Sterling Construction Company Inc (STRL) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Sterling Construction Company Inc stock $312, price $244, upside +27.7%, quality 64 out of 100. Rating: undervalued. Calculated from audited financials with 22 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 5, 2026.
How to read this chart
60‑month range $20.83 – $993.74 · fair‑value band $204.29 – $405.64 · the $244.34 price screens below the $312.03 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 5, 2026.
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Sterling Infrastructure, Inc. engages in the provision of e-infrastructure, transportation, and building solutions in the United States. It operates through three segments: E-Infrastructure, Transportation, and Building Solutions.
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The E-Infrastructure Solutions segment provides site development services for the blue-chip end users in the e-commerce distribution center, data center, manufacturing, warehousing, and power generation sectors.
Its Transportation Solutions segment is involved in the development of infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, rail, and storm drainage systems for the departments of transportation, regional transit, airport, port, water, and railroads authorities.
The Building Solutions segment offers residential and commercial concrete foundations for single-family and multi-family homes, parking structures, elevated slabs, and other concrete work for developers and general contractors, as well as plumbing and surveys services for residential builds.
It operates in the United States, primarily across the Southern, Northeastern, Mid-Atlantic and Rocky Mountain regions, and the Pacific Islands. The company was formerly known as Sterling Construction Company, Inc. and changed its name to Sterling Infrastructure, Inc. in June 2022.
Sterling Infrastructure, Inc. was founded in 1955 and is headquartered in The Woodlands, Texas.
Stock analysis
Sterling Construction Company Inc (STRL) currently trades at $244.34, while our model-based Fair Value estimate is $312.03, implying the stock looks roughly 22% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $242.76 per share, and 4 of the 22 models we run sit above the $244.34 price.
Bear case: the Economic Profit group reads lowest at $71.89, and 18 of the 22 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $204.29 (bear) to $405.64 (bull), the price of $244.34 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 64/100 (solid quality), in the Industrials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Sterling Construction Company Inc reported revenue of $2.5B in FY2025 versus $1.4B in FY2021, a compound +15.2%/yr. Reported net income was $290M in FY2025, compounding +46.7%/yr from FY2021.
Key figures
Market cap $7.8B Mid · P/E ratio 17.6 · P/S ratio 2.26 · EPS (TTM) $13.88 · Net margin 12.6% · Return on equity 40.0% · Return on assets (EBIT) 12.0% · Operating margin 20.1%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 70 out of 100 (medium confidence).
What moves the price
The share trades about 75% below its 52-week high and at its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −27% fair-value upside, at 28%, STRL screens cheaper than that median.
Fair Value models
Bear$204.29Fair Value $312.03Bull$405.64
Price $244.34 · Upside +27.7%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($11.79 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, one officer or director sold shares worth $2.2M and none bought.
SaleMark D. WolfGeneral Counsel, Corporate Sec2,500 shares at $888.00$2.2MJun 25, 2026
SaleJoseph A CutilloChief Executive Officer3× since Mar 9, 2026: 200,000 shares, avg. $443.83$88.8MApr 23, 202610b5-1 plan
SaleDwayne Andree WilsonDirector3× since Jan 16, 2026: 5,320 shares, avg. $377.32$2.0MMar 12, 202610b5-1 plan
SaleJulie DillDirector4,500 shares at $384.28$1.7MMar 9, 202610b5-1 plan
SaleDana C. O'BrienDirector4,000 shares at $402.50$1.6MFeb 9, 202610b5-1 plan
Plus 13 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+17.7%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+12.1%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+15.2%
Start year 2020 (pandemic). Over 10 years: +14.8% a year
Revenue growth 30 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+14.1%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+27.2%
Earnings growth per share plus dividend.
Earnings per share, growth per year+27.2%
Dividend (yield on the price)0.0%
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.8% → 17%
Growth Forecast
Little optimism in the price
The price assumes about as much growth as the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+13.8%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+26.4%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +11.2% a year for the price and +23.4% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (99 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: Strong revenue growth from data-center and semiconductor work stands out as the key strength, while pressure on profitability from the expanding lower-margin electrical segment and capacity limits represent the main weakness.
