Using the industry peer median P/E multiple (trailing + forward), Vulcan Materials Company (VMC) has a fair value of $231.14 based on 3 comparable companies in the Construction Materials industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Vulcan Materials CompanyVMC | 35,139 | 32.8x | 31.7x |
| Corteva, Inc.CTVA | 55,651 | 51.7x | 24.8x |
| Nucor CorporationNUE | 38,107 | 22.1x | 13.6x |
| Martin Marietta Materials, Inc.MLM | 35,112 | 31.0x | 33.8x |
| Industry Median | 31.0x | 24.8x | |
| (*) Profit after tax | 1,081 | 1,109 | |
| Equity Value | 33,475 | 27,516 | |
| (/) Outstanding shares | 132 | 132 | |
| Fair Price | $254 | $209 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.