ROAD Relative Valuation
ROAD'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, ROAD is overvalued; if below, it's undervalued.
Historical Valuation
Construction Partners Inc (ROAD) is now in the Fair zone, suggesting that its current forward PE ratio of 39.49 is considered Fairly compared with the five-year average of 38.70. The fair price of Construction Partners Inc (ROAD) is between 72.30 to 128.44 according to relative valuation methord.
Relative Value
Fair Zone
72.30-128.44
Current Price：110.45
Fair
39.49
PE
1Y
3Y
5Y
14.84
EV/EBITDA
Construction Partners Inc. (ROAD) has a current EV/EBITDA of 14.84. The 5-year average EV/EBITDA is 13.52. The thresholds are as follows: Strongly Undervalued below 9.17, Undervalued between 9.17 and 11.34, Fairly Valued between 15.69 and 11.34, Overvalued between 15.69 and 17.87, and Strongly Overvalued above 17.87. The current Forward EV/EBITDA of 14.84 falls within the Historic Trend Line -Fairly Valued range.
25.52
EV/EBIT
Construction Partners Inc. (ROAD) has a current EV/EBIT of 25.52. The 5-year average EV/EBIT is 27.48. The thresholds are as follows: Strongly Undervalued below 11.89, Undervalued between 11.89 and 19.68, Fairly Valued between 35.27 and 19.68, Overvalued between 35.27 and 43.06, and Strongly Overvalued above 43.06. The current Forward EV/EBIT of 25.52 falls within the Historic Trend Line -Fairly Valued range.
1.84
PS
Construction Partners Inc. (ROAD) has a current PS of 1.84. The 5-year average PS is 1.40. The thresholds are as follows: Strongly Undervalued below 0.65, Undervalued between 0.65 and 1.03, Fairly Valued between 1.78 and 1.03, Overvalued between 1.78 and 2.15, and Strongly Overvalued above 2.15. The current Forward PS of 1.84 falls within the Overvalued range.
15.63
P/OCF
Construction Partners Inc. (ROAD) has a current P/OCF of 15.63. The 5-year average P/OCF is 15.44. The thresholds are as follows: Strongly Undervalued below 6.71, Undervalued between 6.71 and 11.08, Fairly Valued between 19.81 and 11.08, Overvalued between 19.81 and 24.18, and Strongly Overvalued above 24.18. The current Forward P/OCF of 15.63 falls within the Historic Trend Line -Fairly Valued range.
26.62
P/FCF
Construction Partners Inc. (ROAD) has a current P/FCF of 26.62. The 5-year average P/FCF is 56.43. The thresholds are as follows: Strongly Undervalued below -132.14, Undervalued between -132.14 and -37.85, Fairly Valued between 150.72 and -37.85, Overvalued between 150.72 and 245.00, and Strongly Overvalued above 245.00. The current Forward P/FCF of 26.62 falls within the Historic Trend Line -Fairly Valued range.
Construction Partners Inc (ROAD) has a current Price-to-Book (P/B) ratio of 6.88. Compared to its 3-year average P/B ratio of 5.48 , the current P/B ratio is approximately 25.61% higher. Relative to its 5-year average P/B ratio of 4.77, the current P/B ratio is about 44.34% higher. Construction Partners Inc (ROAD) has a Forward Free Cash Flow (FCF) yield of approximately 2.42%. Compared to its 3-year average FCF yield of 1.76%, the current FCF yield is approximately 37.62% lower. Relative to its 5-year average FCF yield of 0.93% , the current FCF yield is about 159.17% lower.
6.88
P/B
Median3y
5.48
Median5y
4.77
2.42
FCF Yield
Median3y
1.76
Median5y
0.93
Competitors Valuation Multiple
The average P/S ratio for ROAD's competitors is 1.11, providing a benchmark for relative valuation. Construction Partners Inc Corp (ROAD) exhibits a P/S ratio of 1.84, which is 66.01% above the industry average. Given its robust revenue growth of 67.21%, this premium appears sustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ROAD increased by 37.38% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 538.16M to 899.85M.
The secondary factor is the Margin Expansion, contributed 15.41%to the performance.
Overall, the performance of ROAD in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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Frequently Asked Questions
Is Construction Partners Inc (ROAD) currently overvalued or undervalued?
Construction Partners Inc (ROAD) is now in the Fair zone, suggesting that its current forward PE ratio of 39.49 is considered Fairly compared with the five-year average of 38.70. The fair price of Construction Partners Inc (ROAD) is between 72.30 to 128.44 according to relative valuation methord.
What is Construction Partners Inc (ROAD) fair value?
ROAD'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 Construction Partners Inc (ROAD) is between 72.30 to 128.44 according to relative valuation methord.
How does ROAD's valuation metrics compare to the industry average?
The average P/S ratio for ROAD's competitors is 1.11, providing a benchmark for relative valuation. Construction Partners Inc Corp (ROAD) exhibits a P/S ratio of 1.84, which is 66.01% above the industry average. Given its robust revenue growth of 67.21%, this premium appears sustainable.
What is the current P/B ratio for Construction Partners Inc (ROAD) as of Jan 09 2026?
As of Jan 09 2026, Construction Partners Inc (ROAD) has a P/B ratio of 6.88. This indicates that the market values ROAD at 6.88 times its book value.
What is the current FCF Yield for Construction Partners Inc (ROAD) as of Jan 09 2026?
As of Jan 09 2026, Construction Partners Inc (ROAD) has a FCF Yield of 2.42%. This means that for every dollar of Construction Partners Inc’s market capitalization, the company generates 2.42 cents in free cash flow.
What is the current Forward P/E ratio for Construction Partners Inc (ROAD) as of Jan 09 2026?
As of Jan 09 2026, Construction Partners Inc (ROAD) has a Forward P/E ratio of 39.49. This means the market is willing to pay $39.49 for every dollar of Construction Partners Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Construction Partners Inc (ROAD) as of Jan 09 2026?
As of Jan 09 2026, Construction Partners Inc (ROAD) has a Forward P/S ratio of 1.84. This means the market is valuing ROAD at $1.84 for every dollar of expected revenue over the next 12 months.