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Forterra plc (FORT) Fair Value & Analysis

Basic Materials · GB · Market cap 279M GBX

FP Forterra plc FORT · LSE
Price£1.36
Fair Value£1.74
Upside+27.4%
Quality70/100
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Healthy Growth
Thin margins · 4.4% net margin
Low debt · generates free cash flow
4.63% dividend yield
Ranks above peers (9/15)
Narrow moat 44/100
Evidence: High Range £1.31 – £2.18 Share as image

Fair value as of: Jul 15, 2026

From 26 valuation models · updated 26 days ago

Fair value updated Jul 15, 2026, revised from £2.20 to £1.74 (−21.0%) since Jun 24, 2026. Share price +9.7% over the past month.

A solid business, screening 27% undervalued on our models.

What matters now

  • The rarer combination: high quality (70/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • Our model range runs from £1.31 (bear) to £2.18 (bull), base £1.74. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 70/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

£2.42 £1.08 Fair Value £1.74 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 15, 2026.

How to read this chart

60‑month range £1.08 – £2.42 · fair‑value band £1.31 – £2.18 · the £1.36 price screens below the £1.74 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 15, 2026.

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Analysis

Forterra plc (FORT) currently trades at £1.36, while our model-based Fair Value estimate is £1.74, implying the stock looks roughly 27.4% undervalued today. The Quality Score stands at 70/100 (solid quality), in the Basic Materials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Forterra plc generated revenue of £386M at a net margin of 4.4%. Revenue grew 4.8% year over year. It earns a return on equity of 7.4%. Net debt stands at £75.4M. Fundamentals as of Jul 15, 2026

Our scenario range runs from £1.31 (bear case) to £2.18 (bull case); at £1.36, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Basic Materials peers we cover trades at -59% fair-value upside, at 27%, FORT screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model 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. Evidence
Highest evidence
Growth DCF £1.46 £1.98 £2.56 80
Residual Income £0.8500 £0.8600 £0.8300 76
Rev-Margin DCF £1.45 £2.33 £3.30 74
All 26 models by family
DCF Models
FCF DCF £1.45 £2.03 £2.72 38
Owner Earnings £0.6000 £0.8900 £1.24 31
5Y Revenue Exit £1.45 £2.31 £3.36 39
5Y EBITDA Exit £1.58 £2.54 £3.62 41
5Y P/E Exit £1.01 £1.50 £1.99 38
10Y Revenue Exit £1.39 £2.08 £2.95 36
10Y EBITDA Exit £1.50 £2.22 £3.11 37
10Y P/E Exit £1.19 £1.61 £2.08 35
Earnings-Based
Graham-Dodd £0.5700 £1.51 £1.97 54
Lynch FV £0.2900 £0.4200 £0.5400 50
PEG = 1.0 £0.2900 £0.4200 £0.5400 46
EPV £0.9600 £1.10 £1.22 59
Dividend Discount
Gordon GGM £0.2800 £0.4700 £0.6100 70
DDM Multi-Stage £0.2800 £0.4000 £0.4900 61
Multiples
P/E Multiple £1.06 £1.41 £1.77 63
P/S Multiple £1.06 £1.41 £1.77 58
P/B Multiple £1.06 £1.41 £1.77 55
EV/EBIT £1.86 £2.57 £3.27 53
EV/EBITDA £1.97 £2.71 £3.46 54
EV/Revenue £1.57 £2.36 £3.15 43
Asset-Based
NCAV (Graham) £0.5700 £0.7700 £1.15 50
Growth DCF
Growth DCF £1.46 £1.98 £2.56 80
Rev-Margin DCF £1.45 £2.33 £3.30 74
Economic Profit
Residual Income £0.8500 £0.8600 £0.8300 76
ROIC Compounder £0.9600 £1.10 £1.26 72
Growth Earnings
Growth-Adj P/E £0.8500 £1.22 £1.58 68

Widest divergence: DCF Models (£2.03) versus Dividend Discount (£0.4000). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 386M GBX
Revenue growth (YoY) +4.8%
Net margin 4.4%
Return on equity 7.4%
Free cash flow 43.8M GBX FY2025
P/E ratio 17.1
More key figures
Operating margin 11.9%
EPS (TTM) £0.0800
Dividend yield 4.6%
EPS growth (YoY) +15.0%
Net debt 75.4M GBX FY2025

Figures from reported company fundamentals · as of Jul 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 70/100

Of which business quality 67 · Market factors (momentum, volatility) 36

Profitability 45
Margins and returns on capital today
Quality Growth 68
Are margins and returns improving?
Cashflow 70
Earnings quality: real cash, not paper profit
Fin. Strength 64
Balance sheet, leverage, solvency risk
Investment 91
Disciplined investing over empire-building
Low Volatility 77
Calm price path (market factor)
Momentum 21
Price trend over the last 3–12 months (market factor)
52W Momentum 16
Distance to the 52-week high (market factor)
Net Issuance 85
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Forterra plc, together with its subsidiaries, provides building products made from clay and concrete for the construction sector in the United Kingdom. It operates through Bricks and Blocks; and Bespoke Products segments.

