PE ratio of 19.09 is considered Undervalued compared with the five-year average of 19.04. The fair price of Ferguson Enterprises Inc (FERG) is between 225.02 to 283.61 according to relative valuation methord. Compared to the current price of 224.66 USD , Ferguson Enterprises Inc is Undervalued By 0.16%.

Relative Value

Fair Zone

225.02-283.61

Current Price：224.66

0.16%

Undervalued

19.09

15.14

EV/EBITDA

Ferguson Enterprises Inc. (FERG) has a current EV/EBITDA of 15.14. The 5-year average EV/EBITDA is 12.88. The thresholds are as follows: Strongly Undervalued below 9.06, Undervalued between 9.06 and 10.97, Fairly Valued between 14.80 and 10.97, Overvalued between 14.80 and 16.71, and Strongly Overvalued above 16.71. The current Forward EV/EBITDA of 15.14 falls within the Overvalued range.

16.27

EV/EBIT

Ferguson Enterprises Inc. (FERG) has a current EV/EBIT of 16.27. The 5-year average EV/EBIT is 14.09. The thresholds are as follows: Strongly Undervalued below 9.63, Undervalued between 9.63 and 11.86, Fairly Valued between 16.32 and 11.86, Overvalued between 16.32 and 18.55, and Strongly Overvalued above 18.55. The current Forward EV/EBIT of 16.27 falls within the Historic Trend Line -Fairly Valued range.

1.34

Ferguson Enterprises Inc. (FERG) has a current PS of 1.34. The 5-year average PS is 1.18. The thresholds are as follows: Strongly Undervalued below 0.81, Undervalued between 0.81 and 1.00, Fairly Valued between 1.37 and 1.00, Overvalued between 1.37 and 1.55, and Strongly Overvalued above 1.55. The current Forward PS of 1.34 falls within the Historic Trend Line -Fairly Valued range.

18.04

P/OCF

Ferguson Enterprises Inc. (FERG) has a current P/OCF of 18.04. The 5-year average P/OCF is 15.92. The thresholds are as follows: Strongly Undervalued below 9.71, Undervalued between 9.71 and 12.82, Fairly Valued between 19.03 and 12.82, Overvalued between 19.03 and 22.14, and Strongly Overvalued above 22.14. The current Forward P/OCF of 18.04 falls within the Historic Trend Line -Fairly Valued range.

21.20

P/FCF

Ferguson Enterprises Inc. (FERG) has a current P/FCF of 21.20. The 5-year average P/FCF is 19.97. The thresholds are as follows: Strongly Undervalued below 11.48, Undervalued between 11.48 and 15.72, Fairly Valued between 24.21 and 15.72, Overvalued between 24.21 and 28.45, and Strongly Overvalued above 28.45. The current Forward P/FCF of 21.20 falls within the Historic Trend Line -Fairly Valued range.

Ferguson Enterprises Inc (FERG) has a current Price-to-Book (P/B) ratio of 7.27. Compared to its 3-year average P/B ratio of 6.91 , the current P/B ratio is approximately 5.17% higher. Relative to its 5-year average P/B ratio of 6.24, the current P/B ratio is about 16.46% higher. Ferguson Enterprises Inc (FERG) has a Forward Free Cash Flow (FCF) yield of approximately 3.75%. Compared to its 3-year average FCF yield of 4.83%, the current FCF yield is approximately -22.36% lower. Relative to its 5-year average FCF yield of 4.34% , the current FCF yield is about -13.60% lower.

7.27

P/B

Median3y

6.91

Median5y

6.24

3.75

FCF Yield

Median3y

4.83

Median5y

4.34

Competitors Valuation Multiple

The average P/S ratio for FERG's competitors is 2.01, providing a benchmark for relative valuation. Ferguson Enterprises Inc Corp (FERG) exhibits a P/S ratio of 1.34, which is -33.14% above the industry average. Given its robust revenue growth of 5.11%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of FERG increased by 29.43% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 6.05 to 6.98.

The secondary factor is the P/E Change, contributed 8.95%to the performance.

Overall, the performance of FERG in the past 1 year is driven by Margin Expansion. Which is more sustainable.

5.11%

7.77B → 8.17B

Revenue Growth

15.37%

6.05 → 6.98

Margin Expansion

8.95%

20.88 → 22.74

P/E Change

29.43%

173.57 → 224.66

Mkt Cap Growth

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Frequently Asked Questions

Is Ferguson Enterprises Inc (FERG) currently overvalued or undervalued?

What is Ferguson Enterprises Inc (FERG) fair value?

FERG'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. The fair price of Ferguson Enterprises Inc (FERG) is between 225.02 to 283.61 according to relative valuation methord.

How does FERG's valuation metrics compare to the industry average?

What is the current P/B ratio for Ferguson Enterprises Inc (FERG) as of Dec 15 2025?

As of Dec 15 2025, Ferguson Enterprises Inc (FERG) has a P/B ratio of 7.27. This indicates that the market values FERG at 7.27 times its book value.

What is the current FCF Yield for Ferguson Enterprises Inc (FERG) as of Dec 15 2025?

As of Dec 15 2025, Ferguson Enterprises Inc (FERG) has a FCF Yield of 3.75%. This means that for every dollar of Ferguson Enterprises Inc’s market capitalization, the company generates 3.75 cents in free cash flow.

What is the current Forward P/E ratio for Ferguson Enterprises Inc (FERG) as of Dec 15 2025?

As of Dec 15 2025, Ferguson Enterprises Inc (FERG) has a Forward P/E ratio of 19.09. This means the market is willing to pay $19.09 for every dollar of Ferguson Enterprises Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Ferguson Enterprises Inc (FERG) as of Dec 15 2025?

As of Dec 15 2025, Ferguson Enterprises Inc (FERG) has a Forward P/S ratio of 1.34. This means the market is valuing FERG at $1.34 for every dollar of expected revenue over the next 12 months.

FERG Valuation