Fletcher Building Ltd (FBU) fair value: what the stock is really worth
As of Oct 29, 2026: fair value (intrinsic value) of Fletcher Building Ltd stock A$2.93, price A$2.70, upside +8.5%, quality 43 out of 100. Rating: fairly valued. Calculated from audited financials with 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 Oct 28, 2026.
How to read this chart
60‑month range A$2.26 – A$6.38 · fair‑value band A$2.19 – A$3.76 · the A$2.70 price screens below the A$2.93 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Oct 28, 2026.
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Fletcher Building Limited, together with its subsidiaries, manufactures and distributes building products in New Zealand, Australia, and internationally. It operates through Building Products, Distribution, Concrete, Australia, Residential and Development, and Construction segments.
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The company manufactures, distributes, and markets light building products, including insulations, plasterboards, steel products, laminate surfaces, plastic and concrete piping, sinks, and drywall systems used in the residential, industrial, and commercial markets; and distributes building and plumbing products, as well as bathroom products, such as piping, valves, baths, and vanities under the PlaceMakers and Mico brands.
It also engages in the extraction and production of aggregates; manufacture of cement, ready-mix concrete, and concrete products, as well as purlin and flooring products; bulk transportation solutions; supply and hire of road systems and safety products, including road safety barriers, lighting and utility columns, poles, and corrugated metal structures; and supply of roofing, cladding, architectural tray, solar roofing products, wires, and steel products.
In addition, the company builds and sells residential homes and apartment buildings; develops and sells commercial and residential land; manages retirement village assets; and sells land properties.
Further, it provides civil construction; ground engineering; and treatment, storage, and distribution of infrastructure projects, as well as rehabilitation of existing pipelines; piling solutions; construction and maintenance services for roads; residential developments, airports, ports, and windfarms; and supply of asphalt and bitumen products under the Fletcher Construction, Higgins, and Brian Perry Civil brands.
Fletcher Building Limited was founded in 1909 and is headquartered in Auckland, New Zealand.
Stock analysis
Fletcher Building Ltd (FBU) currently trades at A$2.70, while our model-based Fair Value estimate is A$2.93, so the stock looks roughly fairly valued today (gap 7.8%).
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Valuation
Bull case: the Growth DCF group reads highest at a median of A$3.83 per share, and 15 of the 24 models we run sit above the A$2.70 price.
Bear case: the Earnings-Based group reads lowest at A$1.41, and 9 of the 24 models stay below the price. Data coverage for this calculation is high.
Scenario range: A$2.19 (bear) to A$3.76 (bull), the price of A$2.70 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 43/100 (below-average quality), in the Basic Materials sector.
Mixed Growth: Spin-off in 2026: revenue and profit before it include the divested business. Growth is measured afresh from 2026.
Fletcher Building Ltd reported revenue of 6.0B NZD in FY2026 versus 8.5B NZD in FY2022, a compound −8.4%/yr. Reported net income was 228M NZD in FY2026, compounding −14.8%/yr from FY2022.
Key figures
Market cap A$2.9B (≈ $2.1B) Mid · P/E ratio 16.9 · P/S ratio 0.62 · EPS (TTM) A$0.1600 · Dividend yield 0.6% · Net margin 3.8% · Return on equity 5.5% · Return on assets (EBIT) 5.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 31 out of 100 (medium confidence).
What moves the price
The share trades about 21% below its 52-week high and 19% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Basic Materials peers we cover trades at −48% fair-value upside, at 9%, FBU screens cheaper than that median.
Fair Value models
BearA$2.19Fair Value A$2.93BullA$3.76
Price A$2.70 · Upside +8.5%
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 2026 figures (about 4 months old). Earnings retained since then (A$0.0530 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.
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.55/100
Spin-off in 2026: revenue and profit before it include the divested business. Growth is measured afresh from 2026.
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.
−6.3%
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.
−0.9%
Start year 2020 (pandemic). Over 10 years: −2.1% a year
Revenue growth 25 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.
+4.4%
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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.
