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Assessing CRH (NYSE:CRH) Valuation as Potential S&P 500 Inclusion Boosts Investor Interest

Simply Wall St · 1d ago

CRH (NYSE:CRH) is suddenly back on a lot of screens because it is now a leading candidate for S&P 500 inclusion, a change that could reshape the stock’s ownership base.

See our latest analysis for CRH.

That backdrop helps explain why, even after a minor slip in the latest session to a 121.05 dollar share price, CRH still boasts a strong year to date share price return of just over 30 percent and an impressive three year total shareholder return above 230 percent. This suggests momentum has been building rather than fading as investors warm to the S&P 500 story, U.S. infrastructure upside, and ongoing buybacks.

If CRH’s run has you thinking about what else could rerate on improving sentiment, now might be a good time to discover fast growing stocks with high insider ownership.

With earnings growing solidly, a double digit discount to analyst targets and S&P 500 inclusion potentially ahead, is CRH’s valuation still lagging its fundamentals, or is the market already pricing in the next leg of growth?

Most Popular Narrative: 10.2% Undervalued

With CRH closing at 121.05 dollars against an implied fair value near 134.79 dollars, the prevailing narrative points to upside that still is not fully reflected in the price.

The ongoing rollout of U.S. federal infrastructure funding (less than 40% of the IIJA highway funds have been spent) and an encouraging outlook for the next highway bill create a substantial, multi-year runway for demand in CRH's core public infrastructure segments, offering the prospect for sustained revenue growth and backlog visibility.

Read the complete narrative.

Want to see what kind of long term revenue path, margin expansion, and earnings multiple are needed to back that valuation gap? The assumptions may surprise you.

Result: Fair Value of $134.79 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent reliance on U.S. infrastructure funding and execution risk around large acquisitions could easily derail the margin and valuation story that investors are buying into.

Find out about the key risks to this CRH narrative.

Another View: Market Price Versus DCF

Our DCF model paints a cooler picture, putting CRH’s fair value closer to 106.34 dollars, which makes the current 121.05 dollar price look overvalued, not cheap. If cash flows already justify the rally, how much upside is really left if sentiment cools?

Look into how the SWS DCF model arrives at its fair value.

CRH Discounted Cash Flow as at Dec 2025
CRH Discounted Cash Flow as at Dec 2025

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out CRH for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 908 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own CRH Narrative

If you see the story differently, or would rather dive into the numbers yourself, you can build a fresh narrative in minutes: Do it your way.

A great starting point for your CRH research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

Ready for your next investing move?

Before the market prices in the next wave of opportunities, put your watchlist to work with focused stock ideas that match exactly how you like to invest.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.