Latest Ratios: P/E Ratio 31.0x · EV/EBITDA 14.2x · ROE 16.8%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $4.9B | $6.1B | $4.6B | $2.7B | $1.8B | $1.8B | $1.2B | $1.3B | $1.8B | $2.6B | $2.2B |
| Enterprise Value | $6.0B | $7.2B | $4.9B | $3.0B | $1.9B | $1.7B | $1.2B | $1.4B | $1.9B | $2.6B | $2.3B |
| P/E Ratio → | 31.03 | 31.78 | 33.48 | 61.28 | 20.63 | 175.91 | — | — | 41.96 | 75.51 | 38.73 |
| P/S Ratio | 1.11 | 1.39 | 1.15 | 0.76 | 0.56 | 0.51 | 0.34 | 0.44 | 0.53 | 0.86 | 0.88 |
| P/B Ratio | 4.90 | 5.02 | 4.27 | 2.60 | 1.86 | 1.78 | 1.23 | 1.09 | 1.27 | 2.58 | 2.40 |
| P/FCF | 14.90 | 18.54 | 14.40 | 61.71 | — | — | 6.95 | 279.45 | — | 32.62 | — |
| P/OCF | 10.51 | 13.07 | 10.09 | 14.55 | 32.98 | 80.80 | 4.54 | 11.56 | 20.53 | 17.52 | 30.25 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.63 | 1.21 | 0.85 | 0.57 | 0.50 | 0.33 | 0.50 | 0.57 | 0.85 | 0.90 |
| EV / EBITDA | 14.18 | 17.01 | 14.57 | 17.36 | 12.10 | 13.08 | — | 18.05 | 15.72 | 15.46 | 14.59 |
| EV / EBIT | 22.96 | 21.49 | 21.57 | 38.19 | 18.00 | 40.81 | — | — | 30.34 | 32.27 | 20.93 |
| EV / FCF | — | 21.84 | 15.19 | 69.04 | — | — | 6.69 | 314.31 | — | 32.50 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 16.1% | 16.1% | 14.3% | 11.3% | 11.2% | 10.4% | 9.7% | 6.5% | 11.7% | 10.5% | 12.0% |
| Operating Margin | 5.9% | 5.9% | 5.2% | 2.3% | 2.2% | 0.7% | -4.4% | -1.4% | 0.2% | 3.3% | 3.7% |
| Net Profit Margin | 4.4% | 4.4% | 3.2% | 1.2% | 2.5% | 0.3% | -4.1% | -2.1% | 0.0% | 1.1% | 2.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 16.8% | 16.8% | 12.0% | 4.3% | 8.4% | 1.0% | -13.4% | -4.7% | 0.0% | 3.6% | 6.4% |
| ROA | 5.5% | 5.5% | 4.3% | 1.8% | 3.6% | 0.4% | -5.9% | -2.4% | 0.0% | 1.9% | 3.4% |
| ROIC | 10.8% | 10.8% | 11.6% | 5.1% | 5.4% | 1.9% | -10.4% | -2.2% | 0.5% | 7.6% | 7.5% |
| ROCE | 11.5% | 11.5% | 11.0% | 5.1% | 5.2% | 1.7% | -10.2% | -2.5% | 0.6% | 8.2% | 7.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.33 | 1.33 | 0.77 | 0.72 | 0.34 | 0.37 | 0.38 | 0.36 | 0.27 | 0.23 | 0.26 |
| Debt / EBITDA | 3.82 | 3.82 | 2.50 | 4.27 | 2.18 | 2.79 | — | 5.27 | 3.19 | 1.36 | 1.57 |
| Net Debt / Equity | — | 0.90 | 0.24 | 0.31 | 0.05 | -0.02 | -0.05 | 0.14 | 0.08 | -0.01 | 0.06 |
| Net Debt / EBITDA | 2.58 | 2.58 | 0.76 | 1.84 | 0.29 | -0.17 | — | 2.00 | 0.92 | -0.06 | 0.35 |
| Debt / FCF | — | 3.31 | 0.80 | 7.33 | — | — | -0.27 | 34.86 | — | -0.12 | — |
| Interest Coverage | 7.12 | 7.12 | 7.72 | 4.24 | 8.27 | 2.07 | -5.88 | -1.23 | 4.26 | 7.32 | 8.76 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.22 | 1.22 | 1.66 | 1.60 | 1.69 | 1.71 | 1.54 | 1.64 | 1.82 | 1.88 | 2.05 |
| Quick Ratio | 1.13 | 1.13 | 1.56 | 1.49 | 1.58 | 1.65 | 1.48 | 1.53 | 1.70 | 1.78 | 1.95 |
| Cash Ratio | 0.41 | 0.41 | 0.70 | 0.61 | 0.65 | 0.55 | 0.65 | 0.57 | 0.79 | 0.84 | 0.95 |
