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Top 5 Companies in the Construction Materials Industry With the Highest EV/EBITDA Ratio (VMC, MLM, EXP, JHX, HW)

By David Diaz

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 22.89. Martin Marietta Materials is next with a an EV/EBITDA ratio of 18.59. Eagle Materials ranks third highest with a an EV/EBITDA ratio of 15.14.

James Hardie Industries follows with a an EV/EBITDA ratio of 14.52, and Headwaters rounds out the top five with a an EV/EBITDA ratio of 11.29.

SmarTrend recommended that subscribers consider buying shares of Eagle Materials on February 1st, 2016 as our technology indicated a new Uptrend was in progress when shares hit $53.75. Since that recommendation, shares of Eagle Materials have risen 41.5%. We continue to monitor Eagle Materials for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

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