Core & Main Inc (CNM) is undervalued and Ferguson Enterprises Inc (FERG) is fairly valued.
Against our estimates of intrinsic value, CNM trades at the wider discount: a margin of safety of +26%, against +3% for FERG.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.6% (average of 3 methods) values the shares at $58.43; the price of $43.01 is 26% below that value, and 78% of that value comes from beyond year five.
Leak Score 84/100 on 3 of 12 signals
Discounting its cash flows at 10.2% (average of 3 methods) values the shares at $228.71; the price of $221.17 is 3% below that value, and 72% of that value comes from beyond year five.
Leak Score 49/100 on 5 of 12 signals
| Metric | CNM | FERG |
|---|---|---|
| Verdict | Undervalued | Fairly valued |
| Price | $43.01 | $221.17 |
| Intrinsic value | $58.43 | $228.71 |
| Margin of safety | +26% | +3% |
| Leak Score | 84/100 (3/12) | 49/100 (5/12) |
| Market cap | $8.2B | $42.8B |
| Revenue growth, 5 years | 16.0% | 6.2% |
| Operating margin | 9.7% | 9.6% |
| Net margin | 6.0% | 6.8% |
| Return on equity | 23.4% | 37.5% |
| Debt to equity | 1.35 | 1.11 |
| P/E | 17.8x | 19.8x |
| Forward P/E | 12.6x | 17.6x |
| P/B | 3.9x | 6.9x |
| Dividend yield | — | 1.5% |