CRH plc logo CRH - CRH plc

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 14
HOLD 6
SELL 0
STRONG
SELL
0
| PRICE TARGET: $135.60 DETAILS
HIGH: $147.00
LOW: $120.00
MEDIAN: $139.00
CONSENSUS: $135.60
UPSIDE: 35.10%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Cyclical & Capital-Intensive 80% confidence

Primary model: Normalized Earnings × Cycle Multiple

Valuation Signal Overvalued Mild
Trading 14.9% above fair value
Current Price $100.37
Bear Case $64.05 36.2% downside ($64.05 - $100.37) / $100.37 = -36.2% $4.75 × 14x + net cash
Fair Value $87.34 13.0% downside ($87.34 - $100.37) / $100.37 = -13.0% $4.75 × 18x + net cash
Bull Case $110.63 10.2% upside ($110.63 - $100.37) / $100.37 = 10.2% $4.75 × 22x + net cash

Adjust Assumptions

18.0x
4.75$

Key Value Driver

Through-cycle normalized EPS ($4.75)

Implied Market Multiple 21.1x

Plain-Language Summary

Our base-case estimate uses Normalized Earnings × Cycle Multiple. We then blend that result with the average analyst price target of $135.60 from 20 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $87.34 per share.

Warnings

This company has a built-in lending arm whose debt is mixed in with the main business. We capped the debt adjustment to avoid overstating what the core business owes.
Price-to-book value of 7.6x is above the normal range for this type of business (0.7x-2.0x). The stock may already price in a strong cycle.
Wall Street's average price target is $135.60 (from 20 analysts). Our estimate is 47% below the consensus -- consider that gap carefully.

Key Risks

  • Standard 10-year DCF produces unreliable terminal values for cyclicals
  • 'Cheap' P/E at cycle peak is the most common value trap — normalize first
  • Captive finance subsidiaries have different risk profiles from manufacturing