Sterling Infrastructure, Inc.

NasdaqGS:STRL Stock Report

Market Cap: US$5.7b

Sterling Infrastructure Valuation

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

Below Fair Value: STRL ($192.97) is trading above our estimate of fair value ($188.63)

Significantly Below Fair Value: STRL is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for STRL. This is calculated by dividing STRL's market cap by their current earnings.
What is STRL's PE Ratio?
PE Ratio32.1x
EarningsUS$184.42m
Market CapUS$5.70b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for STRL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average41.2x
DY Dycom Industries
24.8x14.1%US$5.7b
IESC IES Holdings
30.4xn/aUS$5.2b
ACA Arcosa
40x35.0%US$5.1b
ROAD Construction Partners
69.6x29.5%US$4.8b
STRL Sterling Infrastructure
32.1x11.0%US$5.7b

Price-To-Earnings vs Peers: STRL is good value based on its Price-To-Earnings Ratio (32.1x) compared to the peer average (41.2x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
STRL 32.1xIndustry Avg. 34.9xNo. of Companies6PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: STRL is good value based on its Price-To-Earnings Ratio (32.1x) compared to the US Construction industry average (34.9x).

Price to Earnings Ratio vs Fair Ratio

What is STRL'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.

STRL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.1x
Fair PE Ratio23.2x

Price-To-Earnings vs Fair Ratio: STRL is expensive based on its Price-To-Earnings Ratio (32.1x) compared to the estimated Fair Price-To-Earnings Ratio (23.2x).

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 STRL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$192.97
US$191.50
-0.8%
3.4%US$198.00US$185.00n/a2
Nov ’25US$153.66
US$139.50
-9.2%
10.4%US$154.00US$125.00n/a2
Oct ’25US$142.94
US$139.50
-2.4%
10.4%US$154.00US$125.00n/a2
Sep ’25US$119.53
US$139.50
+16.7%
10.4%US$154.00US$125.00n/a2
Aug ’25US$109.98
US$140.00
+27.3%
7.1%US$150.00US$130.00n/a2
May ’25US$99.16
US$113.50
+14.5%
1.3%US$115.00US$112.00n/a2
Apr ’25US$109.81
US$113.50
+3.4%
1.3%US$115.00US$112.00n/a2
Mar ’25US$110.98
US$113.50
+2.3%
1.3%US$115.00US$112.00n/a2
Feb ’25US$78.36
US$86.50
+10.4%
0.6%US$87.00US$86.00n/a2
Jan ’25US$87.93
US$86.50
-1.6%
0.6%US$87.00US$86.00n/a2
Dec ’24US$64.86
US$92.50
+42.6%
5.9%US$98.00US$87.00n/a2
Nov ’24US$75.16
US$86.50
+15.1%
0.6%US$87.00US$86.00US$153.662
Oct ’24US$73.48
US$86.50
+17.7%
0.6%US$87.00US$86.00US$142.942
Sep ’24US$83.13
US$83.00
-0.2%
3.6%US$86.00US$80.00US$119.532
Aug ’24US$62.98
US$64.00
+1.6%
1.6%US$65.00US$63.00US$109.982
Jul ’24US$55.80
US$50.00
-10.4%
4.0%US$52.00US$48.00US$114.762
Jun ’24US$46.44
US$50.00
+7.7%
4.0%US$52.00US$48.00US$122.872
May ’24US$37.59
US$45.00
+19.7%
6.7%US$48.00US$42.00US$99.162
Apr ’24US$37.88
US$45.00
+18.8%
6.7%US$48.00US$42.00US$109.812
Mar ’24US$39.90
US$45.00
+12.8%
6.7%US$48.00US$42.00US$110.982
Feb ’24US$36.64
US$37.50
+2.3%
6.7%US$40.00US$35.00US$78.362
Jan ’24US$32.80
US$37.50
+14.3%
6.7%US$40.00US$35.00US$87.932
Dec ’23US$32.49
US$36.50
+12.3%
4.1%US$38.00US$35.00US$64.862
Nov ’23US$29.93
US$35.50
+18.6%
1.4%US$36.00US$35.00US$75.162

Analyst Forecast: Target price is lower than the current share price.

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