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Shares of Vulcan Materials Rank the Highest in Terms of EV/EBITDA Ratio in the Construction Materials Industry (VMC, MLM, JHX, EXP, HW)

By Shiri Gupta

Below are the three companies in the Construction Materials industry with the highest 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.

Vulcan Materials ranks highest with a an EV/EBITDA ratio of 21.98. Martin Marietta Materials is next with a an EV/EBITDA ratio of 17.82. James Hardie Industries ranks third highest with a an EV/EBITDA ratio of 16.44.

Eagle Materials follows with a an EV/EBITDA ratio of 15.55, and Headwaters rounds out the top five with a an EV/EBITDA ratio of 10.82.

SmarTrend recommended that its subscribers protect gains by selling shares of Headwaters on August 31st, 2016 by issuing a Downtrend alert when the shares were trading at $18.31. Since that call, shares of Headwaters have fallen 5.2%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: highest ev/ebitda ratio Vulcan Materials Martin Marietta Materials james hardie industries eagle materials headwaters