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IES Holdings (IESC): Valuation Check After Strong 2025 Results and Gulf Island Fabrication Acquisition

Simply Wall St · 1d ago

IES Holdings (IESC) just wrapped up fiscal 2025 with upbeat fourth quarter and full year results, powered by data center demand, while also announcing the Gulf Island Fabrication acquisition to deepen its infrastructure capabilities.

See our latest analysis for IES Holdings.

That backdrop of robust earnings and the Gulf Island Fabrication deal has helped fuel a 22.6 percent 3 month share price return and a remarkable multi year total shareholder return. This suggests momentum is still very much on IES’s side.

If IES’s run has you thinking about where the next infrastructure driven winner might come from, it could be worth scanning fast growing stocks with high insider ownership as a starting shortlist.

But with IES trading just below its analyst price target after a stellar multi year run, investors now face a tougher question: is there still upside left in the story, or is the market already pricing in future growth?

Price-to-Earnings of 28.1x: Is it justified?

Based on a price-to-earnings ratio of 28.1x at a last close of $428.62, IES Holdings screens as more expensive than many peers, even after a strong run.

The price-to-earnings ratio compares the current share price to the company’s earnings per share, making it a direct gauge of how much investors are willing to pay for each dollar of current profits. For a business like IES, with established profitability and a history of earnings growth, this metric is a key shorthand for how the market is pricing in future expansion.

On one side, IES appears more expensive than its immediate peer group, with its 28.1x multiple sitting materially above the peer average of 23.1x. This hints that investors are placing a premium on its earnings trajectory. However, when lined up against the broader US Construction industry, that same 28.1x multiple looks more conservative relative to the sector average of 34.5x and remains below an estimated fair price-to-earnings ratio of 36x that the market could eventually gravitate toward if growth continues to deliver.

Against the rest of the industry, IES’s current pricing looks more like a relative bargain than a stretch. Its 28.1x multiple notably undercuts the 34.5x average while still reflecting its earnings profile and return on equity.

Explore the SWS fair ratio for IES Holdings

Result: Price-to-Earnings of 28.1x (ABOUT RIGHT)

However, investors should watch for a slowdown in data center build outs or integration hiccups from the Gulf Island acquisition that could dampen growth expectations.

Find out about the key risks to this IES Holdings narrative.

Another View: Our DCF Signals Caution

While the price to earnings lens suggests IES is reasonably valued, our DCF model paints a cooler picture, with the current $428.62 share price sitting above an estimated fair value of $398.34. Is the market paying too much today for tomorrow’s cash flows?

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

IESC Discounted Cash Flow as at Dec 2025
IESC 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 IES Holdings 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 906 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 IES Holdings Narrative

If you see the numbers differently or want to dig into the details yourself, you can shape a complete view in minutes: Do it your way.

A great starting point for your IES Holdings research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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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.