ROAD should not be judged by its share price alone. A useful valuation combines earnings multiples with enterprise-value measures, sales and book value, operating margins, organic growth, backlog conversion, leverage and dilution. In the latest Yahoo Finance snapshot available for this analysis, Construction Partners traded around $87.29 a share, with a market capitalization of about $5.31 billion and an enterprise value of about $7.11 billion. That translated to roughly 36.68 times trailing earnings, 24.51 times forward earnings, 1.51 times sales, 5.10 times book value, 2.04 times revenue on an enterprise-value basis and 15.01 times EV/EBITDA. Those figures suggest a premium valuation, but whether the premium is reasonable depends on how durable the company’s growth and margins prove to be.
What ROAD’s valuation numbers actually measure
Construction Partners operates heavy-construction businesses whose reported results can change materially with acquisitions, project timing, state infrastructure spending and financing. Each valuation multiple answers a different question:
As an Amazon Associate I earn from qualifying purchases.
- Price/earnings (P/E): How much investors pay for each dollar of current or expected net income.
- Enterprise value/EBITDA (EV/EBITDA): How the operating business is valued before interest, taxes, depreciation and amortization, while including debt and cash.
- Enterprise value/revenue (EV/revenue): What investors pay for each dollar of revenue, regardless of current margin.
- Price/sales: A market-capitalization version of a revenue multiple that ignores debt and cash.
- Price/book: The relationship between the share price and accounting equity, useful for examining capital intensity and acquisition accounting.
No single multiple establishes that ROAD is overvalued or undervalued. The central test is whether future cash generation, organic growth and returns on invested capital can support the price investors are paying today.
ROAD’s latest valuation snapshot
Yahoo Finance’s crawled market-data table showed the following approximate values. They are snapshots, not fixed company statistics: the share price and market-capitalization measures move during trading, while forward multiples change when analyst estimates change.
#1 Best Overall
- [Ultra-Lightweight Ear Buds Designed for Small Ears] Each earbud weighs only 3.7g and features a compact, ergonomic in-ear design made especially for small ears. Secure, low-profile, and comfortable for workouts, all-day wear or overnight sleeping.The ultra-slim profile sits flush in your ear with no hard edges poking or rubbing, so you can even sleep on your side without discomfort.
- [Immersive Stereo Sound with TOZO OrigX Technology] TOZO OrigX tuning delivers clear vocals, balanced mids, and natural stereo sound for music, podcasts, and videos.
- [Long Battery Life for Daily Use] Get up to 7 hours of playtime on a single charge, with up to 32 hours total using the charging case—ideal for workdays, commuting, and extended listening sessions.
- [Bluetooth 5.3 & Stable Connection] Bluetooth 5.3 provides fast pairing, stable wireless performance, and reduced dropouts as you move around home or office.
- [Deep Bass with Clear Vocals] High-performance drivers produce punchy bass while keeping vocals clean and detailed for everyday listening.
| Measure | Approximate value | What it tells you |
|---|---|---|
| Share price | $87.29 | The quoted price of one share at the time of the snapshot |
| Market capitalization | $5.31 billion | The market value of outstanding equity |
| Enterprise value | $7.11 billion | Equity value adjusted for debt, cash and other enterprise claims |
| Trailing P/E | 36.68 | Price relative to reported past earnings |
| Forward P/E | 24.51 | Price relative to consensus expected earnings; estimates can change |
| Price/sales | 1.51 | Equity value relative to revenue |
| Price/book | 5.10 | Equity value relative to reported shareholders’ equity |
| EV/revenue | 2.04 | Total operating-business value relative to revenue |
| EV/EBITDA | 15.01 | Operating-business value relative to EBITDA |
The gap between a 36.68-times trailing P/E and a 24.51-times forward P/E implies that the market expects earnings to grow. That expectation is valuable only if it is achieved without an offsetting increase in debt, share count or execution risk.
Why ROAD’s enterprise value is higher than its market capitalization
Enterprise value is designed to approximate the value of the operating business available to all capital providers. A simplified calculation is:
Enterprise value = market capitalization + debt and other debt-like claims − cash and cash equivalents.
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
Construction Partners’ September 30, 2025 balance sheet listed $156.1 million of cash, $1.574 billion of long-term debt and $38.5 million of current maturities. It also reported $912.0 million of stockholders’ equity. Because debt substantially exceeds cash, adding net debt to the $5.31 billion equity value produces an enterprise value near $7.11 billion.
This is why comparing ROAD’s market capitalization with a debt-free peer can be misleading. Two companies with identical equity values can have very different enterprise values if one uses more borrowing. EV/EBITDA and EV/revenue put the operating businesses on a more comparable basis, although analysts must still check whether EBITDA is adjusted consistently.
