Update shared on22 Aug 2025
Fair value Decreased 12%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).
- WH Smith recently disclosed an accounting issue involving the overstatement of its profits, prompting increased market scrutiny (Periodicals).
- Palliser Capital acquired nearly a 5% stake in WH Smith PLC and communicated plans to examine the company’s leverage targets and capital allocation policy (Key Developments).
- The activist involvement from Palliser Capital aims to improve shareholder returns by assessing and potentially influencing WH Smith’s financial policies (Key Developments).
- Recent events have raised concerns around WH Smith’s financial transparency and may lead to further governance or structural changes within the company (Periodicals, Key Developments).
Valuation Changes
Summary of Valuation Changes for WH Smith
- The Consensus Analyst Price Target has significantly fallen from £12.97 to £11.46.
- The Discount Rate for WH Smith has significantly risen from 10.75% to 12.44%.
- The Net Profit Margin for WH Smith has fallen slightly from 6.34% to 6.15%.
Disclaimer
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