As of 2025-07-10, the Fair Value of North American Construction Group Ltd (NOA.TO) is 8.59 CAD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 22.61 CAD, the upside of North American Construction Group Ltd is -62%.

Is NOA.TO a good investment?

With the market price of 22.61 CAD and our fair value calculation, North American Construction Group Ltd (NOA.TO) is not a good investment. Investing in NOA.TO stocks now will result in a potential loss of 62%.

22.61 CAD

Stock Price

8.59 CAD

Fair Price

FAIR VALUE CALCULATION

NOA.TO Fair Value

Peter Lynch's formula is:

NOA.TO Fair Value

= Earnings Growth Rate x TTM EPS

NOA.TO Fair Value

= 6.5 x 1.32

NOA.TO Fair Value

= 8.59

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

	Historical Earnings

	12-2020	12-2021	12-2022	12-2023	12-2024	5Y Avg
Net income	49.21	51.41	67.37	63.14	44.09	55
YoY growth	33.4%	4.5%	31.1%	-6.3%	-30.2%	6.5%

NOA.TO Fair Value - Peers Benchmarking

	Market Cap (mil)	EPS	Fair Value	Upside
a
North American Construction Group Ltd	665	1.3	8.59	-62%
Tidewater Inc	2,551	3.6	89.07	72.8%
Select Energy Services Inc	1,152	0.3	1.48	-84.5%
RPC Inc	1,151	0.5	11.73	124.7%
Trican Well Service Ltd	1,029	0.6	13.89	143.3%
Tetra Technologies Inc	471	0.8	20.93	491.3%
FTS International Inc	373	-7.6	-37.87	-242.8%
Step Energy Services Ltd	315	-0.2	-5.36	-222.5%
Calfrac Well Services Ltd	294	0.2	5.28	54.5%
Source Energy Services Ltd	191	2.3	57.59	309.6%
Macro Enterprises Inc	126	0.3	1.71	-57.2%

NOA.TO Fair Value - Key Data

Market Cap (mil)	665
P/E	17.1x
Forward P/E	9.4x

EPS	1.32
Avg earnings growth rate	6.5%
TTM earnings	39

NOA.TO Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.