Ferrovial SE

NasdaqGS:FER Stock Report

Market Cap: US$29.9b

Ferrovial Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: FER ($41.12) is trading below our estimate of fair value ($75.05)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for FER. This is calculated by dividing FER's market cap by their current earnings.
What is FER's PE Ratio?
PE Ratio38.4x
Earnings€736.00m
Market Cap€28.29b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for FER vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average38.8x
EME EMCOR Group
25.2x8.9%US$23.7b
ACM AECOM
30.6x13.6%US$15.5b
PWR Quanta Services
62.6x18.4%US$51.2b
FIX Comfort Systems USA
36.9x14.8%US$17.9b
FER Ferrovial
38.4x4.8%US$28.3b

Price-To-Earnings vs Peers: FER is good value based on its Price-To-Earnings Ratio (38.4x) compared to the peer average (38.8x).

Price to Earnings Ratio vs Industry

How does FER's PE Ratio compare vs other companies in the US Construction Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
WLMS.Q Williams Industrial Services Group
n/an/aUS$26.00
No more companies available in this PE range
FER 38.4xIndustry Avg. 35.1xNo. of Companies6PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FER is expensive based on its Price-To-Earnings Ratio (38.4x) compared to the US Construction industry average (35.2x).

Price to Earnings Ratio vs Fair Ratio

What is FER'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.

FER PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio38.4x
Fair PE Ratio23.4x

Price-To-Earnings vs Fair Ratio: FER is expensive based on its Price-To-Earnings Ratio (38.4x) compared to the estimated Fair Price-To-Earnings Ratio (23.4x).

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 FER forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$41.12
US$41.95
+2.0%
10.3%US$47.15US$29.33n/a18
Nov ’25US$40.36
US$43.00
+6.5%
10.7%US$48.54US$30.20n/a17
Oct ’25US$42.93
US$43.53
+1.4%
12.9%US$50.02US$31.12n/a18
Sep ’25US$42.06
US$43.53
+3.5%
12.9%US$50.02US$31.12n/a18
Aug ’25US$38.80
US$42.15
+8.6%
13.5%US$48.81US$30.37n/a18
Jul ’25US$39.00
US$41.06
+5.3%
13.1%US$48.29US$30.05n/a17
Jun ’25US$40.50
US$41.17
+1.7%
12.5%US$47.76US$30.40n/a17
May ’25US$37.60
US$39.23
+4.3%
14.5%US$47.07US$26.53n/a17
Apr ’25n/a
US$39.08
0%
15.5%US$47.46US$26.75n/a16
Mar ’25US$39.53
US$40.13
+1.5%
15.6%US$47.68US$22.76n/a17
Feb ’25n/a
US$37.14
0%
17.9%US$47.54US$22.69n/a16
Jan ’25n/a
US$35.27
0%
13.8%US$40.39US$22.93n/a16
Dec ’24n/a
US$35.43
0%
13.4%US$40.60US$23.04n/a17
Nov ’24n/a
US$33.32
0%
14.1%US$39.10US$22.19US$40.3619
Oct ’24US$30.35
US$32.80
+8.1%
14.6%US$39.12US$21.14US$42.9319
Sep ’24n/a
US$33.73
0%
14.0%US$40.72US$22.01US$42.0620
Aug ’24US$33.40
US$33.36
-0.1%
13.4%US$39.69US$22.05US$38.8019
Jul ’24n/a
US$32.50
0%
13.9%US$39.47US$21.93US$39.0017
Jun ’24n/a
US$30.46
0%
9.1%US$34.20US$25.65US$40.5012
May ’24n/a
US$30.75
0%
3.4%US$32.45US$29.79US$37.604
Apr ’24US$27.60
US$30.75
+11.4%
3.4%US$32.45US$29.79n/a4
Mar ’24US$27.50
US$31.13
+13.2%
3.3%US$32.52US$30.07US$39.533

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

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