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Relatively Low EV/EBITDA Ratio Detected in Shares of United States Lime & Minerals in the Construction Materials Industry (USLM, HW, EXP, MLM, VMC)

By James Quinn

Below are the three companies in the Construction Materials industry with the lowest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

United States Lime & Minerals ranks lowest with a an EV/EBITDA ratio of 11.37. Following is Headwaters with a an EV/EBITDA ratio of 14.19. Eagle Materials ranks third lowest with a an EV/EBITDA ratio of 14.27.

Martin Marietta Materials follows with a an EV/EBITDA ratio of 15.50, and Vulcan Materials rounds out the bottom five with a an EV/EBITDA ratio of 17.83.

SmarTrend recommended that its subscribers protect gains by selling shares of Vulcan Materials on February 7th, 2017 by issuing a Downtrend alert when the shares were trading at $122.80. Since that call, shares of Vulcan Materials have fallen 3.0%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: lowest ev/ebitda ratio united states lime & minerals headwaters eagle materials Martin Marietta Materials Vulcan Materials