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 21.87 is considered Fairly compared with the five-year average of 19.03. The fair price of Ferguson Enterprises Inc (FERG) is between 199.15 to 253.01 according to relative valuation methord.
Relative Value
Fair Zone
199.15-253.01
Current Price：235.69
Fair
21.87
PE
1Y
3Y
5Y
Trailing
Forward
16.12
EV/EBITDA
Ferguson Enterprises Inc. (FERG) has a current EV/EBITDA of 16.12. The 5-year average EV/EBITDA is 12.76. The thresholds are as follows: Strongly Undervalued below 9.09, Undervalued between 9.09 and 10.92, Fairly Valued between 14.59 and 10.92, Overvalued between 14.59 and 16.42, and Strongly Overvalued above 16.42. The current Forward EV/EBITDA of 16.12 falls within the Overvalued range.
17.53
EV/EBIT
Ferguson Enterprises Inc. (FERG) has a current EV/EBIT of 17.53. The 5-year average EV/EBIT is 13.99. The thresholds are as follows: Strongly Undervalued below 9.65, Undervalued between 9.65 and 11.82, Fairly Valued between 16.15 and 11.82, Overvalued between 16.15 and 18.32, and Strongly Overvalued above 18.32. The current Forward EV/EBIT of 17.53 falls within the Overvalued range.
235.69
PS
Ferguson Enterprises Inc. (FERG) has a current PS of 235.69. The 5-year average PS is 4.36. The thresholds are as follows: Strongly Undervalued below -51.31, Undervalued between -51.31 and -23.48, Fairly Valued between 32.19 and -23.48, Overvalued between 32.19 and 60.02, and Strongly Overvalued above 60.02. The current Forward PS of 235.69 falls within the Strongly Overvalued range.
21.39
P/OCF
Ferguson Enterprises Inc. (FERG) has a current P/OCF of 21.39. The 5-year average P/OCF is 15.76. The thresholds are as follows: Strongly Undervalued below 9.69, Undervalued between 9.69 and 12.73, Fairly Valued between 18.79 and 12.73, Overvalued between 18.79 and 21.83, and Strongly Overvalued above 21.83. The current Forward P/OCF of 21.39 falls within the Overvalued range.
24.66
P/FCF
Ferguson Enterprises Inc. (FERG) has a current P/FCF of 24.66. The 5-year average P/FCF is 19.87. The thresholds are as follows: Strongly Undervalued below 11.39, Undervalued between 11.39 and 15.63, Fairly Valued between 24.11 and 15.63, Overvalued between 24.11 and 28.35, and Strongly Overvalued above 28.35. The current Forward P/FCF of 24.66 falls within the Overvalued range.
Ferguson Enterprises Inc (FERG) has a current Price-to-Book (P/B) ratio of 7.94. Compared to its 3-year average P/B ratio of 6.84 , the current P/B ratio is approximately 16.23% higher. Relative to its 5-year average P/B ratio of 6.21, the current P/B ratio is about 28.00% 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 4.92%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.41% , the current FCF yield is about -100.00% lower.
7.94
P/B
Median3y
6.84
Median5y
6.21
3.37
FCF Yield
Median3y
4.92
Median5y
4.41
Competitors Valuation Multiple
The average P/S ratio for FERG's competitors is 266.53, providing a benchmark for relative valuation. Ferguson Enterprises Inc Corp (FERG) exhibits a P/S ratio of 235.69, which is -11.57% 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 9.15% 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.
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FAQ
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