ROAD Valuation

Construction Partners Inc

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122.280

+1.16(0.958%)1D

Overview
Forecast
Valuation
Earnings

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 42.81 is considered Fairly compared with the five-year average of 37.95. The fair price of Construction Partners Inc (ROAD) is between 74.27 to 132.01 according to relative valuation methord.

Relative Value

Fair Zone

74.27-132.01

Current Price：121.12

Fair

42.99

Trailing

Forward

17.83

EV/EBITDA

Construction Partners Inc. (ROAD) has a current EV/EBITDA of 17.83. The 5-year average EV/EBITDA is 13.17. The thresholds are as follows: Strongly Undervalued below 8.86, Undervalued between 8.86 and 11.02, Fairly Valued between 15.33 and 11.02, Overvalued between 15.33 and 17.48, and Strongly Overvalued above 17.48. The current Forward EV/EBITDA of 17.83 falls within the Strongly Overvalued range.

27.70

EV/EBIT

Construction Partners Inc. (ROAD) has a current EV/EBIT of 27.70. The 5-year average EV/EBIT is 27.25. The thresholds are as follows: Strongly Undervalued below 11.34, Undervalued between 11.34 and 19.30, Fairly Valued between 35.20 and 19.30, Overvalued between 35.20 and 43.16, and Strongly Overvalued above 43.16. The current Forward EV/EBIT of 27.70 falls within the Historic Trend Line -Fairly Valued range.

2.12

Construction Partners Inc. (ROAD) has a current PS of 2.12. The 5-year average PS is 1.36. The thresholds are as follows: Strongly Undervalued below 0.67, Undervalued between 0.67 and 1.01, Fairly Valued between 1.70 and 1.01, Overvalued between 1.70 and 2.04, and Strongly Overvalued above 2.04. The current Forward PS of 2.12 falls within the Strongly Overvalued range.

17.61

P/OCF

Construction Partners Inc. (ROAD) has a current P/OCF of 17.61. The 5-year average P/OCF is 15.58. The thresholds are as follows: Strongly Undervalued below 6.45, Undervalued between 6.45 and 11.02, Fairly Valued between 20.14 and 11.02, Overvalued between 20.14 and 24.70, and Strongly Overvalued above 24.70. The current Forward P/OCF of 17.61 falls within the Historic Trend Line -Fairly Valued range.

27.41

P/FCF

Construction Partners Inc. (ROAD) has a current P/FCF of 27.41. The 5-year average P/FCF is 58.24. The thresholds are as follows: Strongly Undervalued below -129.67, Undervalued between -129.67 and -35.71, Fairly Valued between 152.20 and -35.71, Overvalued between 152.20 and 246.16, and Strongly Overvalued above 246.16. The current Forward P/FCF of 27.41 falls within the Historic Trend Line -Fairly Valued range.

Construction Partners Inc (ROAD) has a current Price-to-Book (P/B) ratio of 7.91. Compared to its 3-year average P/B ratio of 5.00 , the current P/B ratio is approximately 58.14% higher. Relative to its 5-year average P/B ratio of 4.46, the current P/B ratio is about 77.21% higher. Construction Partners Inc (ROAD) has a Forward Free Cash Flow (FCF) yield of approximately 2.26%. Compared to its 3-year average FCF yield of 1.08%, the current FCF yield is approximately 109.65% lower. Relative to its 5-year average FCF yield of 1.08% , the current FCF yield is about 109.97% lower.

7.94

P/B

Median3y

5.00

Median5y

4.46

2.26

FCF Yield

Median3y

1.08

Median5y

1.08

Competitors Valuation Multiple

The average P/S ratio for ROAD's competitors is 1.54, providing a benchmark for relative valuation. Construction Partners Inc Corp (ROAD) exhibits a P/S ratio of 2.12, which is 37.78% above the industry average. Given its robust revenue growth of 50.50%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

ROAD.O

Construction Partners Inc

Primoris Services Corp

Installed Building Products Inc

2.58

3.08%

7.57B

Performance Decomposition

Market capitalization of ROAD increased by 85.33% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 517.79M to 779.28M.

The secondary factor is the P/E Change, contributed 40.19%to the performance.

Overall, the performance of ROAD in the past 1 year is driven by Revenue Growth. Which is more sustainable.

50.50%

517.79M → 779.28M

Revenue Growth

-5.36%

5.97 → 5.65

Margin Expansion

40.19%

63.10 → 88.46

P/E Change

85.33%