4 models fit Fomento de Construcciones y Contratas, S.A. and they disagree: 0 of 4 land within 15% of the average.
Two or more of our models back this value.
Large discount(i)Bronze47
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
ACCE opinionFomento de Construcciones y Contratas, S.A. (FCC.MC)
Fair value (4 models)
€14.50
ACCE price target
€10.50
Rating
Undervalued
Horizon
12 months
Fair value published on 22 Oct 2026, 12:04 CEST.
ACCE price target published on 22 Oct 2026, 16:00 CEST.
Rating published on 22 Oct 2026, 12:04 CEST.
Price used: €10.38 at the close on 23 Oct 2026, 17:30 CEST.
Models: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
28.4% below
+39.7% to fair value
ACCE score
61
out of 100
P/E
23.6x
forward 12.2x
1-year return
-10.4%
Dividend yield
4.85%
Fomento de Construcciones y Contratas, S.A. in four questions
Plain answers, details below
Free accounts get 5 full stock pages a month, including the four answers.
Overview
ACCE thesis
Fomento de Construcciones y Contratas runs waste collection, municipal cleaning, urban water and wastewater treatment, and construction and civil works, with Spain as its core market and a growing footprint in the UK and Portugal. Its moat rests on long-dated municipal and regional service concessions, which give it recurring, inflation-linked revenue and high switching costs for councils. Reported revenue growth of 13.7% is the figure to test, since a fast top line on a 6.1% operating margin suggests volume and pricing gains that have not yet reached the bottom line. The forward P/E of 12.1 against a trailing 23.4 implies earnings are expected to recover sharply, and that gap is the central question for a deeper look. The 8.6% ROE is thin for a business of this type, so the work should focus on whether margin normalisation and the capital intensity of its water and treatment assets justify the lower multiple.