Rank #2
- 【IP68 Waterproof Multifunctinal Smart Watch】Torjalph fitness activity tracker smart watch is IP68 waterproof technology ,you can wear it when swimming,handwashing,it's rain-proof which means that you perform multiple exercise modes outside without worrying about sweat or rain corroding your fitness smart watch,and this watch equipped with a 230 mAh large capacity battery magnetic charging ,and this sports activity tracker watch can be used 5-7 days If fully charged.
- 【Larger 1.83'' Full Screen Watch & Multi-dial Selection】1.83 inch full HD color touch screen smart watch for men / women provides excellent 240*284 resolution image quality ,This Bluetooth smart watch offers a better touch experience and remarkable immersion and ,more than 200 watch faces for you to choose from App"Da Fit ", you can change the dial style according to your mood to wear keeping the world on your wrist
- 【Accurate Activity Tracker Smart Watch 】sports watch activity tracker uses sweat and dust resistant breathable silicone strap, our Fitness Tracker Smart Watch for Android iOS Phones supports 12 sports modes,walking,running,bicycle,swimming,badminton,basketball,football,rope skipping. This bluetooth calls smart watch for men women is lightweight and stylish, bringing more convenient and relaxing sports experience while also providing more protection.
- 【Your 24 Hour Personal Daily Health Monitor】Fitness watch for women men full touch screen IP67 waterproof bluetooth smartwatch for Android iOS Phones with heart rate blood pressure monitor multifunction Andriod smart watch with steps counter sleep monitor sports fitness watch, monitoring blood oxygen saturation allows you to understand your physical condition in real time to track fitness progress ,to know your health status in time.
- 【More Functions Bluetooth Call Smart Watch】This fitness activity smart watch full screen for iPhone and Android phones includes a bunch of new features including:The bluetooth smart watch can hang up the phone, receive and display WhatsAPP /Text /Facebook /Twitter /Messenger reminder.Support sedentary reminder, alarm clock, stopwatch, timer,weather information,music control, remote camera control compatible with Android 5.0 and above or iOS 9.0 and above smartphones.
How to read each ROAD multiple
Trailing and forward P/E
Trailing P/E uses the last reported earnings period. At approximately 36.68 times, it says investors were paying a substantial premium for the $1.84 of fiscal-2025 diluted EPS. Forward P/E, at about 24.51 times, uses expected future earnings rather than a completed reporting period. It can be more informative for a growing contractor, but it is also more fragile because the denominator is an estimate.
Use P/E when net income is representative of the business and interest expense is not distorting comparisons. Ask whether earnings growth comes from higher same-market volumes, improved margins, acquisitions or a lower share count. A falling forward P/E does not automatically mean the stock is cheap; it can simply mean that an optimistic forecast has been embedded in the calculation.
Windows Errors? Fix Them Before They Spread
Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallOutdated Drivers Are Slowing You Down
One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchEV/EBITDA
ROAD’s approximately 15.01-times EV/EBITDA multiple incorporates the company’s debt and cash. It is useful when comparing contractors with different financing structures because interest expense does not determine EBITDA. However, EBITDA is not cash flow. Construction businesses still need equipment investment, working capital and interest payments, and adjusted EBITDA may exclude different items from one company to another.
Before comparing ROAD with an infrastructure or heavy-construction peer, align fiscal years and definitions. Confirm whether each company excludes acquisition costs, stock compensation, restructuring or other items. A lower reported multiple is not necessarily cheaper if its EBITDA is calculated more generously.
EV/revenue and price/sales
ROAD’s EV/revenue of about 2.04 times and price/sales of about 1.51 times provide a margin-agnostic cross-check. These measures are useful when acquisition activity or cyclical project timing makes earnings unusually high or low. They are not sufficient by themselves: a 2-times revenue company with a 5% operating margin has a very different economic profile from one with a 15% margin.
Rank #3
- [Low Noise High Fidelity] New bee guitar cord with 22AWG oxygen-free-copper center conductors provides enhanced signal transfer, the PVC insulation material and the high-density stranded copper double shield provide noise rejection for quiet operation
- [Ideal for Choice] New bee 1/4 straight and right angle metal connectors, ensures a secure connection in any instrument, pedal, or amp jack. L shape great fro on stage guitar stands
- [Wide Compatible] Suitable for mixer, power amplifier, microphone, effector, decoder, equalizer, electoronic organ, electric guitar, electric bass and other electronic equipments. Widely used in the installation of smart home, karaoke speaker, professional stage audio, etc
- [Easy Disassemble] Making incidental repairs quick and easy! Very nice, flexible cable
- [Dont Hesite to Order] 24 hours customer services and professional technology team are standing by
Revenue quality matters as much as revenue quantity. Determine whether reported sales are organic, acquired or driven by unusually favorable project timing. Then compare the multiple with gross-margin and EBITDA-margin trends.
