Builders FirstSource, Inc. (BLDR) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+76.5%

$119.78

vs $67.86 price

Levered DCF

$101.32

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

2.1

Grey zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	26.31×	15.65×	13.84×	3.82×	10.02×	15.17×	13.23×	6.09×
P/B	2.63×	3.93×	4.51×	2.12×	3.6×	4.13×	3.56×	2.1×
P/S	0.75×	1.03×	1.25×	0.46×	0.87×	0.56×	0.4×	0.16×
EV / EBITDA	12.29×	9.76×	9.13×	3.28×	7.06×	9.45×	9.17×	6×
Gross margin	29.0%	32.8%	35.2%	34.1%	29.4%	26.0%	27.2%	24.9%
Operating margin	5.2%	9.7%	12.7%	16.6%	12.0%	6.4%	5.4%	4.8%
Net margin	2.9%	6.6%	9.0%	12.1%	8.7%	3.7%	3.0%	2.7%
Current ratio	1.86×	1.77×	1.77×	1.9×	1.86×	2.07×	1.59×	1.88×
Debt / equity	1.3×	1.01×	0.78×	0.7×	0.71×	1.65×	1.93×	2.62×
Interest coverage	2.87×	7.68×	11.33×	22.05×	18.54×	4.01×	3.58×	3.41×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	10.0%	25.1%	32.6%	55.4%	35.9%	27.2%	26.9%	34.4%
Return on invested capital	6.8%	13.9%	19.3%	32.8%	21.1%	13.1%	12.3%	13.1%
Return on assets	3.9%	10.2%	14.7%	25.9%	16.1%	7.5%	6.8%	7.0%
Free cash flow yield	7.4%	8.8%	8.6%	31.0%	8.8%	3.1%	13.3%	14.5%
Earnings yield	3.8%	6.4%	7.2%	26.2%	10.0%	6.6%	7.5%	16.4%
Enterprise value	$16.9B	$21.1B	$25B	$13.9B	$20.7B	$6.2B	$4.5B	$2.8B
Net debt / EBITDA	3.97×	1.94×	1.33×	0.8×	1.15×	2.24×	3.2×	3.32×
Cash conversion cycle (days)	49	48	52	45	54	51	43	45