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Builders FirstSource, Inc. — Intrinsic Value & Fair Price

BLDR
NYSEBasic MaterialsConstruction MaterialsCIK 0001316835bldr.comAbout BLDR
Last close · Oct 16, 202654.65+0.97 (+1.81%)
Market cap$5.9B
Model value · DCF · Perpetuity growth · 5y
217.39
Builders FirstSource closed at $54.65 — undervalued by 75% vs model.
137.14the model's range480.40

DCF · Perpetuity growth · 5y leads for a cyclical company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
45.01 – 241.36
Wall St. target
70.00 22% below
Below model, 1y
20 of 20 days

Price and model value

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How it is valued

Valued asCyclical
Revenue declining (~-6% recent)Thin margins (2.9% net margin)Highly cyclical earningsStrong FCF yield (14.5%)
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for cyclical companies
P/E
14.0×
EV / EBITDA
7.4×
FCF yield
14.0%
Dividend yield, TTM
0.00%
Beta
1.45
Cost of capital (WACC)
8.11%
Full financials

Analyst actions

third-party, quoted
10-16Wells Fargo · target55.00
10-16Oppenheimer · target78.00
10-08Truist Financial · target70.00
10-07RBC Capital · “Sector Perform” from “Outperform”downgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label
2 more companies list BLDR as a comparable

The weekly

One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just BLDR. No account.

About Builders FirstSource

Builders FirstSource, Inc. engages in the supply and manufacture of building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers. Its products include factory-built roof and floor trusses, wall panels and stairs, vinyl windows, custom millwork and trim, and engineered wood. The company was founded by Kevin P. O'Meara, Donald F. McAleenan and John D. Roach in March 1998 and is headquartered in Irving, TX.

CEO
Peter Jackson
Headquarters
Irving, TX
Employees
28,000
IPO
2005-06-28
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.