| Asset Turnover | — | 1.10 | 1.32 | 1.25 | 1.52 | 1.40 | 1.50 | 1.16 | 1.34 | 1.60 | 1.45 |
| Inventory Turnover | 25.94 | 25.94 | 31.75 | 29.96 | 33.77 | 50.66 | 51.51 | 30.66 | 33.05 | 42.80 | 40.06 |
| Days Sales Outstanding | — | 71.55 | 76.51 | 89.63 | 78.05 | 63.58 | 58.37 | 95.02 | 73.58 | 71.27 | 71.48 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.4% | 0.4% | 0.5% | 0.9% | 1.3% | 1.3% | 1.9% | 1.9% | 1.3% | 0.8% | 0.9% |
| Payout Ratio | 11.8% | 11.8% | 18.1% | 52.3% | 27.9% | 235.8% | — | — | 3852.9% | 60.6% | 36.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.2% | 3.1% | 3.0% | 1.6% | 4.8% | 0.6% | — | — | 2.4% | 1.3% | 2.6% |
| FCF Yield | 6.7% | 5.4% | 6.9% | 1.6% | — | — | 14.4% | 0.4% | — | 3.1% | — |
| Buyback Yield | 1.0% | 0.8% | 1.1% | 0.2% | 3.9% | 0.2% | 0.1% | 2.9% | 0.9% | 0.3% | 0.2% |
| Total Shareholder Yield | 1.4% | 1.2% | 1.6% | 1.0% | 5.1% | 1.5% | 2.0% | 4.8% | 2.2% | 1.1% | 1.2% |
| Shares Outstanding | — | $53M | $53M | $53M | $52M | $46M | $46M | $47M | $44M | $40M | $40M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying GVA stock.
Granite Construction Incorporated's current P/E ratio is 31.0x. The historical average is 32.3x. This places it at the 69th percentile of its historical range.
Granite Construction Incorporated's current EV/EBITDA is 14.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.3x.
Granite Construction Incorporated's return on equity (ROE) is 16.8%. The historical average is 7.7%.
Based on historical data, Granite Construction Incorporated is trading at a P/E of 31.0x. This is at the 69th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Granite Construction Incorporated's current dividend yield is 0.38% with a payout ratio of 11.8%.
Granite Construction Incorporated has 16.1% gross margin and 5.9% operating margin.
Granite Construction Incorporated's Debt/EBITDA ratio is 3.8x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Leverage spike from acquisition
Metrics are mathematically derived from official filings.
Premium Multiple on Cyclical Peak
GVA trades at 34.7x trailing earnings and 15.6x EV/EBITDA, a premium to construction peers like PRIM (16.1x P/E) and STRL (56.3x P/E), according to recent market data.
The market is pricing in sustained earnings growth, but the trailing P/E is distorted by the Q2 2026 net loss; on an EV/EBITDA basis, GVA's 15.6x is above the peer median of ~17.7x, suggesting investors are paying up for the accelerated revenue growth. However, the forward EV/EBITDA of 17.5x implies that EBITDA growth is expected to be modest, which may not justify the premium if margins revert to historical norms. The P/B of 5.48x is elevated relative to peers like VMC (4.4x) and MLM (3.3x), reflecting the market's optimism about future returns on the expanded asset base.