Full company description

Forterra plc, together with its subsidiaries, provides building products made from clay and concrete for the construction sector in the United Kingdom. It operates through Bricks and Blocks; and Bespoke Products segments. The company offers fletton, extruded wirecut, soft mud, semi-dry pressed, and special shaped bricks; aircrete and aggregate blocks; façade systems, such as lightweight and brick slip cladding systems, prefabricated walling systems, and retained brick slip systems; precast concrete products, such as Jetfloor insulated ground floors, hollowcore and solid floors, beam and block floors, stairs and landings, and diesel transfer slabs; box culverts, bridge decks and retaining walls for infrastructure, crosswall frames, stadia components, and columns and beams for structural projects; chimney pots, clay ridge tiles, finials, gas flue terminals, and flue systems; and permeable block pavings. It sells its products under the London Brick, Butterley, Ecostock, Cradley, Omnia, Conbloc, Thermalite, Bison Precast, and Red Bank brands. The company was formerly known as Starzone plc and changed its name to Forterra plc in March 2016. Forterra plc was incorporated in 2016 and is headquartered in Northampton, the United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Forterra plc reported revenue of £386M in FY2025 versus £370M in FY2021, a compound +1.0%/yr. Reported net income was £17.0M in FY2025, compounding −21.8%/yr from FY2021.

Growth Quality 70/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
£386M
Latest YoY
+12.1%
Avg. growth/yr (3Y) 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.
−5.4%
Avg. growth/yr (5Y) 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.
+5.7%
Avg. growth/yr (12Y) 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.
+4.6%
Revenue +1.0%/yr
FY21 £370M
FY22 £456M
FY23 £346M
FY24 £344M
FY25 £386M
Net income −21.8%/yr
FY21 £45.5M
FY22 £58.8M
FY23 £12.8M
FY24 £17.5M
FY25 £17.0M
Character of growth · EPS growth decomposed (2014-2025) −6.9 % p.a.
Revenue per share −0.2 pp

of which total revenue +2.6 pp · buybacks/dilution −2.8 pp

EBIT margin −6.8 pp
Tax rate −0.4 pp
Residual (interest, one-offs) +0.5 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Forterra plc Fair Value". https://www.fairvalue-calculator.com/stock/FORT

Peer Group

Building Materials · 253 stocks

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.

Quality Score 70 · Top 25%
Fair Value upside +27% · Above median
Return on equity (TTM) 7% · Above median
Return on assets 5% · Top 25%
Net margin (TTM) 4% · Below median
Operating margin (TTM) 12% · Above median
Revenue growth 5% · Above median
Dividend yield (TTM) 4.6% · Top 25%
Debt / equity 0.26× · Higher than median

Valuation Multiples vs Building Materials median · lower = cheaper

P/E (TTM) 17.1× · Cheaper than median
P/B 1.60× · Pricier than 75% of peers
P/S (TTM) 0.97× · Pricier than median
P/FCF 8.6× · Pricier than 75% of peers
EV/EBITDA 8.7× · Pricier than median
PEG 0.96× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 70 · sector 27
FUTURE 24 · sector 2
PAST 30 · sector 15
HEALTH 87 · sector 92
DIVIDEND 93 · sector 42

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Building Materials stocks, each showing price versus our Fair Value estimate (as of Jul 15, 2026).

Stock Price Fair Value vs Fair Value
CRH plc CRH $102.92 $70.57 -31%
UltraTech Cement Limited ULTRACEMCO ₹11,711 ₹4,719 -60%
China Jushi Co 600176 ¥54.52 ¥13.95 -74%
Grasim Industries Limited GRASIM ₹3,073 ₹1,245 -59%
CEMEX, S.A. CEMEXCPO 21.71 MXN 15.42 MXN -29%
Anhui Conch Cement Company 600585 ¥16.99 ¥26.14 +54%
Ambuja Cements Limited AMBUJACEM ₹435.25 ₹227.96 -48%
Shree Cement Limited SHREECEM ₹26,930 ₹8,215 -69%
TCC Group 1101B 43.70 TWD 10.48 TWD -76%
Taiwan Glass Ind. Corp 1802 53.30 TWD 13.98 TWD -74%

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Frequently asked questions

Is Forterra plc (FORT) overvalued or undervalued?
As of Jul 15, 2026, our model estimates a fair value of £1.74 versus a price of £1.36, about +27% (undervalued).
What is the fair value of FORT?
Our model-based fair value for Forterra plc is £1.74 (as of Jul 15, 2026), built from audited fundamentals. The current price is £1.36.
What is the quality score of FORT?
Forterra plc has a Quality Score of 70/100. 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 revenue of Forterra plc (FORT)?
Forterra plc reported trailing-twelve-month revenue of about £386M (latest available figure, as of Jul 15, 2026).
What is the net profit margin of FORT?
The net profit margin of Forterra plc is about 4.4%, meaning it keeps roughly 4.4% of revenue as net income. Based on the latest reported figures.
Does Forterra plc pay a dividend?
Forterra plc currently shows a dividend yield of about 4.38% relative to its recent price (as of Jul 15, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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