−12.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year−13.1%
Dividend (yield on the price)0.6%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−13.1% vs −5.9%, slowing
Profit margin 2021 to 2026 ⓘ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% → 7%
Pace: the 5-year rate starts in 2021 (pandemic)
⚠ Revenue per share shrinking 5.6%/yr over ~10Y (margins eroding too) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Growth Forecast
Little optimism in the price
The price assumes more growth than 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).
−2.5%
The company could shrink this much every year for the next five years and today's price would still be justified.
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.
+4.6%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in NZD, New Zealand: IMF forecast 2.3% a year to 2030, 3.0% from 2016 to 2025) that is about −4.7% a year for the price and +2.3% for the forecasts.
Price, fair value, quality and upside side by side.
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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.Building Materials · 254 stocks
Beats the industry median on 9/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score43 · Below median
Fair Value upside+8.5% · Above median
Profitability
Return on equity (12 months)5.5% · Above median
Return on assets3.1% · Above median
Net margin (12 months)3.8% · Below median
Operating margin (12 months)8.6% · Above median
Growth and dividend
Revenue growth (quarter YoY)0.5% · Below median
Dividend yield (12 months)0.6% · Bottom 25%
Balance sheet
Debt / equity0.18× · Above median
Valuation Multiplesvs Building Materials median · lower = cheaper
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). "Fletcher Building Ltd Fair Value". https://www.fairvalue-calculator.com/stock/FBU
Frequently asked questions
Is Fletcher Building Ltd (FBU) overvalued or undervalued?
As of Oct 28, 2026, our model estimates a fair value of A$2.93 versus a price of A$2.70, about +9% upside (fairly valued).
What is the fair value of FBU?
Our model-based fair value for Fletcher Building Ltd is A$2.93 (as of Oct 28, 2026), built from audited fundamentals. The current price: A$2.70.
What is the quality score of FBU?
Fletcher Building Ltd has a Quality Score of 43/100. 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 Fletcher Building Ltd (FBU)?
Our model-based price target is the fair value of A$2.93 (as of Oct 28, 2026) from 24 valuation models. Cautious scenario A$2.19, optimistic scenario A$3.76. It is a calculation from audited fundamentals, not an analyst target.
What is the Fletcher Building Ltd stock forecast for 2026?
Our models put fair value at A$2.93, about +9% upside versus a price of A$2.70 (fairly valued). Cautious scenario A$2.19, optimistic scenario A$3.76. The calculation is refreshed regularly with new filings.
What is the revenue of Fletcher Building Ltd (FBU)?
Fletcher Building Ltd reported trailing-twelve-month revenue of about 6.0B NZD (latest available figure, as of Oct 28, 2026).
Does Fletcher Building Ltd pay a dividend?
Fletcher Building Ltd currently shows a dividend yield of 0.59% relative to its recent price (as of Oct 28, 2026).
What growth is priced into Fletcher Building Ltd (FBU)?
For today's price to be fair in a discounted-cash-flow model, Fletcher Building Ltd would have to grow free cash flow by -2.5 % per year for five years (discount rate 10.1 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew -5.9 % per year. As of Oct 28, 2026.
What discount rate (WACC) does the fair value of FBU use?
Our models discount Fletcher Building Ltd at 10.1 %: a base by market capitalisation (small), damped by beta 0.68, country premium for Australia. 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 Fletcher Building Ltd that is -2.5 % per year a year over ten years, using the same discount rate (10.1 %) and the same formula as our fair value.
How much growth has Fletcher Building Ltd (FBU) delivered so far?
Over the past 5 years revenue at Fletcher Building Ltd grew -5.9 % a year. The price currently implies -2.5 % 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 Fletcher Building Ltd (FBU) growing?
The median revenue growth in the sector is +9.5 % a year. That is the yardstick for the growth priced into Fletcher Building Ltd (-2.5 % 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 Fletcher Building Ltd (FBU)?
The free-cash-flow yield on the price is 11.96 %: that much free cash flow Fletcher Building Ltd produces per unit of market value. When it exceeds the discount rate of our models (10.1 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Fletcher Building Ltd (FBU)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Fletcher Building Ltd it is A$2.93 per share (as of Oct 28, 2026), against a price of A$2.70. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Fletcher Building Ltd stock overvalued or undervalued in 2026?
