Fletcher Building Ltd
NZX:FBU

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Fletcher Building Ltd
NZX:FBU
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Price: 2.79 NZD -0.71% Market Closed
Market Cap: NZ$3B

EV/GP

2.8
Current
2%
Cheaper
vs 3-y average of 2.9

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
2.8
=
Enterprise Value
NZ$6B
/
Gross Profit
NZ$1.9B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
2.8
=
Enterprise Value
NZ$6B
/
Gross Profit
NZ$1.9B

Valuation Scenarios

Fletcher Building Ltd is trading below its 3-year average

If EV/GP returns to its 3-Year Average (2.9), the stock would be worth NZ$2.85 (2% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+109%
Average Upside
34%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 2.8 NZ$2.79
0%
3-Year Average 2.9 NZ$2.85
+2%
5-Year Average 2.9 NZ$2.92
+5%
Industry Average 3.3 NZ$3.31
+19%
Country Average 5.8 NZ$5.84
+109%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close

Market Distribution

Lower than 75% of companies in Australia
Percentile
25th
Based on 1 296 companies
25th percentile
2.8
Low
0 — 3.4
Typical Range
3.4 — 11.1
High
11.1 —
Distribution Statistics
Australia
Min 0
30th Percentile 3.4
Median 5.8
70th Percentile 11.1
Max 27 768.2

Fletcher Building Ltd
Glance View

Fletcher Building Ltd, a cornerstone of the Australasian construction and building materials landscape, represents the legacy and innovation rolled into one formidable player. Born out of a rich history dating back to 1909, the New Zealand-based company has evolved beyond its Pacific roots to become a prominent name in the construction, manufacturing, and distribution sectors. At its core, Fletcher Building thrives on a diverse portfolio that straddles multiple segments, including building products, international markets, and significant construction projects. By integrating its operations across different segments, the company leverages synergies that enhance its strategic positioning in the marketplace. The company’s footprint extends across an array of brands and businesses that cater to infrastructure, residential, and commercial building needs, evidence of its adaptive strategies amid ever-evolving market demands. In terms of operations, Fletcher Building skillfully aligns its manufacturing capabilities with robust distribution networks, allowing it to turn raw materials into finished products that reach various markets efficiently. It oversees everything from the development of building materials like plasterboard and steel to the execution of major infrastructure projects, blending craftsmanship with strategic acumen. This vertical integration not only sharpens its competitive edge but also enables the company to pass value onto customers through cost-effective solutions. A critical revenue stream is its construction division, which manages large-scale projects that range from roads and bridges to commercial complexes and residential developments. Additionally, its building products segment remains a steady performer, encompassing everything from insulation and roofing to laminates and paneling—products essential to building endeavors worldwide. Through this multifaceted business model, Fletcher Building continues to solidify its standing as an influential force in the global construction industry, setting the stage for sustained growth and innovation.

FBU Intrinsic Value
4.54 NZD
Undervaluation 39%
Intrinsic Value
Price NZ$2.79
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