Installed Building Products, Inc. (IBP) 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

-40.2%

$132.68

vs $221.77 price

Levered DCF

$138.09

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

5.08

Safe zone

Rating

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	26.58×	19.15×	21.14×	11×	34.58×	30.89×	30.07×	19.14×
P/B	9.83×	6.96×	7.68×	4.98×	9.84×	9.42×	8.2×	5.74×
P/S	2.35×	1.67×	1.85×	0.92×	2.08×	1.82×	1.36×	0.78×
EV / EBITDA	14.45×	10.74×	11.53×	6.86×	16.34×	13.62×	12.47×	9.39×
Gross margin	34.0%	33.8%	33.5%	31.0%	29.9%	30.8%	28.8%	27.8%
Operating margin	13.0%	13.0%	13.3%	12.9%	9.5%	9.8%	8.0%	7.0%
Net margin	8.9%	8.7%	8.8%	8.4%	6.0%	5.9%	4.5%	4.1%
Current ratio	3.03×	2.94×	3.09×	2.7×	2.79×	2.64×	2.72×	2.27×
Debt / equity	1.48×	1.39×	1.42×	1.92×	2.25×	1.95×	2.48×	2.54×
Interest coverage	12.19×	10.37×	9.98×	8.3×	5.73×	5.34×	4.31×	4.55×
Dividend yield	1.3%	1.7%	1.2%	2.6%	0.9%	0.0%	0.0%	0.0%
Payout ratio	33.0%	33.0%	25.9%	28.1%	29.7%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	37.4%	36.4%	36.4%	45.3%	28.5%	30.5%	27.3%	30.0%
Return on invested capital	16.0%	16.0%	15.9%	16.8%	10.2%	12.1%	9.6%	10.4%
Return on assets	12.8%	12.5%	12.3%	12.6%	7.2%	8.2%	6.2%	6.6%
Free cash flow yield	4.3%	5.1%	5.4%	9.5%	2.5%	4.9%	3.6%	5.9%
Earnings yield	3.8%	5.2%	4.7%	9.1%	2.9%	3.2%	3.3%	5.2%
Enterprise value	$7.7B	$5.6B	$5.7B	$3.2B	$4.7B	$3.4B	$2.5B	$1.4B
Net debt / EBITDA	1.37×	1.26×	1.15×	1.55×	2.1×	1.57×	2.22×	2.46×
Cash conversion cycle (days)	70	63	61	60	61	51	51	45