IBP - Installed Building Products, Inc.
Price:
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CONSENSUS:
Hold
DETAILS
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PRICE TARGET:
$253.67
DETAILS
HIGH:
$355.00
LOW:
$200.00
MEDIAN:
$241.00
CONSENSUS:
$253.67
UPSIDE:
16.88%
AlphaVal
Deterministic, archetype-aware fair value
Cyclical & Capital-Intensive
80% confidence
Primary model: Normalized Earnings × Cycle Multiple
Adjust Assumptions
18.0x
8.61$
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