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 Fair zone, suggesting that its current forward PE ratio of 23.33 is considered Fairly compared with the five-year average of 19.07. The fair price of Ferguson Enterprises Inc (FERG) is between 206.64 to 261.05 according to relative valuation methord.
Relative Value
Fair Zone
206.64-261.05
Current Price：252.84
Fair
23.03
PE
1Y
3Y
5Y
Trailing
Forward
16.66
EV/EBITDA
Ferguson Enterprises Inc. (FERG) has a current EV/EBITDA of 16.66. The 5-year average EV/EBITDA is 12.86. The thresholds are as follows: Strongly Undervalued below 9.07, Undervalued between 9.07 and 10.97, Fairly Valued between 14.76 and 10.97, Overvalued between 14.76 and 16.65, and Strongly Overvalued above 16.65. The current Forward EV/EBITDA of 16.66 falls within the Strongly Overvalued range.
18.07
EV/EBIT
Ferguson Enterprises Inc. (FERG) has a current EV/EBIT of 18.07. The 5-year average EV/EBIT is 14.08. The thresholds are as follows: Strongly Undervalued below 9.64, Undervalued between 9.64 and 11.86, Fairly Valued between 16.30 and 11.86, Overvalued between 16.30 and 18.52, and Strongly Overvalued above 18.52. The current Forward EV/EBIT of 18.07 falls within the Overvalued range.
1.53
PS
Ferguson Enterprises Inc. (FERG) has a current PS of 1.53. 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 1.53 falls within the Overvalued range.
22.27
P/OCF
Ferguson Enterprises Inc. (FERG) has a current P/OCF of 22.27. The 5-year average P/OCF is 15.94. The thresholds are as follows: Strongly Undervalued below 9.63, Undervalued between 9.63 and 12.78, Fairly Valued between 19.09 and 12.78, Overvalued between 19.09 and 22.24, and Strongly Overvalued above 22.24. The current Forward P/OCF of 22.27 falls within the Strongly Overvalued range.
25.80
P/FCF
Ferguson Enterprises Inc. (FERG) has a current P/FCF of 25.80. The 5-year average P/FCF is 20.00. The thresholds are as follows: Strongly Undervalued below 11.44, Undervalued between 11.44 and 15.72, Fairly Valued between 24.27 and 15.72, Overvalued between 24.27 and 28.55, and Strongly Overvalued above 28.55. The current Forward P/FCF of 25.80 falls within the Overvalued range.
Ferguson Enterprises Inc (FERG) has a current Price-to-Book (P/B) ratio of 8.52. Compared to its 3-year average P/B ratio of 6.89 , the current P/B ratio is approximately 23.70% higher. Relative to its 5-year average P/B ratio of 6.23, the current P/B ratio is about 36.70% higher. Ferguson Enterprises Inc (FERG) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.84%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.35% , the current FCF yield is about -100.00% lower.
8.41
P/B
Median3y
6.89
Median5y
6.23
3.24
FCF Yield
Median3y
4.84
Median5y
4.35
Competitors Valuation Multiple
The average P/S ratio for FERG's competitors is 1.29, providing a benchmark for relative valuation. Ferguson Enterprises Inc Corp (FERG) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 6.93%, 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 FERG increased by 43.76% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 5.68 to 8.24.
The secondary factor is the Revenue Growth, contributed 6.93%to the performance.
Overall, the performance of FERG in the past 1 year is driven by Margin Expansion. Which is more sustainable.
People Also Watch
FAQ
Is Ferguson Enterprises Inc (FERG) currently overvalued or undervalued?
What is Ferguson Enterprises Inc (FERG) fair value?
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 05 2025?
What is the current FCF Yield for Ferguson Enterprises Inc (FERG) as of Dec 05 2025?
What is the current Forward P/E ratio for Ferguson Enterprises Inc (FERG) as of Dec 05 2025?