Ferguson Enterprises Inc (FERG) is fairly valued and QXO Inc (QXO) is fairly valued.
Against our estimates of intrinsic value, FERG trades at the wider discount: a margin of safety of +3%, against +3% for QXO.
Values as of the 22 Sept 2026 close.
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
A 1.8x revenue multiple, discounted for its losses, values the shares at $13.14; the price of $12.78 is 3% below that value.
Leak Score 0/100 on 2 of 12 signals
| Metric | FERG | QXO |
|---|---|---|
| Verdict | Fairly valued | Fairly valued |
| Price | $221.17 | $12.78 |
| Intrinsic value | $228.71 | $13.14 |
| Margin of safety | +3% | +3% |
| Leak Score | 49/100 (5/12) | 0/100 (2/12) |
| Market cap | $42.8B | $13.3B |
| Revenue growth, 5 years | 6.2% | 178.0% |
| Operating margin | 9.6% | -1.4% |
| Net margin | 6.8% | -6.6% |
| Return on equity | 37.5% | -4.6% |
| Debt to equity | 1.11 | 0.57 |
| P/E | 19.8x | — |
| Forward P/E | 17.6x | 19.7x |
| P/B | 6.9x | 1.0x |
| Dividend yield | 1.5% | 1.9% |