Vulcan Materials Company (VMC) Fair Value & PE Analysis
Construction Materials · NYSE
Current Price
$244.13
PE Ratio (TTM)
28.7x
Intrinsic Value
$275.13
+11.3% margin of safety
What Is Vulcan Materials Company's Fair Value?
As of 2026-10-07, applying a 28.4x earnings multiple to Vulcan Materials Company's (VMC) earnings per share of $8.6 yields a fair value estimate of $275.13 per share, versus a market price of $244.13.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $229.79 to $326.67. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · VMC intrinsic value (DCF view)
Is Vulcan Materials Company (VMC) Overvalued?
At $244.13, VMC trades about 11.3% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough to call it cheap outright.
COMPETITIVE MOAT
↑Dominant U.S. Market Position
Vulcan Materials holds a leading position in the U.S. aggregates market. This scale provides significant cost advantages and market influence.
↑High Capital Intensity Barriers
The significant investment required to establish new quarries and processing facilities creates a substantial barrier to entry for competitors. This protects existing market share.
↑Infrastructure Focus & Demand
As a key supplier to infrastructure projects, Vulcan benefits from consistent demand driven by government spending and essential construction needs. This provides revenue stability.
INVESTMENT RISKS
↓Cyclicality of Construction Demand
The construction industry is inherently cyclical and tied to economic conditions. Downturns can significantly impact demand for Vulcan's products.
↓Transportation Cost Volatility
The cost of transporting aggregates is a significant factor. Fluctuations in fuel prices and freight availability can impact profitability.
↓Environmental and ESG Scrutiny
Increased focus on environmental, social, and governance factors can lead to stricter regulations and operational challenges for mining companies.
Base case
VMC base case PE valuation
Intrinsic Value
$275.13
Margin of safety
+11.3%
Expected annual return
+2.4%
Base case assumptions: 9.0% annual earnings growth, 28.39x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-07.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the VMC PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Vulcan Materials Company respond.
Open PE Calculator for VMCCompany Overview
Vulcan Materials Company, alongside its affiliated entities, stands as a prominent producer and distributor of construction aggregates, primarily operating within the United States. The company's activities are organized into four distinct divisions: Aggregates, Asphalt, Concrete, and Calcium. The Aggregates division focuses on providing essential materials like crushed stone, sand, gravel, and other foundational aggregates, along with related services. These products are vital for building and maintaining highways, public infrastructure, residential properties, and various commercial, industrial, and other non-residential structures. Through its Asphalt Mix segment, the firm furnishes asphalt mixture to locations in Alabama, Arizona, California, New Mexico, Tennessee, and Texas, additionally performing asphalt paving work in Alabama, Tennessee, and Texas. The Concrete segment supplies ready-mixed concrete to customers in California, Maryland, New Jersey, New York, Oklahoma, Pennsylvania, Texas, Virginia, and Washington D.C. Lastly, the Calcium division is responsible for mining, manufacturing, and marketing calcium products for use in animal feed, plastics, and water treatment industries. Established in 1909, the corporation, initially known as Virginia Holdco, Inc. before its name change, is headquartered in Birmingham, Alabama.
Financial Metrics — VMC PE Stock Valuation Data
PE Ratio (TTM)
28.7x
PEG Ratio
1.58
Earnings Yield
3.52%
ROE (TTM)
13.1%
Revenue/Share (TTM)
$62.27
Dividend Yield
0.84%
Debt/Equity
0.58x
Frequently Asked Questions
What is the PE ratio of VMC?
The trailing twelve-month PE ratio of VMC reflects how much investors pay per dollar of Vulcan Materials Company's earnings. This metric is most useful when compared to Construction Materials peers and the company's own historical range.
Is VMC overvalued based on PE ratio?
VMC's PE of 28.7x combined with a PEG ratio of 1.58 provides a growth-adjusted perspective. A PEG near 1.0 means the P/E is roughly in line with the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Construction Materials, a DCF analysis may be more appropriate.
How do I value VMC stock using PE ratio?
To value Vulcan Materials Company using PE: (1) Compare the current PE (28.7x) against the Construction Materials median to assess relative pricing, (2) check the PEG ratio (1.58) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of VMC?
VMC's PEG ratio is 1.58, calculated by dividing the PE ratio (28.7x) by the expected earnings growth rate. A PEG near 1.0 means the P/E is roughly in line with the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for VMC stock valuation?
PE ratio gives a quick relative read — how VMC is priced versus Construction Materials peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See VMC DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Basic Materials valuationsP/E and DCF value VMC with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-07. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.