"PD/DD Ratio of 3 Companies in the Construction System Below 3 in 2025"

Valuation Gap in the Construction Sector Back on the Agenda

As of 2025, the construction sector has entered an important transformation process in terms of valuation in Turkey. While profitability across the sector weakens, the strong equity structure of company balance sheets highlights the widening gap between market value and book value. This situation presents investment opportunities for companies operating in infrastructure and real estate projects.

Unmissable Opportunities with Low P/B Ratios

In particular, the decline of P/B ratios below 1 is evaluated as a "serious discount" by analysts. Companies in the construction sector with a P/B ratio below 3 still offer attractive levels compared to their book value. In this context, four companies stand out: Akfen Construction, Enka Construction, Yeşil Yapı, and Edip Real Estate. The long-term revaluation potential of these companies in portfolios may increase with the closing of the valuation gap.

State-Supported Infrastructure Tenders and Project Growth

The available data suggests that state-supported infrastructure tenders and energy-related project growth may increase the likelihood of upward revisions of these multiples in the 2026 period. Companies in the construction sector with low P/B ratios are still undervalued by the market despite having a strong equity structure. In the long run, these companies have significant potential in terms of both net asset value and cash flow.

Detailed Company Analysis

Edip Real Estate (#EDIP) – P/B: 0.34, market value: 2.02 billion TL. The most discounted company in the sector, trading at one-third of its book value. Akfen Construction (#AKFIS) – P/B: 0.51, equity: 27.2 billion TL. Trading in a deep discount zone in the construction sector. Yeşil Yapı (#YYAPI) – P/B: 0.85, market value: 3.37 billion TL. The revaluation potential in the real estate sector is quite high.