Installed Building Products, Inc. logo IBP - Installed Building Products, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 10
HOLD 16
SELL 1
STRONG
SELL
0
| PRICE TARGET: $253.67 DETAILS
HIGH: $355.00
LOW: $200.00
MEDIAN: $241.00
CONSENSUS: $253.67
UPSIDE: 16.88%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Cyclical & Capital-Intensive 80% confidence

Primary model: Normalized Earnings × Cycle Multiple

Valuation Signal Overvalued Moderate
Trading 35.4% above fair value
Current Price $217.04
Bear Case $117.54 45.8% downside ($117.54 - $217.04) / $217.04 = -45.8% $8.61 × 14x + net cash
Fair Value $160.28 26.2% downside ($160.28 - $217.04) / $217.04 = -26.2% $8.61 × 18x + net cash
Bull Case $203.02 6.5% downside ($203.02 - $217.04) / $217.04 = -6.5% $8.61 × 22x + net cash

Adjust Assumptions

18.0x
8.61$

Key Value Driver

Through-cycle normalized EPS ($8.61)

Implied Market Multiple 25.2x

Plain-Language Summary

Our base-case estimate uses Normalized Earnings × Cycle Multiple. We then blend that result with the average analyst price target of $253.67 from 27 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $160.28 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.
Wall Street's average price target is $253.67 (from 27 analysts). Our estimate is 49% 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