Sodexo Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: SW (€80) is trading above our estimate of fair value (€58.86)

Significantly Below Fair Value: SW is trading above our estimate of fair value.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA10.7x
PEG Ratio1.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.5x
FDJ La Française des Jeux Société anonyme
14.8x4.5%€6.7b
AC Accor
17.1x8.7%€10.0b
BAIN Société Anonyme des Bains de Mer et du Cercle des Étrangers à Monaco
25xn/a€2.6b
TXRH Texas Roadhouse
33.1x12.4%US$12.9b
SW Sodexo
15.9x9.0%€11.7b

Price-To-Earnings vs Peers: SW is good value based on its Price-To-Earnings Ratio (15.9x) compared to the peer average (22.5x).


Price to Earnings Ratio vs Industry

How does SW's PE Ratio compare vs other companies in the European Hospitality Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.0%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.0%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: SW is good value based on its Price-To-Earnings Ratio (15.9x) compared to the European Hospitality industry average (18x).


Price to Earnings Ratio vs Fair Ratio

What is SW'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.

SW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.9x
Fair PE Ratio15.6x

Price-To-Earnings vs Fair Ratio: SW is expensive based on its Price-To-Earnings Ratio (15.9x) compared to the estimated Fair Price-To-Earnings Ratio (15.6x).


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 SW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€79.80
€91.39
+14.5%
6.0%€102.00€80.00n/a18
Oct ’25€73.00
€90.72
+24.3%
5.6%€98.00€80.00n/a18
Sep ’25€80.50
€92.00
+14.3%
5.4%€99.00€80.00n/a19
Aug ’25€87.30
€92.46
+5.9%
5.2%€99.00€80.00n/a19
Jul ’25€85.70
€92.29
+7.7%
5.3%€100.00€80.00n/a19
Jun ’25€85.70
€91.53
+6.8%
5.9%€100.00€78.00n/a19
May ’25€81.75
€90.92
+11.2%
5.3%€100.00€80.00n/a18
Apr ’25€79.48
€90.04
+13.3%
4.8%€99.00€80.00n/a18
Mar ’25€75.00
€90.07
+20.1%
4.8%€99.00€80.00n/a18
Feb ’25€74.32
€112.06
+50.8%
9.4%€122.00€89.00n/a18
Jan ’25€99.62
€115.56
+16.0%
7.1%€133.00€99.00n/a18
Dec ’24€98.86
€114.78
+16.1%
7.7%€133.00€99.00n/a18
Nov ’24€101.00
€114.78
+13.6%
7.6%€133.00€99.00n/a18
Oct ’24€97.52
€110.88
+13.7%
7.0%€123.00€96.00€73.0018
Sep ’24€99.76
€110.60
+10.9%
6.8%€123.00€96.00€80.5018
Aug ’24€92.92
€109.73
+18.1%
7.6%€123.00€94.00€87.3019
Jul ’24€100.85
€107.84
+6.9%
7.4%€120.00€94.00€85.7019
Jun ’24€101.90
€106.49
+4.5%
6.2%€114.00€94.00€85.7020
May ’24€97.20
€103.84
+6.8%
7.6%€114.00€87.00€81.7520
Apr ’24€90.06
€100.44
+11.5%
6.1%€114.00€87.00€79.4821
Mar ’24€87.08
€100.37
+15.3%
6.2%€114.00€87.00€75.0021
Feb ’24€89.90
€100.13
+11.4%
6.0%€114.00€87.00€74.3221
Jan ’24€89.48
€99.53
+11.2%
5.8%€111.00€87.00€99.6220
Dec ’23€92.20
€97.83
+6.1%
5.5%€105.00€87.00€98.8620
Nov ’23€88.80
€94.78
+6.7%
7.5%€105.00€78.00€101.0020
Oct ’23€77.16
€88.02
+14.1%
8.5%€100.00€74.00€97.5220

Analyst Forecast: Target price is less than 20% higher than the current share price.


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