Heavy Construction Other Than Bldg Const - Contractors · SIC 1600

GRANITE CONSTRUCTION INC

GVA

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Latest revenue

$912.5M

as of 2026-03-31

Latest net income

$-41.7M

as of 2026-03-31

Net margin

-4.6%

as of 2026-03-31

Community sentiment

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GVA vs S&P 500 · rebased to 100

+28.9% / yr 9.2 pts / yr vs S&P 500(S&P 500 +19.7% / yr) 254.1% total
Compare:

Live market

delayed ≤15 min
$140.07
0.16%
Market cap
$6.13B
Enterprise value
$7.10B
P/E (trailing)
31.7×
Forward P/E
P/B
5.94×
Dividend yield
0.4%
52-wk high
52-wk low
Beta
Shares out
43.7M

What this company does

AI

Item 1. BUSINESS Introduction Granite Construction Company was incorporated in 1922. In 1990, Granite Construction Incorporated was formed as the holding company for Granite Construction Company and its wholly-owned and consolidated subsidiaries and was incorporated in Delaware. Unless otherwise indicated, the terms “we,” “us,” “our,” “Company” and “Granite” refer to Granite Construction Incorporated and its wholly-owned and consolidated subsidiaries. We deliver infrastructure solutions for public and private clients primarily in the United States. We are one of the largest diversified, vertically integrated civil contractors and construction materials producers in the United States. Within…

AI summary unavailable — showing raw filing excerpt

Generated from GVA's filing dated 2026-02-13

Key risks

AI

Item 1A. RISK FACTORS Set forth below and elsewhere in this report and in other documents we file with the SEC are various risks and uncertainties that could cause our actual results to differ materially from the results contemplated by the forward-looking statements contained in this report or otherwise adversely affect our business. RISKS RELATED TO OUR BUSINESS •Unfavorable economic conditions may have an adverse impact on our business. Volatility in the global financial system, deterioration in general economic activity, inflation, rising or high interest rates, tariffs, supply chain issues, wars or other geopolitical tensions, other political, social or economic uncertainties, and…

AI summary unavailable — showing raw filing excerpt

Generated from GVA's filing dated 2026-02-13

7.5
of 10

ActaClear Score

Above avg
#1 of 12 in Heavy Construction Other Than Bldg Const - Contractors
+0.0 · 5d
Profitability·25%
7.3
Growth·15%
6.4
Value·20%
7.0
Quality·20%
6.4
Momentum·20%
10.0

Computed from 5 years of SEC fundamentals + latest market data, ranked within Heavy Construction Other Than Bldg Const - Contractors (12 peers). 10 = best in industry, 5 = median, 0 = worst. Refreshed Jun 10, 2026.

2.05
Price / FV

Fair value · DCF

Deeply overvalued
~51% downside at this growth
4.4% / yr
-5%30%
Terminal growthWACC 9.1% · 10y forecast
Market-implied growth at today's price: 13.0% / yrfor 10 years, holding WACC 9.1% and terminal 2.5%.
Current price
$141
DCF fair value
$69.10
FCF base (last FY)
$193.00M
Net debt
$434.01M
Methodology + caveats (click to expand)

Method. 10-year forecast of free cash flow, discounted at the company's WACC, with a Gordon-growth terminal at year 10. FCF is proxied by last fiscal-year net income (proper FCF needs CFO − CapEx by year, which we don't store yet). Beta defaults to 1.0 when not reported.

Why DCF is fragile. Treat the output as a thinking aid, not a verdict. Honest weaknesses of any DCF:

  • Growth is the dominant assumption. No one can foresee 10 years of growth — small changes in the slider can double or halve fair value. The reverse-DCF readout above tells you what the market is implicitly assuming; ask yourself whether that's realistic before trusting either number.
  • Terminal value dominates. In most DCFs, 60-80% of the answer comes from the terminal-value calculation — i.e., everything AFTER year 10. A 0.5pp change in terminal growth, or in WACC, can swing fair value by 20-30%.
  • WACC is itself a guess. We use a textbook CAPM cost of equity (Rf 4.3%, MRP 5.5%, β from the quote) plus a 6% pretax cost of debt — none of these are the company's actual marginal financing cost.
  • No moat / disruption modelling. The model assumes the company keeps earning whatever it earns today, compounding cleanly. Competitive shifts, regulatory action, and technology disruption can invalidate the forecast overnight.
  • Net income ≠ free cash flow. For capex-heavy names (semis, telcos) net income overstates distributable cash. For low-capex names (software) it understates. Both reduce the precision of the FV figure.
  • Reflexivity. A high stock price often becomes a self-fulfilling prophecy via better hiring, financing, and customer trust. DCF can't see this.

Take the DCF, the reverse-DCF implied growth, the historical multiples, and the community sentiment together. When they agree, conviction. When they disagree, the disagreement is the most informative thing on the page.

Historical multiples

How does GVA's current valuation compare to its own past?

Current P/E
31.7×
Own 5y average
31.8×
Own 5y median
29.0×
vs. own average
-0%
Industry 5y avg P/E
28.7×
Median P/E across the top 10 peers in Heavy Construction Other Than Bldg Const - Contractors by market cap, then averaged across 6 years.
vs. industry
+11%
PEG (this co.)
7.17
5y revenue CAGR
4.4%
Industry PEG
7.98
Industry 5y avg growth
3.6%
Solid: this company. Dotted: industry median.
Dashed flat: own 5y avg.
Coloured dot at right: current P/E.

P/E uses year-end weekly close ÷ (net income ÷ shares outstanding today). Held shares constant at today's count, which understates the per-share earnings improvement from buybacks over the period. PEG uses 5y revenue CAGR as a proxy for EPS growth — close, but not identical (margin expansion or dilution can drive a wedge). Best read as a comparator across companies and industries, not as a precise replica of historical multiples.