Ferguson Enterprises Inc.

NYSE:FERG Stock Report

Market Cap: US$40.1b

Ferguson Enterprises Valuation

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

Below Fair Value: FERG ($200.82) is trading below our estimate of fair value ($219.33)

Significantly Below Fair Value: FERG 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 FERG?

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

The above table shows the Price to Earnings ratio for FERG. This is calculated by dividing FERG's market cap by their current earnings.
What is FERG's PE Ratio?
PE Ratio23.2x
EarningsUS$1.74b
Market CapUS$40.14b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for FERG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.5x
FAST Fastenal
40.6x7.6%US$46.9b
GWW W.W. Grainger
31.2x8.2%US$57.4b
URI United Rentals
21.3x9.0%US$54.9b
WSO Watsco
40.9x11.6%US$19.6b
FERG Ferguson Enterprises
23.2x8.8%US$40.1b

Price-To-Earnings vs Peers: FERG is good value based on its Price-To-Earnings Ratio (23.2x) compared to the peer average (33.5x).

Price to Earnings Ratio vs Industry

How does FERG's PE Ratio compare vs other companies in the US Trade Distributors Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
BYU BAIYU Holdings
0.8xn/aUS$8.94m
No more companies available in this PE range
FERG 23.2xIndustry Avg. 17.1xNo. of Companies7PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FERG is expensive based on its Price-To-Earnings Ratio (23.2x) compared to the US Trade Distributors industry average (16.5x).

Price to Earnings Ratio vs Fair Ratio

What is FERG'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.

FERG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.2x
Fair PE Ratio25.3x

Price-To-Earnings vs Fair Ratio: FERG is good value based on its Price-To-Earnings Ratio (23.2x) compared to the estimated Fair Price-To-Earnings Ratio (25.3x).

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 FERG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$200.82
US$225.53
+12.3%
9.4%US$258.00US$167.00n/a17
Nov ’25US$197.98
US$225.12
+13.7%
9.4%US$258.00US$167.00n/a17
Oct ’25US$199.51
US$223.00
+11.8%
9.8%US$258.00US$167.00n/a16
Sep ’25US$205.71
US$222.59
+8.2%
12.2%US$263.00US$156.00n/a17
Aug ’25US$216.33
US$223.82
+3.5%
12.3%US$263.00US$156.00n/a16
Jul ’25US$190.01
US$216.70
+14.0%
17.0%US$263.00US$106.50n/a18
Jun ’25US$205.74
US$216.20
+5.1%
17.8%US$265.00US$106.50n/a18
May ’25US$211.43
US$214.48
+1.4%
17.2%US$263.00US$106.50n/a18
Apr ’25US$217.28
US$214.48
-1.3%
17.2%US$263.00US$106.50n/a18
Mar ’25US$214.43
US$190.67
-11.1%
16.8%US$235.00US$106.00n/a16
Feb ’25US$191.68
US$188.60
-1.6%
16.1%US$225.00US$106.00n/a16
Jan ’25US$193.07
US$181.39
-6.0%
14.5%US$222.00US$106.00n/a17
Dec ’24US$172.41
US$172.56
+0.08%
12.8%US$193.00US$106.00n/a17
Nov ’24US$153.59
US$172.09
+12.0%
13.2%US$193.00US$106.00US$197.9816
Oct ’24US$164.47
US$171.23
+4.1%
12.6%US$193.00US$106.00US$199.5115
Sep ’24US$162.23
US$164.71
+1.5%
13.1%US$188.00US$106.00US$205.7114
Aug ’24US$162.21
US$163.00
+0.5%
13.5%US$188.00US$106.00US$216.3313
Jul ’24US$157.31
US$162.23
+3.1%
13.2%US$188.00US$106.00US$190.0113
Jun ’24US$145.59
US$156.64
+7.6%
14.5%US$194.00US$105.00US$205.7411
May ’24US$142.03
US$150.02
+5.6%
14.2%US$194.00US$105.00US$211.4310
Apr ’24US$133.75
US$150.02
+12.2%
14.2%US$194.00US$105.00US$217.2810
Mar ’24US$144.65
US$149.28
+3.2%
15.0%US$191.00US$107.00US$214.4310
Feb ’24US$144.41
US$145.33
+0.6%
15.6%US$191.00US$107.00US$191.689
Jan ’24US$126.97
US$145.03
+14.2%
15.9%US$191.00US$106.00US$193.079
Dec ’23US$118.31
US$138.70
+17.2%
15.8%US$191.00US$105.00US$172.419
Nov ’23US$110.10
US$138.03
+25.4%
16.1%US$191.00US$111.30US$153.599

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

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