L.B. Foster Company

DB:LB1A Stock Report

Market Cap: €286.9m

L.B. Foster Valuation

Is LB1A undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of LB1A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LB1A (€26.4) is trading below our estimate of fair value (€64.67)

Significantly Below Fair Value: LB1A is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LB1A?

Key metric: As LB1A is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for LB1A. This is calculated by dividing LB1A's market cap by their current earnings.
What is LB1A's PE Ratio?
PE Ratio7.2x
EarningsUS$42.76m
Market CapUS$301.08m

Price to Earnings Ratio vs Peers

How does LB1A's PE Ratio compare to its peers?

The above table shows the PE ratio for LB1A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.2x
NOEJ NORMA Group
16.4x36.4%€384.9m
WSU WashTec
18.1x13.7%€515.2m
GSC1 Gesco
22.1x35.0%€147.8m
MUB Mühlbauer Holding
16.3xn/a€522.3m
LB1A L.B. Foster
7.2x-33.3%€301.1m

Price-To-Earnings vs Peers: LB1A is good value based on its Price-To-Earnings Ratio (7.2x) compared to the peer average (18.2x).

Price to Earnings Ratio vs Industry

How does LB1A's PE Ratio compare vs other companies in the DE Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
LB1A 7.2xIndustry Avg. 14.8xNo. of Companies6PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LB1A is good value based on its Price-To-Earnings Ratio (7.2x) compared to the German Machinery industry average (14.7x).

Price to Earnings Ratio vs Fair Ratio

What is LB1A's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LB1A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.2x
Fair PE Ratio4.9x

Price-To-Earnings vs Fair Ratio: LB1A is expensive based on its Price-To-Earnings Ratio (7.2x) compared to the estimated Fair Price-To-Earnings Ratio (4.9x).

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 LB1A forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€26.40
€28.33
+7.3%
16.7%€33.05€23.61n/a2
Sep ’25€17.40
€19.97
+14.8%
4.5%€20.88€19.06n/a2
Aug ’25€22.00
€23.19
+5.4%
8.0%€25.04€21.33n/a2
Jul ’25€19.70
€23.19
+17.7%
8.0%€25.04€21.33n/a2
Jun ’25€24.80
€23.19
-6.5%
8.0%€25.04€21.33n/a2
Dec ’24€18.10
€18.69
+3.2%
15.0%€21.49€15.88n/a2
Nov ’24€18.10
€18.80
+3.9%
12.2%€21.09€16.51€17.102
Oct ’24€17.70
€18.80
+6.2%
12.2%€21.09€16.51€18.202
Sep ’24€16.00
€18.80
+17.5%
12.2%€21.09€16.51€17.402
Aug ’24€12.60
€16.95
+34.5%
24.3%€21.07€12.83€22.002
Jul ’24€12.80
€16.95
+32.4%
24.3%€21.07€12.83€19.702

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

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