Ferguson plc (FERG) 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

-94.2%

$14.14

vs $242.84 price

Levered DCF

-$17.10

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

5.11

Safe zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

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

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	68.99×	23.94×	26.04×	17.66×	12.83×	21.25×	20.93×	15.56×
P/B	7.41×	7.62×	8.04×	6.62×	5.84×	6.26×	4.6×	3.96×
P/S	5.25×	1.44×	1.52×	1.12×	0.95×	1.37×	1.01×	0.78×
EV / EBITDA	47.48×	16.25×	16.83×	12.78×	10.13×	14.87×	13.66×	10.79×
Gross margin	31.0%	30.7%	30.5%	30.4%	30.7%	30.6%	30.0%	29.3%
Operating margin	10.2%	8.5%	8.9%	8.9%	9.9%	8.6%	6.9%	6.4%
Net margin	7.6%	6.0%	5.9%	6.4%	7.4%	6.5%	4.8%	5.0%
Current ratio	1.73×	1.68×	1.8×	1.67×	1.65×	1.72×	1.7×	1.72×
Debt / equity	1.03×	1.02×	0.98×	1.04×	1.1×	0.72×	1.03×	0.54×
Interest coverage	17.17×	13.72×	14.82×	14.45×	25.41×	19.9×	14.75×	14.45×
Dividend yield	0.8%	1.1%	1.7%	2.1%	2.0%	3.3%	1.6%	2.6%
Payout ratio	52.1%	26.3%	45.2%	37.6%	25.4%	70.4%	34.0%	40.2%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	10.7%	31.8%	30.9%	37.5%	45.5%	29.4%	22.0%	25.5%
Return on invested capital	5.3%	15.9%	15.7%	18.6%	21.0%	18.5%	11.0%	15.5%
Return on assets	3.5%	10.5%	10.5%	11.8%	13.5%	10.7%	7.1%	9.7%
Free cash flow yield	1.0%	3.6%	3.3%	6.8%	3.2%	3.6%	6.3%	5.1%
Earnings yield	1.4%	4.2%	3.8%	5.7%	7.8%	4.7%	4.8%	6.4%
Enterprise value	$51.9B	$49.7B	$50.1B	$37.9B	$31.6B	$33.6B	$22.5B	$18.4B
Net debt / EBITDA	5.46×	1.73×	1.66×	1.55×	1.4×	1×	1.46×	0.71×
Cash conversion cycle (days)	240	63	58	53	60	50	48	44