Fletcher Building Limited

ASX:FBU Stock Report

Market Cap: AU$2.8b

Fletcher Building Valuation

Is FBU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of FBU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FBU (A$2.59) is trading below our estimate of fair value (A$5.52)

Significantly Below Fair Value: FBU is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FBU?

Key metric: As FBU is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for FBU. This is calculated by dividing FBU's market cap by their current revenue.
What is FBU's PS Ratio?
PS Ratio0.4x
SalesNZ$7.68b
Market CapNZ$3.09b

Price to Sales Ratio vs Peers

How does FBU's PS Ratio compare to its peers?

The above table shows the PS ratio for FBU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.5x
RWC Reliance Worldwide
2x6.0%AU$4.0b
GWA GWA Group
1.6x4.1%AU$641.8m
VNT Ventia Services Group
0.5x4.4%AU$3.1b
RDX Redox
2x10.7%AU$2.3b
FBU Fletcher Building
0.4x0.8%AU$3.1b

Price-To-Sales vs Peers: FBU is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (1.5x).

Price to Sales Ratio vs Industry

How does FBU's PS Ratio compare vs other companies in the Global Building Industry?

28 CompaniesPrice / SalesEstimated GrowthMarket Cap
FBU 0.4xIndustry Avg. 1.0xNo. of Companies64PS00.81.62.43.24+
28 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: FBU is good value based on its Price-To-Sales Ratio (0.4x) compared to the Global Building industry average (1x).

Price to Sales Ratio vs Fair Ratio

What is FBU's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FBU PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ratio0.9x

Price-To-Sales vs Fair Ratio: FBU is good value based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst FBU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$2.59
AU$2.76
+6.5%
13.4%AU$3.27AU$1.95n/a10
Dec ’25AU$2.84
AU$2.75
-3.1%
13.4%AU$3.27AU$1.95n/a10
Nov ’25AU$2.74
AU$2.76
+0.7%
13.4%AU$3.27AU$1.95n/a10
Oct ’25AU$2.76
AU$2.77
+0.2%
10.7%AU$3.17AU$2.18n/a10
Sep ’25AU$2.83
AU$3.00
+6.1%
12.3%AU$3.51AU$2.24n/a10
Aug ’25AU$2.90
AU$3.21
+10.8%
17.5%AU$4.42AU$2.31n/a10
Jul ’25AU$2.72
AU$3.26
+19.8%
17.2%AU$4.47AU$2.34n/a10
Jun ’25AU$2.84
AU$3.51
+23.6%
24.3%AU$5.47AU$2.33n/a10
May ’25AU$3.39
AU$4.16
+22.6%
16.3%AU$5.48AU$3.16n/a10
Apr ’25AU$3.81
AU$4.18
+9.6%
16.3%AU$5.51AU$3.18n/a10
Mar ’25AU$3.93
AU$4.30
+9.5%
15.6%AU$5.64AU$3.25n/a11
Feb ’25AU$4.21
AU$5.28
+25.4%
9.2%AU$5.93AU$4.31n/a11
Jan ’25AU$4.41
AU$5.26
+19.3%
9.2%AU$5.95AU$4.33n/a11
Dec ’24AU$4.33
AU$5.27
+21.7%
8.3%AU$5.86AU$4.26AU$2.8410
Nov ’24AU$3.97
AU$5.27
+32.7%
8.3%AU$5.86AU$4.26AU$2.7410
Oct ’24AU$4.33
AU$5.62
+29.9%
8.2%AU$6.34AU$4.66AU$2.7610
Sep ’24AU$4.42
AU$5.65
+27.9%
10.1%AU$6.84AU$4.63AU$2.8310
Aug ’24AU$5.19
AU$5.79
+11.7%
11.7%AU$7.06AU$4.77AU$2.9010
Jul ’24AU$5.00
AU$5.78
+15.5%
12.1%AU$7.08AU$4.78AU$2.7210
Jun ’24AU$4.60
AU$5.81
+26.3%
12.4%AU$7.26AU$4.80AU$2.8410
May ’24AU$4.28
AU$5.78
+35.0%
12.2%AU$7.24AU$4.79AU$3.3910
Apr ’24AU$4.07
AU$5.66
+39.0%
12.9%AU$7.26AU$4.67AU$3.8110
Mar ’24AU$4.29
AU$5.66
+31.9%
12.9%AU$7.26AU$4.67AU$3.9310
Feb ’24AU$4.76
AU$5.88
+23.5%
9.7%AU$7.30AU$5.11AU$4.2110
Jan ’24AU$4.45
AU$6.11
+37.4%
9.7%AU$7.51AU$5.07AU$4.4110
Dec ’23AU$4.73
AU$6.01
+27.0%
9.1%AU$7.38AU$5.46AU$4.3310

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/28 17:56
End of Day Share Price 2024/12/27 00:00
Earnings2024/06/30
Annual Earnings2024/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Fletcher Building Limited is covered by 32 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Benjamin BrayshawBarrenjoey Markets Pty Limited
Brook Campbell-CrawfordBarrenjoey Markets Pty Limited
Nicholas McGarrigleBarrenjoey Markets Pty Limited