Valmont Industries Inc (VMI)

Market price: $435.84

6 valuation methods

What today’s price implies

This model grows free cash flow at the company's own recent rate of 7.2% a year for 3 years, then eases it down over the next 7 years to 2.5% — the rate a mature economy grows at, which is the standard ceiling for a perpetuity. For this DCF to equal today's price instead, free cash flow would have to grow 11.9% a year over that first 3-year period. That is the market's assumption, not ours.

How each method works

P / B: $180.48 to $488.73 (midpoint $284.45)

Values the stock at a peer multiple of its book (net asset) value — most meaningful for asset-heavy and financial companies whose balance sheet drives value.

How it’s calculated
We take book value per share (total assets minus total liabilities, from the latest balance sheet, divided by shares outstanding) and multiply it by the range of price-to-book multiples the peer group trades at.
Why it fits this industry
Where the balance sheet is the business — lenders, insurers, asset-heavy operators — the price the market pays for a dollar of net assets is a natural yardstick.
Reading this bar
The bar is the per-share value range this method implies: a conservative low, a central estimate, and an optimistic high. If the current price sits below the bar, the market is pricing the shares below what this method's inputs suggest; if it sits above, the market is pricing them higher. No single bar is a verdict — methods disagree for good reasons, so read the whole field together. Asset-light companies (brands, software) legitimately trade far above book value, so for them a P/B bar well below the price is usually structure, not signal.

P / B = (1.96/3.09/5.32)× book_value_per_share 91.93 ≈ 180.48/284.45/488.73 (per_share)

DCF (FCFF): $317.01 to $448.88 (midpoint $372.97)

Discounts the company's projected free cash flows back to today at its cost of capital — an intrinsic value built from the company's own reported figures rather than peer multiples or analyst forecasts, with capital spending charged at its three-year average share of revenue.

How it’s calculated
We project the company's free cash flow — operating profit after tax, plus depreciation, minus investment in equipment and working capital — forward over ten years in three stages: three years at the growth it has actually achieved over its last five financial years, a seven-year glide down towards a long-run rate, and that rate for ever after. Each year is discounted back to today at the company's weighted cost of capital. The low and high ends discount at slightly higher and lower rates. Capital spending is charged at its average share of revenue over the last three financial years, not at the latest year alone, and the figures panel shows those three years so the assumption is visible. Beyond the projection, where growth has settled to the long-run rate, investment is sized to that rate and to the return the company earns on capital rather than carried over from the years it was still expanding — a company growing 2.5% for ever does not keep spending like one growing at its current pace.
Why it fits this industry
This is the one bar built entirely from the company's own fundamentals — no peer comparison at all — so it anchors the field with an intrinsic, assumptions-driven estimate. It also uses only what the company has already reported: no analyst forecasts go into it, which is why it can differ sharply from published estimates built on projected earnings.
Reading this bar
The bar is the per-share value range this method implies: a conservative low, a central estimate, and an optimistic high. If the current price sits below the bar, the market is pricing the shares below what this method's inputs suggest; if it sits above, the market is pricing them higher. No single bar is a verdict — methods disagree for good reasons, so read the whole field together. DCF is sensitive to its assumptions: small changes in growth or discount rate move the answer a lot, which is what the wide low-high spread reflects. The largest single assumption is capital spending. A company whose spending has risen steeply — building factories, data centres or networks — is charged that heavier spending across the ten projected years, while the revenue it is meant to produce is not assumed, only what the company has already grown. That combination places this bar below the market price for many companies in a heavy investment phase, and the three years in the figures panel show how far the company's spending has moved.
What it assumes about the future
This model grows free cash flow at the company's own recent rate of 7.2% a year for 3 years, then eases it down over the next 7 years to 2.5% — the rate a mature economy grows at, which is the standard ceiling for a perpetuity. For this DCF to equal today's price instead, free cash flow would have to grow 11.9% a year over that first 3-year period. That is the market's assumption, not ours.

DCF (FCFF): base FCFF 371,504,889.66 grown at 7.20% a year for 3y, then eased to 2.50% over 7y and held there, discounted at WACC 9.20%±1.00% => EV 6,710,985,583/7,782,102,793/9,234,939,020 [capex 3-yr average margin 2.60% (FY2023 2.30%, FY2024 1.90%, FY2025 3.50%) x revenue 4,289,947,000 = 111,562,880.04]; enterprise_value -> per share: equity (6,067,501,583.42/7,138,618,792.94/8,591,455,020.23) / 19,139,921 shares [EV bridge: minus net debt 634,248,000, minus minority interest & preferred 9,236,000]

EV / Gross Profit: $338.69 to $695.04 (midpoint $482.58)

Values the business at a peer multiple of gross profit — useful where reported operating costs vary a lot across peers but gross economics are comparable.

