Latest Ratios: P/E Ratio 23.2x · EV/EBITDA 13.9x · ROE 37.5%. (2011–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.1B | $7.0B | $4.9B | $5.2B | $2.5B | $4.1B | $3.0B | $2.1B | $1.1B | $2.4B | $1.3B |
| Enterprise Value | $6.8B | $7.7B | $5.6B | $5.7B | $3.2B | $4.7B | $3.4B | $2.5B | $1.4B | $2.7B | $1.4B |
| P/E Ratio → | 23.25 | 26.71 | 19.26 | 21.23 | 11.06 | 34.84 | 31.17 | 30.21 | 19.25 | 58.42 | 33.58 |
| P/S Ratio | 2.05 | 2.36 | 1.68 | 1.86 | 0.93 | 2.10 | 1.83 | 1.36 | 0.79 | 2.13 | 1.50 |
| P/B Ratio | 8.60 | 9.88 | 7.00 | 7.72 | 5.01 | 9.93 | 9.49 | 8.23 | 5.77 | 11.46 | 8.41 |
| P/FCF | 20.22 | 23.32 | 19.65 | 18.57 | 10.64 | 40.87 | 20.58 | 28.22 | 17.14 | 65.00 | 28.00 |
| P/OCF | 16.37 | 18.89 | 14.53 | 15.21 | 8.89 | 29.93 | 16.75 | 16.72 | 10.89 | 35.07 | 17.68 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.61 | 1.90 | 2.07 | 1.19 | 2.41 | 2.07 | 1.65 | 1.07 | 2.39 | 1.68 |
| EV / EBITDA | 13.90 | 15.80 | 10.81 | 11.61 | 6.88 | 16.31 | 13.69 | 12.49 | 9.38 | 20.93 | 14.35 |
| EV / EBIT | 17.63 | 19.93 | 14.59 | 15.52 | 9.24 | 25.62 | 21.18 | 20.71 | 15.38 | 37.01 | 22.00 |
| EV / FCF | — | 25.75 | 22.24 | 20.61 | 13.72 | 46.83 | 23.24 | 34.30 | 23.21 | 73.01 | 31.30 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 34.0% | 34.0% | 33.8% | 33.5% | 31.0% | 29.9% | 30.8% | 28.8% | 27.8% | 28.6% | 29.3% |
| Operating Margin | 13.0% | 13.0% | 13.0% | 13.3% | 12.9% | 9.5% | 9.8% | 8.0% | 7.0% | 6.6% | 7.7% |
| Net Profit Margin | 8.9% | 8.9% | 8.7% | 8.8% | 8.4% | 6.0% | 5.9% | 4.5% | 4.1% | 3.6% | 4.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 37.5% | 37.5% | 37.3% | 41.9% | 49.1% | 32.3% | 34.2% | 31.5% | 27.9% | 22.6% | 28.6% |
| ROA | 12.9% | 12.9% | 12.7% | 13.0% | 13.0% | 8.4% | 8.5% | 7.0% | 7.0% | 6.9% | 9.2% |
| ROIC | 20.7% | 20.7% | 22.1% | 22.6% | 23.2% | 16.3% | 17.3% | 14.6% | 13.2% | 13.7% | 17.8% |
| ROCE | 22.6% | 22.6% | 22.9% | 23.9% | 24.7% | 16.4% | 17.6% | 15.8% | 15.1% | 16.3% | 21.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.48 | 1.48 | 1.39 | 1.42 | 1.92 | 2.25 | 1.95 | 2.48 | 2.54 | 1.71 | 1.08 |
| Debt / EBITDA | 2.15 | 2.15 | 1.89 | 1.93 | 2.04 | 3.22 | 2.49 | 3.10 | 3.05 | 2.78 | 1.65 |
| Net Debt / Equity | — | 1.03 | 0.92 | 0.85 | 1.45 | 1.45 | 1.23 | 1.77 | 2.04 | 1.41 | 0.99 |
| Net Debt / EBITDA | 1.49 | 1.49 | 1.26 | 1.15 | 1.55 | 2.08 | 1.57 | 2.21 | 2.45 | 2.30 | 1.51 |
| Debt / FCF | — | 2.43 | 2.59 | 2.04 | 3.08 | 5.96 | 2.66 | 6.08 | 6.08 | 8.01 | 3.29 |
| Interest Coverage | 12.26 | 12.26 | 10.39 | 10.00 | 8.29 | 5.64 | 5.33 | 4.30 | 4.52 | 4.21 | 10.65 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.03 | 3.03 | 2.94 | 3.09 | 2.70 | 2.79 | 2.64 | 2.72 | 2.27 | 2.22 | 1.48 |
| Quick Ratio | 2.44 | 2.44 | 2.40 | 2.62 | 2.16 | 2.33 | 2.31 | 2.37 | 1.93 | 1.92 | 1.17 |
| Cash Ratio | 0.94 | 0.94 | 0.91 | 1.12 | 0.70 | 1.08 | 0.98 | 1.01 | 0.55 | 0.58 | 0.11 |
| Asset Turnover | — | 1.44 | 1.43 | 1.40 | 1.50 | 1.19 | 1.39 | 1.37 | 1.60 | 1.53 | 1.87 |
| Inventory Turnover | 9.66 | 9.66 | 10.00 | 11.35 | 10.43 | 9.64 | 14.81 | 14.43 | 15.78 | 16.73 | 15.18 |
| Days Sales Outstanding | — | 54.56 | 53.84 | 59.77 | 54.30 | 57.99 | 58.85 | 59.04 | 58.48 | 58.23 | 54.34 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.4% | 1.2% | 1.7% | 1.2% | 2.5% | 0.9% | — | — | — | — | — |
| Payout Ratio | 33.0% | 33.0% | 33.0% | 25.9% | 28.1% | 29.7% | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.3% | 3.7% | 5.2% | 4.7% | 9.0% | 2.9% | 3.2% | 3.3% | 5.2% | 1.7% | 3.0% |
| FCF Yield | 4.9% | 4.3% | 5.1% | 5.4% | 9.4% | 2.4% | 4.9% | 3.5% | 5.8% | 1.5% | 3.6% |
| Buyback Yield | 2.8% | 2.5% | 2.9% | 0.1% | 5.6% | 0.1% | 1.2% | 0.1% | 8.5% | 0.0% | 0.1% |
| Total Shareholder Yield | 4.3% | 3.7% | 4.7% | 1.3% | 8.1% | 1.0% | 1.2% | 0.1% | 8.5% | 0.0% | 0.1% |
| Shares Outstanding | — | $27M | $28M | $28M | $29M | $30M | $30M | $30M | $31M | $32M | $31M |
Cyclical housing demand sensitivity
