Is CRH PLC (CRH) overvalued?
On Equity Rank's model estimate, CRH trades close to its fair value (6% below it). CRH PLC (CRH) last closed at $94.81; the multi-method model fair value is $101.22.
| Price | Model fair value | Price vs model |
|---|---|---|
| $94.81 | $101.22 | 6% below |
What the answer rests on
- 4 of 12 valuation methods put CRH's value above its price and 8 put it below, so the methods disagree.
- To justify today's price, CRH's free cash flow would need to grow about 9.7% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 2.4% a year.
- CRH trades at 18.6 times its last year's earnings, against a median of 20.8 for 43 profitable Materials companies.
- Over the past year the price sat below the model fair value on 88% of trading days. The gap ranged from 21% below to 8% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind CRH's fair value · What prices assume · Other companies