Argan Valuation

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

Below Fair Value: AGX ($78.02) is trading below our estimate of fair value ($91.74)

Significantly Below Fair Value: AGX is trading below fair value, but not by a significant amount.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

AGX 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/Revenue0.9x
Enterprise Value/EBITDA14.3x
PEG Ratio1.1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AGX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average38.6x
AMRC Ameresco
29.4x29.7%US$1.6b
LMB Limbach Holdings
27.1x15.3%US$674.2m
GLDD Great Lakes Dredge & Dock
16.6x20.9%US$625.9m
GVA Granite Construction
81.2x71.4%US$2.8b
AGX Argan
27.3x24.9%US$1.0b

Price-To-Earnings vs Peers: AGX is good value based on its Price-To-Earnings Ratio (27.3x) compared to the peer average (38.6x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a28.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a28.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: AGX is expensive based on its Price-To-Earnings Ratio (27.3x) compared to the US Construction industry average (26.5x).


Price to Earnings Ratio vs Fair Ratio

What is AGX'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.

AGX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.3x
Fair PE Ratio23.3x

Price-To-Earnings vs Fair Ratio: AGX is expensive based on its Price-To-Earnings Ratio (27.3x) compared to the estimated Fair Price-To-Earnings Ratio (23.3x).


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 AGX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$78.02
US$77.50
-0.7%
9.7%US$85.00US$70.00n/a2
Jul ’25US$71.48
US$77.50
+8.4%
9.7%US$85.00US$70.00n/a2
Jun ’25US$70.63
US$65.00
-8.0%
7.7%US$70.00US$60.00n/a2
May ’25US$60.33
US$65.00
+7.7%
7.7%US$70.00US$60.00n/a2
Apr ’25US$50.43
US$54.50
+8.1%
11.9%US$61.00US$48.00n/a2
Mar ’25US$46.74
US$54.50
+16.6%
11.9%US$61.00US$48.00n/a2
Feb ’25US$45.86
US$54.50
+18.8%
11.9%US$61.00US$48.00n/a2
Jan ’25US$46.79
US$54.50
+16.5%
11.9%US$61.00US$48.00n/a2
Dec ’24US$47.00
US$53.50
+13.8%
14.0%US$61.00US$46.00n/a2
Nov ’24US$46.37
US$53.50
+15.4%
14.0%US$61.00US$46.00n/a2
Oct ’24US$45.52
US$53.50
+17.5%
14.0%US$61.00US$46.00n/a2
Sep ’24US$42.65
US$53.50
+25.4%
14.0%US$61.00US$46.00n/a2
Aug ’24US$38.20
US$53.50
+40.1%
14.0%US$61.00US$46.00n/a2
Jul ’24US$39.41
US$53.50
+35.8%
14.0%US$61.00US$46.00US$71.482
Jun ’24US$39.81
US$53.50
+34.4%
14.0%US$61.00US$46.00US$70.632
May ’24US$40.61
US$53.50
+31.7%
14.0%US$61.00US$46.00US$60.332
Apr ’24US$40.47
US$53.50
+32.2%
14.0%US$61.00US$46.00US$50.432
Mar ’24US$39.21
US$53.50
+36.4%
14.0%US$61.00US$46.00US$46.742
Feb ’24US$38.93
US$53.50
+37.4%
14.0%US$61.00US$46.00US$45.862
Jan ’24US$36.88
US$53.50
+45.1%
14.0%US$61.00US$46.00US$46.792
Dec ’23US$37.75
US$55.50
+47.0%
9.9%US$61.00US$50.00US$47.002
Nov ’23US$34.62
US$55.50
+60.3%
9.9%US$61.00US$50.00US$46.372
Oct ’23US$32.17
US$55.50
+72.5%
9.9%US$61.00US$50.00US$45.522
Sep ’23US$34.02
US$55.50
+63.1%
9.9%US$61.00US$50.00US$42.652
Aug ’23US$37.44
US$55.50
+48.2%
9.9%US$61.00US$50.00US$38.202
Jul ’23US$37.89
US$55.50
+46.5%
9.9%US$61.00US$50.00US$39.412

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


Discover undervalued companies

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.