What Do Rising Infrastructure Investments Mean for Everus Construction Group Shares in 2025?

Trying to decide what to do with Everus Construction Group stock? You are not alone. The past month has kept investors on their toes, with the share price spiking up 8.0% in the last 30 days, only to dip by 3.5% over the past week. Even with these short-term swings, the stock is still up 15.6% year-to-date, which suggests there is more going on here than just quick trading or fleeting sentiment shifts.

Much of this momentum seems to reflect shifting attitudes in the market. With infrastructure bills making headlines and a renewed focus on construction and development, Everus has found itself in the spotlight as discussions about growth opportunities ramp up. While the one-week pullback shows that risks remain and that some investors are quick to take profits, the strong upward trend over the past month hints at renewed optimism about what the company can deliver going forward.

If you are wondering whether Everus Construction Group is undervalued, you are not alone on that front either. Our current value score stands at 3, meaning Everus looks attractively priced in three out of six major valuation checks. That puts the company right in the middle of the pack: not the most undervalued, but certainly offering some potential for value-seeking investors.

So, how exactly does Everus stack up according to different valuation frameworks, and can these classic methods still give you the full picture in this market? Let us break down each approach and at the end, we will talk about a more holistic way to put it all together.

Everus Construction Group delivered 0.0% returns over the last year. See how this stacks up to the rest of the Construction industry.

Approach 1: Everus Construction Group Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model estimates what a company is really worth by projecting its future cash flows and then discounting them back to today's value. For Everus Construction Group, this process involves calculating the amount of cash the company is expected to generate and determining how much those future dollars are worth in today's dollars.

Everus's latest reported Free Cash Flow (FCF) stands at $143.06 million, with projections showing some modest declines and slight rebounds over the next decade. According to the DCF model, Simply Wall St analysts estimate Everus’s FCF will trend near $137.98 million by 2026 and $156.65 million by 2035, with annual growth rates generally hovering around or below 3%. It is important to note that while up to five years of analyst estimates are cited, projections further out are extrapolated and introduce more uncertainty.

Based on these forecasts, the DCF model values Everus at $45.18 per share. Compared to the current trading price, this implies the stock is trading 77.2% above its intrinsic value. According to this approach, the stock appears significantly overvalued.

Result: OVERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Everus Construction Group.

Our Discounted Cash Flow (DCF) analysis suggests Everus Construction Group may be overvalued by 77.2%. Find undervalued stocks or create your own screener to find better value opportunities.

Approach 2: Everus Construction Group Price vs Earnings

The Price-to-Earnings (PE) ratio is a widely used valuation metric for profitable companies like Everus Construction Group, as it measures how much investors are willing to pay for each dollar of earnings. This makes it especially relevant when a company has positive and stable earnings.

It's important to recognize that what counts as a "normal" or "fair" PE ratio depends on several factors, including a company's growth prospects, profitability, and risk profile. High-growth firms or those with steady, predictable earnings often command higher PE ratios, while companies facing greater risks or slower growth typically trade at lower multiples.

Currently, Everus trades on a PE ratio of 24.6x. This is noticeably lower than both the Construction industry average of 35.9x and the peer group average of 36.6x. This suggests the stock is trading at a discount compared to industry benchmarks.

Rather than only comparing to peers or the broad industry, Simply Wall St uses a "Fair Ratio" to better capture the full picture. This proprietary metric takes into account factors like expected earnings growth, profit margins, market cap, and risk. For Everus, the Fair PE Ratio is 25.1x, reflecting what would be reasonable given its fundamentals and risk profile.

The Fair Ratio approach is considered more robust because it ties the valuation back to the company's unique characteristics, not just market averages which may overlook important differences. In this case, Everus’s current PE of 24.6x versus its Fair Ratio of 25.1x shows the stock is priced nearly in line with its fundamentals.

Result: ABOUT RIGHT

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Everus Construction Group Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. A Narrative is your own story or perspective about a company, where you tie together your view on what makes a business unique with your assumptions about its future revenue, profit margins, and fair value.

This approach goes beyond the numbers, linking the company's big-picture story directly to a financial forecast and a fair value estimate. Narratives are designed to be accessible, and you can use them right on Simply Wall St's platform within the Community page, where millions of investors share their views and forecasts in real time.

With Narratives, you can clearly see whether you believe it is time to buy or sell by comparing your own Fair Value to the current market price. They are dynamically updated as new financial information or news comes in, ensuring your investment thesis stays relevant.

For example, one Everus Construction Group Narrative may see strong infrastructure spending as a reason for a higher fair value, while another narrative could anticipate softer demand and assign a more conservative estimate. Each reflects a unique perspective.

Do you think there's more to the story for Everus Construction Group? Create your own Narrative to let the Community know!

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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