Recommended Free Tools
Price/book
At approximately 5.10 times book value, ROAD trades well above its reported accounting equity. That can be justified when the business earns high returns on capital, but book value is not a liquidation estimate for a contractor. Acquisitions can create goodwill and intangible assets, while equipment, receivables and contract assets may not realize their carrying values under stress. Price/book is therefore best used as a capital-intensity and acquisition-accounting check, not as a standalone fair-value model.
The operating results behind the multiples
Construction Partners reported fiscal-2025 revenue of $2.812 billion, gross profit of $439.1 million, operating income of $224.8 million, net income of $101.8 million and diluted EPS of $1.84. Fiscal-2024 revenue was $1.824 billion, so the year-over-year comparison reflects a materially larger revenue base.
Those figures imply a fiscal-2025 gross margin of roughly 15.6% and operating margin of roughly 8.0%. The margins are more informative than revenue alone: a premium valuation requires confidence that incremental sales will generate attractive operating profit rather than merely increase low-margin volume. Track margins by quarter and ask whether changes reflect mix, cost inflation, weather, project closeout gains or acquisition accounting.
What growth is organic, and what comes from acquisitions?
For the quarter ended March 31, 2026, Construction Partners reported 35% year-over-year growth in both revenue and adjusted EBITDA, including 11% organic revenue growth. The company’s May 8, 2026 fiscal-2026 second-quarter earnings release described the result this way: “Strong financial performance in the quarter led to 35 percent growth in both revenue and Adjusted EBITDA, including 11 percent organic revenue growth.”
Quick wins for a faster PC:
Clear out junk files and repair common Windows errorsFree Scan →Scan for outdated or missing drivers - takes under a minuteDriver Scan →Repair Windows errors before they cause bigger problemsFix Now →Rank #4
- Digital Family Calendar: BSIMB digital calendar wall touch screen puts an end to your chaotic life. Designed for busy families, the digital calendar keeps you organised and in step with your family. Assign different colours and tasks to each family member to make family scheduling easier and more intuitive.
- Easy Setup and Auto-Sync: Plug in, connect to WLAN and auto-syn your electric calendar in minutes. Digital wall calendar compatible with Google calendar, iCloud calendar, Outlook calendar, Cozi calendar and Yahoo calendar. Add events directly on the device or through the ecalendar app. Electronic calendar stays current whether you're at work or traveling—no manual updates needed.
- All-In-One Home Assistant: Smart calendar builds habits and encourage independence with personalised chores. Display daily meal plan to reduce the daily ‘What's for dinner?’ stress. To-do lists keep track of everything you want. Turning chores into valuable achievements with stars and rewards, making life easier and more enjoyable.
- Manage Anytime Anywhere: BSIMB electronic calendar for family stay connected with the powerful ecalendar app. Access and manage your digital wall calendar anytime, anywhere with free features like stars & rewards, photo screensaver, chore charts, meals plans, to-do lists etc. Electronic planner paid features like Magic Import tailor advanced tools for users with special needs.
- Stay in Touch with Loved Ones: Share photos or videos from your phone to electronic wall calendar with app, instantly update your life moment, and keep in touch with your family, especially those who are far away; you can also surprise your smart calendar digital wall by sending him a wish card; it's also great for keeping tech-illiterate elders in touch with the youngsters.
The distinction is critical for valuation. Acquisition-led growth can expand geographic reach and purchasing scale, but it can also add goodwill, integration costs, debt and a larger share count. Organic growth is a clearer indicator of demand within the existing business. A sensible review separates:
- same-market or same-branch revenue growth;
- revenue acquired during the period;
- margin performance before and after integration;
- cash paid, debt raised and shares issued for acquisitions; and
- the acquired businesses’ contribution to EBITDA and free cash flow.
Does the backlog justify a premium multiple?
Construction Partners reported a record project backlog of $3.36 billion at June 30, 2026 and raised its fiscal-2026 outlook. Backlog provides visibility because it represents contracted work expected to be performed, but it is not the same as guaranteed profit or cash flow.
To test whether backlog supports ROAD’s valuation, examine four conversion questions:
- Timing: How much backlog is scheduled for the next 12 months, and how much extends beyond that period?
- Margin: What gross and EBITDA margins were assumed when contracts were booked?
- Execution: Can labor, materials, equipment and subcontractor costs be controlled if schedules slip?
- Funding and change orders: Are projects dependent on state or municipal budgets, and what happens if scope or pricing changes?
