Analyst Sentiment Divided on WH Smith After Profit Overstatement Influences Valuation Outlook

AN

AnalystConsensusTarget

AnalystConsensusTarget

Not Invested

Based on Analyst Price Targets

Published

18 Feb 25

Updated

27 Nov 25

n/a

n/a

AnalystConsensusTarget's Fair Value

n/a

1Y

-44.2%

7D

5.4%

Loading

1Y

-44.2%

7D

5.4%

You can edit this narrative until Nov 28 6:10 AM. Then, changes will post as Updates.

Author's Valuation

UK£7.7311.3% undervalued

AnalystConsensusTarget Fair Value

Shared on 27 Nov 25

Fair value Decreased 4.91%

SMWH: Long-Term Upside Will Materialize Following CEO Transition And Profit Restatement

The analyst price target for WH Smith has been reduced, with new targets falling from previous highs, for example, from 900 GBp to 750 GBp. This change is driven by analyst concerns over recent downward revisions to profit margin and revenue growth forecasts. Analyst Commentary The latest analyst notes highlight a range of views regarding WH Smith's recent performance, reflecting both cautious outlooks and some optimistic signals.

Shared on 06 Nov 25

Fair value Increased 0.56%

SMWH: Long-Term Potential Will Improve After Resolution Of Profit Overstatement

Analysts have slightly raised their average price target for WH Smith to £8.13 from £8.09. This change is attributed to updated profit forecasts and recent shifts in buy and hold recommendations.

Shared on 23 Oct 25

Fair value Decreased 7.28%

Analysts have lowered their fair value estimate for WH Smith from £8.72 to £8.09 per share. They cite greater uncertainty in the company’s underlying profits following the recent overstatement of trading figures.

Shared on 21 Sep 25

Fair value Decreased 9.35%

The consensus analyst price target for WH Smith has been reduced from £9.62 to £8.72, driven by material overstatement of trading profits, heightened concerns over profit transparency, and a widespread shift in analyst outlooks toward caution and risk mitigation. Analyst Commentary Material overstatement of trading profits has created uncertainty regarding the true profitability of the company's growth initiatives.

Shared on 06 Sep 25

Fair value Decreased 6.33%

WH Smith's consensus price target was cut to £9.62 (from £10.27) as analysts flagged heightened uncertainty and risk following the identification of profit overstatement and financial inaccuracies, prompting a more cautious outlook until transparency issues are resolved. Analyst Commentary Profit overstatement identified by WH Smith, increasing uncertainty and leading to rating suspension by key brokers.

Shared on 22 Aug 25

Fair value Decreased 21%

WH Smith's fair value has been revised downward primarily due to a higher discount rate and a modestly lower net profit margin, resulting in the consensus analyst price target dropping from £12.97 to £11.46. What's in the News Goldman Sachs suspended its rating on WH Smith due to insufficient information following the company's identification of an overstatement of profits (Periodicals).

Shared on 01 May 25

Fair value Decreased 7.75%

Shared on 23 Apr 25

Fair value Decreased 2.16%

AnalystConsensusTarget has decreased revenue growth from 3.7% to 1.0%, decreased profit margin from 7.3% to 6.3% and increased future PE multiple from 15.3x to 18.7x.

Shared on 17 Apr 25

Fair value Decreased 7.23%

AnalystConsensusTarget has decreased revenue growth from 4.9% to 3.7% and decreased future PE multiple from 17.1x to 15.3x.

Shared on 09 Apr 25

Fair value Increased 1.64%

AnalystConsensusTarget has decreased revenue growth from 5.4% to 4.9%.

Shared on 02 Apr 25

Fair value Increased 17%

AnalystConsensusTarget has increased revenue growth from -0.9% to 5.4% and increased shares outstanding growth rate from -0.0% to 0.0%.

Shared on 26 Mar 25

Fair value Decreased 16%

Shared on 19 Mar 25

Fair value Decreased 0.19%

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on 13 Mar 25

Fair value Increased 2.33%

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget Fair Value

UK£7.73

11.3% undervalued

Future estimation in

% p.a.

0

Decrease

Increase

Current revenue growth rate

1.08%

Specialty Stores revenue growth rate

0.29%

Risk Level (Discount Rate)

Our default considers factors like the company's size, volatility, profitablity and country of operation.

%

0

Decrease

Increase

Current discount rate

12.44%

Calculation

UK£96.96m

Earnings '28

x

14.49x

PE Ratio '28

=

UK£1.41b

Market Cap '28

UK£1.41b

Market Cap '28

/

128.00m

No. shares '28

=

UK£10.98

Share Price '28

UK£10.98 Share Price '28

Discounted to 2025 @ 12.39% p.a.

=

UK£7.73

Fair Value '25