Main risk: The loss of one or more of its limited number of significant data center and hyperscaler customers could materially reduce revenues and backlog in the E-Infrastructure segment that now drives the vast majority of business.
Bull case: The company could deepen integrated civil-electrical offerings, win repeat multi-year contracts from existing hyperscalers and add capacity through acquisitions to broaden its role and sustain growth if customer spending fluctuates.
Bear case: If hyperscale customers slow or redirect capital spending amid shifting AI priorities or financing constraints, the concentrated exposure could lead to lower volumes, underutilized capacity and pressure on margins in the core E-Infrastructure operations.
Strong revenue growth from data center and semiconductor work continues, yet faster expansion of the lower-margin electrical segment pressures overall profitability and working capital needs while signed backlog burned faster than replenished last quarter. Capacity limits add execution questions for the multi-year pipeline. Will the business sustain its margins as the mix shifts, or will scaling challenges cap the growth?
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Engineering & Construction · 789 stocks
Beats the industry median on 8/13 measures
Overall it ranks above its industry peers.
Valuation
Quality Score64 · Top 25%
Fair Value upside+27.7% · Above median
Profitability
Return on equity (12 months)40.0% · Top 25%
Return on assets11.0% · Top 25%
Net margin (12 months)12.6% · Top 25%
Operating margin (12 months)20.1% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)90.1% · Top 25%
Balance sheet
Debt / equity0.25× · Above median
Valuation Multiplesvs Engineering & Construction median · lower = cheaper
P/E (12 months)17.6× · Pricier than median
P/B7.02× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Sterling Construction Company Inc Fair Value". https://www.fairvalue-calculator.com/stock/STRL
Frequently asked questions
Is Sterling Construction Company Inc (STRL) overvalued or undervalued?
As of Nov 5, 2026, our model estimates a fair value of $312.03 versus a price of $244.34, about +28% upside (undervalued).
What is the fair value of STRL?
Our model-based fair value for Sterling Construction Company Inc is $312.03 (as of Nov 5, 2026), built from audited fundamentals. The current price: $244.34.
What is the quality score of STRL?
Sterling Construction Company Inc has a Quality Score of 64/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Sterling Construction Company Inc (STRL)?
Our model-based price target is the fair value of $312.03 (as of Nov 5, 2026) from 22 valuation models. Cautious scenario $204.29, optimistic scenario $405.64. It is a calculation from audited fundamentals, not an analyst target.
What is the Sterling Construction Company Inc stock forecast for 2026?
Our models put fair value at $312.03, about +28% upside versus a price of $244.34 (undervalued). Cautious scenario $204.29, optimistic scenario $405.64. The calculation is refreshed regularly with new filings.
What is the revenue of Sterling Construction Company Inc (STRL)?
Sterling Construction Company Inc reported trailing-twelve-month revenue of about $3.4B (latest available figure, as of Nov 5, 2026).
What growth is priced into Sterling Construction Company Inc (STRL)?
For today's price to be fair in a discounted-cash-flow model, Sterling Construction Company Inc would have to grow free cash flow by +13.8 % per year for five years (discount rate 11.2 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +15.2 % per year. As of Nov 5, 2026.
What discount rate (WACC) does the fair value of STRL use?
Our models discount Sterling Construction Company Inc at 11.2 %: a base by market capitalisation (large), damped by beta 1.86, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Sterling Construction Company Inc that is +13.8 % per year a year over ten years, using the same discount rate (11.2 %) and the same formula as our fair value.
How much growth has Sterling Construction Company Inc (STRL) delivered so far?
Over the past 5 years revenue at Sterling Construction Company Inc grew +15.2 % a year. The price currently implies +13.8 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Sterling Construction Company Inc (STRL) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Sterling Construction Company Inc (+13.8 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Sterling Construction Company Inc (STRL)?
The free-cash-flow yield on the price is 4.77 %: that much free cash flow Sterling Construction Company Inc produces per unit of market value. When it exceeds the discount rate of our models (11.2 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Sterling Construction Company Inc (STRL)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Sterling Construction Company Inc it is $312.03 per share (as of Nov 5, 2026), against a price of $244.34. It is the blended result of 22 valuation models (cash flow, earnings, asset, dividend).
