Questor share tip: Carillion falls look overdone This is in addition to a £100m, 12-year highway maintenance contract in Canada and a £104.9m contract to transform another section of the M6 in Birmingham, between Junctions 5 and 8, into a managed motorway. Carillion's shares have underperformed since its trading update at the start of December. Of course, anything relating to construction is surrounded by a degree of uncertainty. However, the company has also been moving into areas such as facilities management. Its support service activities are responsible for more than half of its profit. Carillion continues to win contracts in Canada, a country it has strategically entered over the past few years. The group also has a good presence in the Middle East, which is spending a significant amount of money on developing its infrastructure, supported by its petrodollar reserves. There has been a problem with Eaga, the energy efficiency company Carillion bought in April, following the Government's cut in solar feed-in-tariffs. However, this is more of a setback than a disaster. The shares are trading on a December 2012 earnings multiple of just 7.4 times, falling to 7.2 in 2013. This is at a discount to Mitie, which is on a 2013 multiple of 11. The yield is a healthy 5.1pc. Last tipped at 299.7p on November 30 last year, the shares are up 9pc since then, although they were tipped as high as 384.7p in February last year. Questor thinks falls have been overdone and the shares are a buy.