Webuild (BIT:WBD) Valuation Spotlight After Launching Substantial Share Buyback Program

If you own or are watching shares of Webuild (BIT:WBD), the recent announcement might have caught your eye. On September 8, the company began a sizable share repurchase program, following approval at its latest Annual General Meeting. This buyback initiative enables Webuild to repurchase up to nearly 7.5% of its outstanding shares. This is a move frequently associated with management signaling optimism about the company’s future and creating flexibility for strategic deals or incentives.

The timing of the buyback comes as Webuild’s shares have delivered powerful gains this year. The stock is up 29% since January and has seen a 53% advance over the past twelve months. Momentum has picked up again in the past quarter, reversing short-term weakness in the prior month. Alongside healthy revenue and net income growth, initiatives like the buyback and recent sustainability presentations position the company in a bigger conversation about capital allocation and shareholder value.

With the stock’s upward movement and management putting their capital to work, the question is whether Webuild is now attractively priced for further gains or if the market is already baking in much of its future growth potential.

Most Popular Narrative: 15.8% Undervalued

According to the most popular market narrative, Webuild is trading below its fair value, implying that the stock is undervalued by a notable margin.

The global acceleration of infrastructure investment, driven by the need for climate resilience, decarbonization (including renewable energy, hydro, and sustainable transport), and economic recovery programs in major economies, supports a historically high multi-year backlog (€59bn). This provides strong revenue visibility and a stable foundation for future top-line growth. Webuild's increasing focus on technically complex, ESG-aligned projects (over 70% of backlog from sustainable mobility and high-impact infrastructure) positions the company to benefit as governments and investors prioritize green and resilient infrastructure, supporting order book expansion and long-term revenue growth.

What is the real math behind that bullish price target? This narrative relies on ambitious financial expansion, transformative margin improvements, and a valuation multiple that rivals global competitors. Wondering what growth expectations and projections lie at the core of this analysis? Dive in and see how bold forecasts and strategic transformation fuel the underlying story of value in Webuild.

Result: Fair Value of €4.36 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Webuild’s dependence on complex mega-projects and exposure to currency swings could challenge the optimistic outlook if execution or FX risks occur.

Find out about the key risks to this Webuild narrative.

Another View: Our SWS DCF Model

While analyst targets point to upside, our SWS DCF model offers a different angle on value. It weighs future cash flows and discounts them back to today. It currently signals Webuild is undervalued as well. Could both approaches be right, or is there more beneath the numbers?

Look into how the SWS DCF model arrives at its fair value.

Stay updated when valuation signals shift by adding Webuild to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Webuild Narrative

If you have your own take on Webuild's story or want to see how the numbers align for you, building a personal investment narrative takes just a few minutes. This approach lets you chart your own perspective. Do it your way

A great starting point for your Webuild research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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