Installed Building Products stock triggered by recent performance

Installed Building Products (IBP) has drawn fresh investor attention after recent share price strength, with the stock up around 17% over the past month and about 25% in the past 3 months.

At a share price of $323.09, the stock’s recent 7 day share price return of 10.39% and 30 day share price return of 17.16% build on a 1 year total shareholder return of 71.81%. This indicates that momentum has been present over both shorter and longer periods.

If IBP’s run has you thinking about where else performance might be building, it could be a good moment to broaden your search and check out 22 top founder-led companies.

With Installed Building Products now trading at $323.09, above the average analyst price target of $260.92 and a modelled intrinsic value that sits lower again, you have to ask: is there still a buying opportunity here, or is the market already pricing in future growth?

Most Popular Narrative: 31.6% Overvalued

Installed Building Products’ most followed narrative pegs fair value around $245.54, well below the current $323.09 share price. This creates a clear tension between recent momentum and longer term expectations.

Elevated expectations for sustained commercial and multifamily backlog strength could be driving overvaluation. While current heavy commercial activity is robust and backlogs have grown, management cautioned that multifamily headwinds will persist through 2025, with meaningful benefit not expected until 2026, resulting in possible deceleration in revenue growth in the next year.

Want to understand why this narrative still expects only modest revenue and earnings growth, yet uses a premium earnings multiple to get to fair value, and how those assumptions stack up against today’s share price and analyst targets? The full narrative breaks down the growth rates, margin path and discount rate behind that $245.54 figure, along with what would need to happen for the story to play out differently.

Result: Fair Value of $245.54 (OVERVALUED)

However, there are also clear risks to this cautious view, including potential support from long term housing demand trends and continued capital returns via buybacks and dividends.

Build Your Own Installed Building Products Narrative

If you look at the numbers and come to a different conclusion, or simply want to build a view that fits your own research, you can set up your version of the story in just a few minutes, Do it your way.

A great starting point for your Installed Building Products research is our analysis highlighting 2 key rewards and 2 important warning signs 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.