Fixed-price and unit-price work can produce attractive returns when estimates are accurate, but cost inflation, weather, delays and unfavorable change orders can reduce the economics of a backlog that looks large on paper. Backlog-to-revenue is useful only when paired with margin and conversion data.
Debt, dilution and cash conversion checks
The September 30, 2025 balance sheet shows why leverage belongs beside P/E. Long-term debt of $1.574 billion plus $38.5 million of current maturities, offset by $156.1 million of cash, represents a substantial claim ahead of common shareholders.
Review net debt/EBITDA, interest coverage, maturities and the cash required for equipment and working capital. Also monitor diluted shares outstanding. An acquisition can increase EBITDA while issuing stock that reduces each existing shareholder’s percentage ownership. Conversely, debt-funded growth can preserve ownership but raise refinancing and interest-rate risk.
Free-cash-flow conversion is the final reality check. Compare operating cash flow minus capital expenditures with net income and adjusted EBITDA over several periods. A company can report strong EBITDA while receivables, contract assets or inventory absorb cash.
A practical ROAD valuation workflow
- Set the date and denominator. Record the share price, market capitalization, enterprise value and whether earnings are trailing or forward. Do not mix a current price with an outdated estimate without labeling the mismatch.
- Reconcile EV. Start with market capitalization, add debt and current maturities, subtract cash, and investigate other adjustments used by the data provider.
- Calculate the core multiples. Use P/E, EV/EBITDA, EV/revenue, price/sales and price/book together rather than selecting the most favorable one.
- Normalize operations. Separate organic growth from acquisitions and check whether adjusted EBITDA exclusions are comparable with peers.
- Test the backlog. Estimate conversion timing, expected margins and sensitivity to cost, schedule and funding changes.
- Check balance-sheet risk. Review net debt/EBITDA, interest expense, maturities, dilution and capital expenditures.
- Build downside cases. Model slower organic growth, a margin decline, delayed projects or higher interest costs. A premium multiple is safer when the valuation still works under reasonable stress.
How to compare ROAD with peers without creating a false bargain
A useful peer table should contain forward P/E, EV/EBITDA, EV/revenue, organic revenue growth, adjusted EBITDA margin, net debt/EBITDA, backlog/revenue, return on invested capital and free-cash-flow conversion. Keep fiscal-year definitions consistent and identify differences in adjusted EBITDA.
Free tools Windows power users keep installed
One-click scans. No signup required.
| Metric | Question to ask | Why it matters |
|---|---|---|
| Forward P/E | What earnings growth is already priced in? | Shows the equity premium relative to expected profit |
| EV/EBITDA | Is the operating value high after including debt? | Improves leverage comparisons |
| EV/revenue | How much is paid for each revenue dollar? | Useful when margins differ or earnings are cyclical |
| Organic growth | How much expansion comes from existing operations? | Separates demand from acquisition arithmetic |
| Adjusted EBITDA margin | Does scale improve profitability? | Tests the quality of revenue growth |
| Net debt/EBITDA | How much operating profit supports borrowing? | Highlights refinancing and downside risk |
| Backlog/revenue | How visible is future work? | Useful only with conversion and margin data |
| Free-cash-flow conversion | Does accounting profit become cash? | Tests funding capacity and valuation durability |
A complete publication-date peer-consensus table and a single current forward-EPS estimate are not established by the figures above, so any investor should refresh those inputs before making a relative-value judgment.
When ROAD’s premium could be justified—and when it may not be
Conditions that can support a premium
- Organic revenue growth remains strong rather than relying mainly on acquisitions.
- EBITDA and operating margins hold or expand as revenue scales.
- Backlog converts on schedule at or above underwritten margins.
- Net debt grows more slowly than EBITDA and free cash flow funds capital needs.
- Acquisitions add earnings and cash flow without excessive dilution or goodwill risk.
Warning signs for multiple compression
- Forward estimates fall while the share price remains unchanged.
- Revenue growth is mostly acquired and integration costs rise.
- Backlog is delayed, repriced or completed at lower margins.
- Receivables and contract assets grow faster than sales, weakening cash conversion.
- Debt, interest expense or diluted shares increase faster than operating profit.
Bottom line for ROAD investors
ROAD’s approximate 36.68-times trailing P/E, 24.51-times forward P/E and 15.01-times EV/EBITDA indicate that investors are paying for continued growth, not merely current earnings. The $3.36 billion backlog and reported 35% quarterly revenue and adjusted-EBITDA growth provide evidence of momentum, while 11% organic growth shows that acquisitions are not the entire story. Yet the company’s debt makes enterprise value materially higher than market capitalization, and backlog still carries execution and margin risk. The most defensible valuation view comes from combining forward earnings with EV/EBITDA, organic growth, margin durability, net debt, dilution and free-cash-flow conversion—not from the share price or any single multiple.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