How it’s calculated
We take last-twelve-month gross profit (revenue minus the direct cost of the goods or services sold), multiply it by the peer range of EV/Gross-Profit multiples, subtract net debt and any minority interests or preferred stock ranking ahead of common shareholders, and divide by shares outstanding.
Why it fits this industry
Gross profit sits between revenue and operating earnings: it credits the margin a company's products earn while ignoring overhead and investment choices that legitimately differ across peers.
Reading this bar
The bar is the per-share value range this method implies: a conservative low, a central estimate, and an optimistic high. If the current price sits below the bar, the market is pricing the shares below what this method's inputs suggest; if it sits above, the market is pricing them higher. No single bar is a verdict — methods disagree for good reasons, so read the whole field together.

EV / Gross Profit = (5.49/7.61/10.74)× gross_profit 1,298,500,000 ≈ 7,125,907,400.20/9,880,038,834.77/13,946,428,903.83 (enterprise_value); enterprise_value -> per share: equity (6,482,423,400.20/9,236,554,834.77/13,302,944,903.83) / 19,139,921 shares [EV bridge: minus net debt 634,248,000, minus minority interest & preferred 9,236,000]

EV / Revenue: $295.05 to $739.09 (midpoint $494.66)

Values the whole business at a peer multiple of sales — used when earnings are thin, volatile, or not yet meaningful, so revenue is the most reliable yardstick.

How it’s calculated
We multiply the company's last-twelve-month revenue by the range of EV/Revenue multiples its peer group trades at, subtract net debt and any minority interests or preferred stock ranking ahead of common shareholders, and divide by shares outstanding for a per-share range.
Why it fits this industry
When profits are thin, volatile, or still to come, revenue is the most dependable figure a company reports — this method values the business on the scale of what it actually sells.
Reading this bar
The bar is the per-share value range this method implies: a conservative low, a central estimate, and an optimistic high. If the current price sits below the bar, the market is pricing the shares below what this method's inputs suggest; if it sits above, the market is pricing them higher. No single bar is a verdict — methods disagree for good reasons, so read the whole field together. A pound of revenue is worth more at a high margin than a low one, so the peer group here is narrowed to companies earning a similar margin wherever enough of them exist. Where too few do, the bar falls back to the wider group and is the bluntest of the multiples — weigh it alongside the earnings-based bars.

EV / Revenue = (1.47/2.36/3.45)× revenue 4,289,947,000 ≈ 6,290,747,232.38/10,111,186,312.78/14,789,533,438.45 (enterprise_value); enterprise_value -> per share: equity (5,647,263,232.38/9,467,702,312.78/14,146,049,438.45) / 19,139,921 shares [EV bridge: minus net debt 634,248,000, minus minority interest & preferred 9,236,000]

EV / EBITDA: $378.62 to $712.77 (midpoint $503.39)

Values the whole business at a peer multiple of its cash operating earnings (EBITDA) — the workhorse comparison for capital-intensive, profitable companies.

How it’s calculated
We take the company's cash operating earnings over the last twelve months (EBITDA — earnings before interest, taxes, depreciation and amortization) and multiply them by the range of EV/EBITDA multiples comparable companies currently trade at. That gives a value for the whole business (enterprise value); we then subtract net debt and anything owed ahead of common shareholders — minority interests in subsidiaries and preferred stock — and divide by shares outstanding to get a per-share range.
Why it fits this industry
Manufacturers differ widely in plant age and depreciation policy; EBITDA puts capital-intensive industrial peers on level footing.
Reading this bar
The bar is the per-share value range this method implies: a conservative low, a central estimate, and an optimistic high. If the current price sits below the bar, the market is pricing the shares below what this method's inputs suggest; if it sits above, the market is pricing them higher. No single bar is a verdict — methods disagree for good reasons, so read the whole field together. A company can also deserve a multiple above or below its peers — faster growth, stronger margins, or higher risk all justify honest gaps.

EV / EBITDA = (11.16/14.54/20.21)× ebitda 707,041,000 ≈ 7,890,242,183.48/10,278,351,454.27/14,285,796,186.11 (enterprise_value); enterprise_value -> per share: equity (7,246,758,183.48/9,634,867,454.27/13,642,312,186.11) / 19,139,921 shares [EV bridge: minus net debt 634,248,000, minus minority interest & preferred 9,236,000]

P / E: $514.47 to $1,048.89 (midpoint $744.04)

Values the stock at a peer multiple of its earnings per share — the most familiar gauge for steadily profitable companies.

How it’s calculated
We take the company's net earnings per share over the last twelve months and multiply them by the range of price-to-earnings (P/E) multiples its peers trade at.
Why it fits this industry
For steadily profitable companies, earnings are the bottom line an owner is entitled to — P/E is the most familiar way to ask what the market pays for a dollar of profit.
Reading this bar
The bar is the per-share value range this method implies: a conservative low, a central estimate, and an optimistic high. If the current price sits below the bar, the market is pricing the shares below what this method's inputs suggest; if it sits above, the market is pricing them higher. No single bar is a verdict — methods disagree for good reasons, so read the whole field together. One unusually strong or weak year can swing a P/E — the inputs panel shows the earnings the bar is built on.

P / E = (19.05/27.54/38.83)× eps 27.01 ≈ 514.47/744.04/1,048.89 (per_share)