Fomento de Construcciones y Contratas Valuation

Q: What is the Fair Price of FCC0 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

FCC0 (€1.55) is trading below our estimate of [[fair value]] (€4.81)

Is FCC0 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-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 FCC0 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FCC0 (€1.55) is trading below our estimate of fair value (€4.81)

Significantly Below Fair Value: FCC0 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FCC0?

Key metric: As FCC0 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for FCC0. This is calculated by dividing FCC0's market cap by their current earnings.
What is FCC0's PE Ratio?
PE Ratio	6.7x
Earnings	€613.94m
Market Cap	€4.09b

FCC0 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.9x
Enterprise Value/EBITDA	6x
PEG Ratio	-1.9x

Price to Earnings Ratio vs Peers

How does FCC0's PE Ratio compare to its peers?

The above table shows the PE ratio for FCC0 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	60.6x
HOT HOCHTIEF	11.8x	2.9%	€8.5b
NCH2 thyssenkrupp nucera KGaA	185x	57.3%	€1.1b
B5A BAUER	31.2x	38.2%	€167.8m
KRN Krones	14.5x	16.2%	€3.6b
FCC0 Fomento de Construcciones y Contratas	6.7x	-3.5%	€4.1b

Price-To-Earnings vs Peers: FCC0 is good value based on its Price-To-Earnings Ratio (6.7x) compared to the peer average (60.6x).

Price to Earnings Ratio vs Industry

How does FCC0's PE Ratio compare vs other companies in the European Commercial Services Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: FCC0 is good value based on its Price-To-Earnings Ratio (6.7x) compared to the European Commercial Services industry average (14.7x).

Price to Earnings Ratio vs Fair Ratio

What is FCC0'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.

FCC0 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6.7x
Fair PE Ratio	12x

Price-To-Earnings vs Fair Ratio: FCC0 is good value based on its Price-To-Earnings Ratio (6.7x) compared to the estimated Fair Price-To-Earnings Ratio (12x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.