As of Oct 28, 2026, FBU trades below its calculated fair value: price A$2.70, fair value A$2.93, a gap of about +9% (fairly valued). 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 FBU?
No. The price is what the market pays today (A$2.70); the fair value is what the company's own numbers justify (A$2.93). For Fletcher Building Ltd the two are A$0.2300 per share apart. That gap is exactly why we show both numbers side by side.
How much is Fletcher Building Ltd worth?
The market values Fletcher Building Ltd at about A$2.9B (market capitalisation, as of Oct 28, 2026). Per share that is A$2.70; our models calculate a fair value of A$2.93 per share.
What do the bullish and bearish scenarios say about FBU?
Our models span a range for Fletcher Building Ltd: cautious scenario A$2.19, base A$2.93, optimistic A$3.76 per share (as of Oct 28, 2026, price A$2.70). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of FBU?
Fletcher Building Ltd trades at a price-to-earnings ratio of 16.9 (as of Oct 28, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of A$2.93 is built from several models across several years. Other multiples: PEG 6.0, P/B 0.9, P/S 0.6, EV/EBITDA 7.7.
What is the PEG ratio of FBU?
The PEG ratio of Fletcher Building Ltd is 5.96 (P/E divided by earnings growth, as of Oct 28, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Fletcher Building Ltd (FBU)?
Balance-sheet figures for Fletcher Building Ltd (as of Oct 28, 2026): return on equity 5.5%, debt of 0.18 per unit of equity. They feed the Quality Score of 43/100, which measures business quality independently of the share price.
How far is FBU from its 52-week high?
Fletcher Building Ltd trades at A$2.70, about 21% below its 52-week high of A$3.40 and 19% above the low of A$2.26 (as of Oct 29, 2026). Distance from the high says nothing about value: that is what the fair value of A$2.93 is for.
Which stocks are comparable to Fletcher Building Ltd?
From the same area (Basic Materials) we also value CRH plc, Holcim AG, Martin Marietta Materials, Inc, Vulcan Materials Company, 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 Fletcher Building Ltd stock attractive at the current price?
The data as of Oct 28, 2026: price A$2.70, calculated fair value A$2.93 (+9%), Quality Score 43/100, from 24 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 FBU calculated?
We run Fletcher Building Ltd through 24 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 A$2.93, 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 13.4 % above its aggregate fair value. Fletcher Building Ltd currently trades 8 % 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 Fletcher Building Ltd (FBU)?
The closing price on Oct 29, 2026 was A$2.70. Our model-based fair value is A$2.93, about +9% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Fletcher Building Ltd right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. The price sits in the lower half of our model range, the side with the larger margin of safety. The data supports the verdict: every model runs on fully documented inputs.
Key figures of Fletcher Building Ltd
How large is the market capitalisation of Fletcher Building Ltd (FBU)?
The market capitalisation of Fletcher Building Ltd is A$2.9B (≈ $2.1B). 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 Fletcher Building Ltd (FBU)?
The price-to-sales ratio of Fletcher Building Ltd is 0.62 (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 Fletcher Building Ltd (FBU)?
Earnings per share at Fletcher Building Ltd are A$0.1600 (price ÷ EPS = P/E 16.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Fletcher Building Ltd (FBU)?
The dividend yield of Fletcher Building Ltd is 0.6% (payout 10.0%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Fletcher Building Ltd (FBU)?
The net margin of Fletcher Building Ltd is 3.8% (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 Fletcher Building Ltd (FBU)?
The return on equity (ROE) of Fletcher Building Ltd is 5.5% (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 Fletcher Building Ltd (FBU)?
On an EBIT basis the return on assets of Fletcher Building Ltd is 5.5% (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 Fletcher Building Ltd (FBU)?
The operating margin of Fletcher Building Ltd is 8.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Fletcher Building Ltd (FBU)?
Revenue at Fletcher Building Ltd is growing +0.5% versus a year earlier (3y avg −7.9%). 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 Fletcher Building Ltd (FBU)?
Earnings per share at Fletcher Building Ltd are growing −42.0% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Fletcher Building Ltd (FBU) carry?
The net debt of Fletcher Building Ltd is 1.9B NZD (fiscal year 2026, ≈ 4.3 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Oct 28, 2026