Is Sterling Construction Company Inc stock overvalued or undervalued in 2026?
As of Nov 5, 2026, STRL trades below its calculated fair value: price $244.34, fair value $312.03, a gap of about +28% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of STRL?
No. The price is what the market pays today ($244.34); the fair value is what the company's own numbers justify ($312.03). For Sterling Construction Company Inc the two are $67.69 per share apart. That gap is exactly why we show both numbers side by side.
How much is Sterling Construction Company Inc worth?
The market values Sterling Construction Company Inc at about $7.8B (market capitalisation, as of Nov 5, 2026). Per share that is $244.34; our models calculate a fair value of $312.03 per share.
What do the bullish and bearish scenarios say about STRL?
Our models span a range for Sterling Construction Company Inc: cautious scenario $204.29, base $312.03, optimistic $405.64 per share (as of Nov 5, 2026, price $244.34). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of STRL?
Sterling Construction Company Inc trades at a price-to-earnings ratio of 17.6 (as of Nov 5, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $312.03 is built from several models across several years. Median P/E at fiscal year-end, 9 fiscal years (2017 to 2025), earnings ex one-offs: 12.2. Other multiples: PEG 0.5, P/B 7.0, P/S 2.3, EV/EBITDA 10.7.
What is the PEG ratio of STRL?
The PEG ratio of Sterling Construction Company Inc is 0.45 (P/E divided by earnings growth, as of Nov 5, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Sterling Construction Company Inc (STRL)?
Balance-sheet figures for Sterling Construction Company Inc (as of Nov 5, 2026): return on equity 40.0%, debt of 0.25 per unit of equity. They feed the Quality Score of 64/100, which measures business quality independently of the share price.
How far is STRL from its 52-week high?
Sterling Construction Company Inc trades at $244.34, about 75% below its 52-week high of $993.74 and at the low of $244.34 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $312.03 is for.
Which stocks are comparable to Sterling Construction Company Inc?
From the same area (Industrials) we also value Quanta Services, Inc, Vinci SA, Larsen & Toubro Limited, Comfort Systems USA, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Sterling Construction Company Inc stock attractive at the current price?
The data as of Nov 5, 2026: price $244.34, calculated fair value $312.03 (+28%), Quality Score 64/100, from 22 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of STRL calculated?
We run Sterling Construction Company Inc through 22 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $312.03, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Sterling Construction Company Inc currently trades 22% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Sterling Construction Company Inc (STRL)?
The closing price on Nov 5, 2026 was $244.34. Our model-based fair value is $312.03, about +28% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Sterling Construction Company Inc right now?
Solid quality (64/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range ($204.29 to $405.64) leaves room in how you read the outcome.
Key figures of Sterling Construction Company Inc
How large is the market capitalisation of Sterling Construction Company Inc (STRL)?
The market capitalisation of Sterling Construction Company Inc is $7.8B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Sterling Construction Company Inc (STRL)?
The price-to-sales ratio of Sterling Construction Company Inc is 2.26 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Sterling Construction Company Inc (STRL)?
Earnings per share at Sterling Construction Company Inc are $13.88 (price ÷ EPS = P/E 17.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Sterling Construction Company Inc (STRL)?
The net margin of Sterling Construction Company Inc is 12.6% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Sterling Construction Company Inc (STRL)?
The return on equity (ROE) of Sterling Construction Company Inc is 40.0% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Sterling Construction Company Inc (STRL)?
On an EBIT basis the return on assets of Sterling Construction Company Inc is 12.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Sterling Construction Company Inc (STRL)?
The operating margin of Sterling Construction Company Inc is 20.1% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Sterling Construction Company Inc (STRL)?
Revenue at Sterling Construction Company Inc is growing +90.1% versus a year earlier (3y avg +12.1%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Sterling Construction Company Inc (STRL)?
Earnings per share at Sterling Construction Company Inc are growing +117% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Sterling Construction Company Inc (STRL) hold?
Sterling Construction Company Inc holds more cash than debt, $40.8M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Nov 5, 2026