[EUROPE // RESEARCH]
EQUITY RESEARCH[EU]
Ferrovial: valuation multiples demand a closer look at underlying free cash flow
The trailing P/E of 64.82x and EV/EBITDA of 30.51x assigned by the market reflect aggressive growth assumptions. However, a granular examination of cash conversion shows that the 889.63 million euro free cash flow requires scrutiny against the 10.4% EBIT margin and capital quality.
KEY TAKEAWAYS
- Ferrovial trades at 53.80 euros with a market capitalization of 38.78 billion euros.
- The P/E ratio reaches 64.82x and EV/EBITDA stands at 30.51x, reflecting high growth expectations.
- Free cash flow is reported at 889.63 million euros alongside a 10.4% EBIT margin.
- ROE is registered at 11.6%, while ROIC remains officially N/D.
