Morgan Sindall Group plc

LSE:MGNS Stock Report

Market Cap: UK£2.0b

Morgan Sindall Group Valuation

Is MGNS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

What is the Fair Price of MGNS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: MGNS (£43.66) is trading below our estimate of future cash flow value (£48.97)

Significantly Below Future Cash Flow Value: MGNS is trading below future cash flow value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MGNS?

Key metric: As MGNS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MGNS. This is calculated by dividing MGNS's market cap by their current earnings.
What is MGNS's PE Ratio?
PE Ratio11.6x
EarningsUK£174.90m
Market CapUK£2.04b

Price to Earnings Ratio vs Peers

How does MGNS's PE Ratio compare to its peers?

The above table shows the PE ratio for MGNS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.9x
KLR Keller Group
11.4x3.76%UK£1.6b
BBY Balfour Beatty
14.3x6.53%UK£3.8b
KIE Kier Group
14.6x17.68%UK£885.3m
RNWH Renew Holdings
15.2x9.95%UK£693.5m
MGNS Morgan Sindall Group
11.6x2.63%UK£2.0b

Price-To-Earnings vs Peers: MGNS is good value based on its Price-To-Earnings Ratio (11.6x) compared to the peer average (13.9x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does MGNS's PE Ratio compare vs other companies in the European Construction Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MGNS 11.6xIndustry Avg. 15.4xNo. of Companies22PE01020304050+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MGNS is good value based on its Price-To-Earnings Ratio (11.6x) compared to the European Construction industry average (15.4x).

Price to Earnings Ratio vs Fair Ratio

What is MGNS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MGNS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.6x
Fair PE Ratio17.4x

Price-To-Earnings vs Fair Ratio: MGNS is good value based on its Price-To-Earnings Ratio (11.6x) compared to the estimated Fair Price-To-Earnings Ratio (17.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst MGNS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£43.66
UK£55.07
+26.14%
5.75%UK£58.00UK£48.00n/a7
May ’27UK£46.50
UK£55.07
+18.43%
5.75%UK£58.00UK£48.00n/a7
Apr ’27UK£42.25
UK£54.27
+28.45%
8.57%UK£58.00UK£44.11n/a6
Mar ’27UK£49.50
UK£55.48
+12.08%
3.75%UK£58.00UK£51.38n/a6
Feb ’27UK£49.30
UK£50.83
+3.11%
7.04%UK£55.00UK£44.00n/a6
Jan ’27UK£46.50
UK£50.08
+7.71%
5.78%UK£52.50UK£44.00n/a6
Dec ’26UK£47.05
UK£50.08
+6.45%
5.78%UK£52.50UK£44.00n/a6
Nov ’26UK£46.50
UK£50.08
+7.71%
5.78%UK£52.50UK£44.00n/a6
Oct ’26UK£43.75
UK£48.56
+10.99%
4.70%UK£51.00UK£44.00n/a6
Sep ’26UK£41.75
UK£48.56
+16.31%
4.70%UK£51.00UK£44.00n/a6
Aug ’26UK£45.10
UK£48.56
+7.67%
4.70%UK£51.00UK£44.00n/a6
Jul ’26UK£45.05
UK£46.80
+3.88%
7.24%UK£50.00UK£40.00n/a6
Jun ’26UK£38.75
UK£38.93
+0.46%
9.71%UK£45.00UK£33.22UK£43.666
May ’26UK£35.45
UK£38.93
+9.81%
9.71%UK£45.00UK£33.22UK£46.506
Apr ’26UK£33.20
UK£38.93
+17.25%
9.71%UK£45.00UK£33.22UK£42.256
Mar ’26UK£33.30
UK£39.86
+19.69%
6.77%UK£45.00UK£36.15UK£49.506
Feb ’26UK£36.85
UK£39.19
+6.35%
7.79%UK£45.00UK£36.00UK£49.306
Jan ’26UK£39.00
UK£38.19
-2.07%
10.70%UK£45.00UK£32.00UK£46.506
Dec ’25UK£38.05
UK£38.19
+0.37%
10.70%UK£45.00UK£32.00UK£47.056
Nov ’25UK£37.50
UK£38.19
+1.84%
10.70%UK£45.00UK£32.00UK£46.506
Oct ’25UK£31.00
UK£30.94
-0.19%
4.27%UK£32.90UK£29.30UK£43.755
Sep ’25UK£29.90
UK£30.94
+3.48%
4.27%UK£32.90UK£29.30UK£41.755
Aug ’25UK£28.35
UK£27.50
-3.00%
5.03%UK£30.00UK£26.30UK£45.105
Jul ’25UK£25.20
UK£27.50
+9.13%
5.03%UK£30.00UK£26.30UK£45.055
Jun ’25UK£25.20
UK£27.18
+7.87%
4.98%UK£30.00UK£26.00UK£38.756
UK£55.07
Fair Value
20.7% undervalued intrinsic discount
7
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/06/01 05:38
End of Day Share Price 2026/06/01 00:00
Earnings2025/12/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Morgan Sindall Group plc is covered by 11 analysts. 7 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Harry GoadBerenberg
Robert ChantryBerenberg
Daniel Thomas CowanBNP Paribas