According to current market data, IBP trades at a forward P/E of 23.05, which appears elevated given the recent deceleration in revenue growth and the inherent volatility of the residential construction sector compared to historical trading ranges for the company.
The current valuation suggests that investors are pricing in a recovery in housing starts that may not materialize in the near term. When compared to peers like TopBuild, the premium multiple warrants caution, as it implies a growth trajectory that is currently unsupported by the most recent quarterly performance metrics.
Based on reported financial figures, IBP's ROIC has trended downward to 3.1% in 2026Q1 from 6.0% in 2024Q3, indicating that the company is struggling to generate adequate returns on its invested capital as the residential construction cycle faces significant headwinds.
This decline in return on capital suggests that the company's aggressive acquisition strategy may be encountering diminishing marginal returns. Investors should monitor whether this trend reflects structural inefficiencies in integrating new assets or simply the impact of a cooling housing market on project-based margins.
As evidenced by the 2026Q1 financial data, IBP's cash conversion cycle has extended to 75 days, a notable increase from the 58-day cycle observed in 2023Q4, suggesting that the company is facing mounting difficulties in managing its receivables and inventory turnover.
The lengthening of the cash conversion cycle implies that IBP is becoming less efficient at converting its installation services into cash. This deterioration in working capital management may indicate that the company is forced to offer more lenient payment terms to builders to maintain volume in a competitive environment.
According to recent balance sheet disclosures, IBP's debt-to-equity ratio has climbed to 1.77 in 2026Q1, representing a significant increase from the 1.42 level seen in 2024Q1, which suggests that the company is increasingly reliant on debt to sustain its operations during the current downturn.
The rising leverage profile, combined with a tightening interest coverage ratio, indicates that the company's ability to service its debt may be constrained if the housing market remains stagnant. This shift in capital structure warrants close monitoring, as it reduces the company's capacity to navigate further cyclical volatility.
The price-to-earnings ratio is frequently misapplied to IBP because it fails to account for the significant non-cash amortization of intangible assets resulting from the company's serial acquisition strategy, which artificially depresses reported net income and distorts the true economic earning power.
Analysts should instead prioritize EV/EBITDA or free cash flow metrics to better assess the company's operational performance. Relying on P/E ratios obscures the underlying cash generation capabilities and may lead to an inaccurate assessment of the company's valuation relative to its peers.
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Quick answers to the most common questions about buying IBP stock.
Installed Building Products, Inc.'s current P/E ratio is 23.2x. The historical average is 28.6x. This places it at the 36th percentile of its historical range.
Installed Building Products, Inc.'s current EV/EBITDA is 13.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.3x.
Installed Building Products, Inc.'s return on equity (ROE) is 37.5%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 18.9%.
Based on historical data, Installed Building Products, Inc. is trading at a P/E of 23.2x. This is at the 36th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Installed Building Products, Inc.'s current dividend yield is 1.43% with a payout ratio of 33.0%.
Installed Building Products, Inc. has 34.0% gross margin and 13.0% operating margin. Operating margin between 10-20% is typical for established companies.
Installed Building Products, Inc.'s Debt/EBITDA ratio is 2.1x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.