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Heidelberg Materials (XTRA:HEI) is back on investor radars as attention shifts to growing demand for sustainable construction materials and cement, with the group positioned as one of the key global suppliers.
See our latest analysis for Heidelberg Materials.
The recent focus on sustainable cement and construction stone has coincided with a 13.88% 90 day share price return and a very large 5 year total shareholder return, suggesting momentum has built over time even if short term moves remain mixed.
If this sustainability theme has your attention, it could be a good moment to broaden your watchlist with fast growing stocks with high insider ownership and see what else the market is pricing for strong growth potential.
With a €231.30 share price, a 72.51% 1 year total return and an intrinsic value estimate that sits at a large discount, the key question is whether Heidelberg Materials is still mispriced or if markets are already accounting for future growth.
Heidelberg Materials’ most followed narrative points to a fair value of €224.67, slightly below the current €231.30 share price, framing a mild premium.
The fair value estimate has risen slightly from €214.01 to €224.67, reflecting a modest uplift in the intrinsic value assessment. The future P/E has risen moderately from 16.07x to 16.95x, signaling a higher valuation multiple being applied to projected earnings.
Want to see what is driving this richer multiple, and why projected earnings, margins and revenue trends are central to that €224.67 figure? The full narrative lays out the earnings path, the assumed profitability shift and the valuation multiple that ties it all together.
Result: Fair Value of €224.67 (OVERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, that richer multiple could be challenged if construction volumes stay weak in key regions, or if subsidy support for key decarbonisation projects falls short.
Find out about the key risks to this Heidelberg Materials narrative.
That 3% premium to the €224.67 fair value sits beside a different message from the earnings multiple. Heidelberg Materials trades on a 21.9x P/E, which is below the peer average of 52.2x and also below its own fair ratio of 24.6x. So is the risk that the market has gone too far, or not far enough yet?
See what the numbers say about this price — find out in our valuation breakdown.
XTRA:HEI P/E Ratio as at Jan 2026
If you see the numbers differently or prefer to test your own assumptions, you can create a custom view in just a few minutes by starting with Do it your way.
A great starting point for your Heidelberg Materials research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
If Heidelberg Materials is on your radar, do not stop there. Use the same structured approach to surface other ideas that fit your style and risk comfort.
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.
Companies discussed in this article include HEI.DE.
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