What is Installed Building Products, Inc. worth?
With the base-case assumptions below, a discounted cash flow model on Installed Building Products, Inc.'s reported free cash flow gives $287.66 per share. The share price was $200.23 on September 25, 2026, 30% below that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | 7.5% | 10.0% | $168.86 | -16% |
| Base | 12.5% | 9.0% | $287.66 | +44% |
| Bull | 17.5% | 8.0% | $524.37 | +162% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $378.54 | $406.70 | $441.12 | $484.15 | $539.47 |
| 8.0% | $310.40 | $328.67 | $350.25 | $376.15 | $407.81 |
| 9.0% | $260.77 | $273.25 | $287.66 | $304.47 | $324.33 |
| 10.0% | $223.07 | $231.95 | $242.02 | $253.52 | $266.79 |
| 11.0% | $193.54 | $200.05 | $207.33 | $215.51 | $224.79 |
Where the presets come from
Base: years 1 to 5 grow at Installed Building Products, Inc.'s revenue growth rate over the last 5 fiscal years (12.4% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions