Summit Materials, Inc.

DB:7SU Stock Report

Market Cap: €8.5b

Summit Materials Valuation

Is 7SU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 7SU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7SU (€47.6) is trading below our estimate of fair value (€80.01)

Significantly Below Fair Value: 7SU is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7SU?

Key metric: As 7SU is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 7SU. This is calculated by dividing 7SU's market cap by their current earnings.
What is 7SU's PE Ratio?
PE Ratio60.9x
EarningsUS$147.37m
Market CapUS$8.93b

Price to Earnings Ratio vs Peers

How does 7SU's PE Ratio compare to its peers?

The above table shows the PE ratio for 7SU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.7x
HEI Heidelberg Materials
11.3x7.8%€21.0b
STO3 Sto SE KGaA
10.9x3.5%€721.0m
EVK Evonik Industries
35.4x33.1%€8.1b
SY1 Symrise
37.3x13.4%€14.6b
7SU Summit Materials
60.9x43.1%€8.9b

Price-To-Earnings vs Peers: 7SU is expensive based on its Price-To-Earnings Ratio (60.9x) compared to the peer average (23.7x).

Price to Earnings Ratio vs Industry

How does 7SU's PE Ratio compare vs other companies in the European Basic Materials Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
7SU 60.9xIndustry Avg. 12.8xNo. of Companies10PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 7SU is expensive based on its Price-To-Earnings Ratio (60.9x) compared to the European Basic Materials industry average (12.8x).

Price to Earnings Ratio vs Fair Ratio

What is 7SU'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.

7SU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio60.9x
Fair PE Ratio31.4x

Price-To-Earnings vs Fair Ratio: 7SU is expensive based on its Price-To-Earnings Ratio (60.9x) compared to the estimated Fair Price-To-Earnings Ratio (31.4x).

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 7SU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€47.60
€49.73
+4.5%
7.0%€55.36€41.27n/a13
Nov ’25€42.80
€47.14
+10.1%
11.2%€55.37€37.83n/a15
Oct ’25€34.40
€43.91
+27.7%
8.6%€52.40€37.04n/a16
Sep ’25€35.40
€43.77
+23.6%
8.8%€51.96€36.73n/a16
Aug ’25€38.00
€44.33
+16.7%
10.3%€54.86€37.49n/a16
Jul ’25€33.40
€47.05
+40.9%
8.2%€55.99€41.06n/a16
Jun ’25€35.60
€46.82
+31.5%
9.0%€55.31€40.56n/a16
May ’25€36.80
€46.56
+26.5%
10.9%€56.12€39.28n/a14
Apr ’25€40.00
€44.09
+10.2%
9.2%€55.52€38.87n/a14
Mar ’25€38.80
€42.71
+10.1%
11.1%€55.45€36.04n/a14
Feb ’25€33.00
€40.27
+22.0%
7.7%€46.00€34.96n/a13
Jan ’25€34.40
€39.36
+14.4%
7.5%€45.80€35.72n/a14
Dec ’24€31.20
€39.92
+27.9%
6.8%€46.69€36.42n/a14
Nov ’24€30.60
€40.33
+31.8%
7.2%€47.32€35.96€42.8013
Oct ’24€29.20
€40.61
+39.1%
8.5%€46.97€34.75€34.4013
Sep ’24€35.00
€40.20
+14.8%
8.1%€46.03€34.06€35.4015
Aug ’24€32.40
€36.04
+11.2%
12.0%€45.20€28.02€38.0015
Jul ’24€34.60
€34.81
+0.6%
13.0%€46.01€28.52€33.4015
Jun ’24€29.00
€34.20
+17.9%
13.0%€45.61€28.28€35.6016
May ’24€23.80
€32.48
+36.5%
16.3%€45.28€25.35€36.8016
Apr ’24€25.40
€33.86
+33.3%
15.0%€46.10€26.74€40.0015
Mar ’24€27.40
€34.39
+25.5%
15.0%€47.16€26.41€38.8016
Feb ’24€29.60
€33.41
+12.9%
16.2%€45.15€25.71€33.0016
Jan ’24€26.60
€33.16
+24.7%
19.4%€46.34€23.57€34.4015
Dec ’23€27.93
€33.81
+21.1%
19.8%€47.58€23.79€31.2015
Nov ’23€25.76
€35.46
+37.6%
21.2%€49.80€24.40€30.6015

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

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