Margins Recovering but Volatile
Gross margin improved to 16.4% in Q2 2026 from 12.0% in Q1, but net margin swung to -19.1% due to non-operating charges, as reported in the latest quarterly financials.
Operating margin of 8.7% in Q2 2026 is near the 10.0% peak seen in Q3 2025, indicating that core project execution is stabilizing. However, the net loss of -$278M in Q2 2026, despite an operating profit, suggests significant non-operating items such as impairments or tax adjustments, which obscure true earning power. Investors should focus on operating margin as the cleaner measure of profitability, but its volatility—ranging from -6.4% to 10.0% over the past ten quarters—highlights the cyclicality of the construction business.
ROIC Recovery Masked by Leverage
ROIC rebounded to 5.0% in Q2 2026 from -2.1% in Q1, but remains below the 5.5% peak in Q3 2025, as per quarterly ratio data.
The improvement in ROIC is driven by higher operating margins, but the return on equity is deeply negative (-29.5%) due to the net loss and the expanded equity base from the acquisition. The company's return on capital is still below its cost of capital, suggesting that the acquisition has not yet generated sufficient returns to cover the increased debt. The trend over the past year shows ROIC oscillating between -2.4% and 5.5%, indicating that capital efficiency is highly sensitive to project timing and margin swings.
Working Capital Cycle Lengthens
Cash conversion cycle extended to 31 days in Q2 2026 from 43 days in Q1, but DSO rose to 56 days, according to the latest quarterly data.
The reduction in CCC is primarily due to a sharp drop in DIO (from 17 to 13 days) and a slight increase in DPO (from 48 to 39 days), but DSO remains elevated at 56 days, indicating slower collections from customers. This suggests that while inventory management has improved, the company is tying up more cash in receivables, which could strain liquidity if revenue growth continues. The working capital swings are consistent with the prior cash flow analysis, which noted significant timing effects in working capital changes.
Debt Load Doubles on Acquisition
Debt-to-equity surged to 2.11 in Q2 2026 from 0.76 a year earlier, with D/EBITDA at 20.2x, as per the latest balance sheet data.
The acquisition in Q3 2025 added $703M in debt, pushing total debt to $1.7B, while equity contracted to $752.7M due to the net loss. Interest coverage of 5.82x in Q2 2026 is still adequate, but the D/EBITDA of 20.2x is extremely high, reflecting both elevated debt and depressed EBITDA. This leverage level is a significant risk, especially if EBITDA does not grow as expected; the prior balance sheet analysis flagged integration challenges, which could impair the company's ability to service this debt.
Liquidity Cushion Thins Rapidly
Current ratio fell to 1.01 in Q2 2026 from 1.57 a year earlier, with quick ratio at 0.94, based on reported quarterly figures.
The current ratio is barely above 1.0, indicating that current assets barely cover current liabilities, and the quick ratio of 0.94 suggests that even excluding inventory, the company has limited short-term liquidity. Cash of $877M provides some buffer, but total debt of $1.7B dwarfs it, and the negative net income in Q2 2026 could further erode liquidity. Under a stress scenario, the company may need to rely on external financing or asset sales to meet obligations, given the thin working capital position.
Misapplied EV/EBITDA in Cyclical Construction
EV/EBITDA is commonly misapplied to GVA because EBITDA is highly volatile and currently depressed by acquisition-related charges, as seen in the 20.2x D/EBITDA in Q2 2026.
For construction firms, EBITDA can swing dramatically with project timing and one-time charges, making EV/EBITDA misleading. In Q2 2026, EBITDA is likely understated due to the $278M net loss, inflating the multiple. A more appropriate metric is EV/EBIT or EV/operating cash flow, which better captures the company's core earning power. Investors should also consider the net debt position, as the acquisition has significantly increased leverage, which is not fully reflected in the EV/EBITDA ratio.