GVA Valuation

Granite Construction Inc

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100.940

+7.6(8.142%)1D

Overview
Forecast
Valuation
Earnings

GVA Relative Valuation

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

Historical Valuation

Granite Construction Inc (GVA) is now in the Fair zone, suggesting that its current forward PE ratio of 17.75 is considered Fairly compared with the five-year average of 14.71. The fair price of Granite Construction Inc (GVA) is between 42.93 to 150.30 according to relative valuation methord.

Relative Value

Fair Zone

42.93-150.30

Current Price：100.94

Fair

17.75

Trailing

Forward

8.55

EV/EBITDA

Granite Construction Inc. (GVA) has a current EV/EBITDA of 8.55. The 5-year average EV/EBITDA is 6.13. The thresholds are as follows: Strongly Undervalued below 3.27, Undervalued between 3.27 and 4.70, Fairly Valued between 7.56 and 4.70, Overvalued between 7.56 and 8.99, and Strongly Overvalued above 8.99. The current Forward EV/EBITDA of 8.55 falls within the Overvalued range.

12.49

EV/EBIT

Granite Construction Inc. (GVA) has a current EV/EBIT of 12.49. The 5-year average EV/EBIT is 11.51. The thresholds are as follows: Strongly Undervalued below 5.94, Undervalued between 5.94 and 8.72, Fairly Valued between 14.30 and 8.72, Overvalued between 14.30 and 17.08, and Strongly Overvalued above 17.08. The current Forward EV/EBIT of 12.49 falls within the Historic Trend Line -Fairly Valued range.

0.93

Granite Construction Inc. (GVA) has a current PS of 0.93. The 5-year average PS is 0.55. The thresholds are as follows: Strongly Undervalued below 0.19, Undervalued between 0.19 and 0.37, Fairly Valued between 0.74 and 0.37, Overvalued between 0.74 and 0.92, and Strongly Overvalued above 0.92. The current Forward PS of 0.93 falls within the Strongly Overvalued range.

9.54

P/OCF

Granite Construction Inc. (GVA) has a current P/OCF of 9.54. The 5-year average P/OCF is 9.45. The thresholds are as follows: Strongly Undervalued below 1.39, Undervalued between 1.39 and 5.42, Fairly Valued between 13.48 and 5.42, Overvalued between 13.48 and 17.51, and Strongly Overvalued above 17.51. The current Forward P/OCF of 9.54 falls within the Historic Trend Line -Fairly Valued range.

16.00

P/FCF

Granite Construction Inc. (GVA) has a current P/FCF of 16.00. The 5-year average P/FCF is 11.02. The thresholds are as follows: Strongly Undervalued below -49.28, Undervalued between -49.28 and -19.13, Fairly Valued between 41.16 and -19.13, Overvalued between 41.16 and 71.31, and Strongly Overvalued above 71.31. The current Forward P/FCF of 16.00 falls within the Historic Trend Line -Fairly Valued range.

Granite Construction Inc (GVA) has a current Price-to-Book (P/B) ratio of 4.45. Compared to its 3-year average P/B ratio of 2.59 , the current P/B ratio is approximately 71.76% higher. Relative to its 5-year average P/B ratio of 2.19, the current P/B ratio is about 103.62% higher. Granite Construction Inc (GVA) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 0.28%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.23% , the current FCF yield is about -100.00% lower.

4.45

P/B

Median3y

2.59

Median5y

2.19

7.23

FCF Yield

Median3y

0.28

Median5y

2.23

Competitors Valuation Multiple

The average P/S ratio for GVA's competitors is 2.31, providing a benchmark for relative valuation. Granite Construction Inc Corp (GVA) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 4.06%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

GVA.N

Granite Construction Inc

Brookfield Business Corp

Everus Construction Group Inc

Primoris Services Corp

Performance Decomposition

Market capitalization of GVA increased by 24.58% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 30.62 to 39.21.

The secondary factor is the Revenue Growth, contributed 4.06%to the performance.

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

4.06%

672.28M → 699.55M

Revenue Growth

-7.53%

-4.38 → -4.05

Margin Expansion

28.05%

30.62 → 39.21

P/E Change

24.58%