Pets at Home Group Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 PETS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PETS (£3.02) is trading below our estimate of fair value (£5.97)

Significantly Below Fair Value: PETS is trading below fair value by more than 20%.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

PETS 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/Revenue1.2x
Enterprise Value/EBITDA10.8x
PEG Ratio1.2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PETS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.9x
WOSG Watches of Switzerland Group
17.5x20.2%UK£1.0b
MOON Moonpig Group
25.5x18.5%UK£870.9m
SMWH WH Smith
28.1x23.1%UK£1.8b
FRAS Frasers Group
8.6x9.3%UK£3.4b
PETS Pets at Home Group
17.5x14.5%UK£1.4b

Price-To-Earnings vs Peers: PETS is good value based on its Price-To-Earnings Ratio (17.5x) compared to the peer average (19.9x).


Price to Earnings Ratio vs Industry

How does PETS's PE Ratio compare vs other companies in the GB Specialty Retail Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a19.8%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a19.8%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: PETS is expensive based on its Price-To-Earnings Ratio (17.5x) compared to the UK Specialty Retail industry average (17.1x).


Price to Earnings Ratio vs Fair Ratio

What is PETS'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.

PETS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.5x
Fair PE Ratio17.1x

Price-To-Earnings vs Fair Ratio: PETS is expensive based on its Price-To-Earnings Ratio (17.5x) compared to the estimated Fair Price-To-Earnings Ratio (17.1x).


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 PETS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£3.02
UK£3.59
+18.7%
12.5%UK£4.25UK£2.60n/a9
Oct ’25UK£3.00
UK£3.59
+19.6%
12.5%UK£4.25UK£2.60n/a9
Sep ’25UK£3.09
UK£3.59
+16.3%
12.5%UK£4.25UK£2.60n/a9
Aug ’25UK£3.01
UK£3.59
+19.2%
12.5%UK£4.25UK£2.60n/a9
Jul ’25UK£2.99
UK£3.61
+20.4%
13.2%UK£4.25UK£2.60n/a8
Jun ’25UK£2.96
UK£3.54
+19.7%
15.4%UK£4.25UK£2.45n/a9
May ’25UK£2.89
UK£3.66
+26.3%
15.5%UK£4.25UK£2.45n/a9
Apr ’25UK£2.68
UK£3.66
+36.2%
15.5%UK£4.25UK£2.45n/a9
Mar ’25UK£2.77
UK£3.72
+34.1%
14.8%UK£4.25UK£2.65n/a9
Feb ’25UK£2.63
UK£3.76
+42.6%
15.4%UK£4.55UK£2.70n/a9
Jan ’25UK£3.18
UK£4.01
+25.9%
13.7%UK£4.55UK£2.70n/a9
Dec ’24UK£3.14
UK£4.01
+27.4%
13.7%UK£4.55UK£2.70n/a9
Nov ’24UK£2.83
UK£4.15
+46.5%
13.9%UK£4.75UK£2.70n/a9
Oct ’24UK£3.35
UK£4.12
+23.1%
12.3%UK£4.75UK£3.00UK£3.0010
Sep ’24UK£3.78
UK£4.09
+8.1%
14.2%UK£4.75UK£2.80UK£3.099
Aug ’24UK£3.87
UK£4.09
+5.6%
14.2%UK£4.75UK£2.80UK£3.019
Jul ’24UK£3.77
UK£4.09
+8.6%
14.2%UK£4.75UK£2.80UK£2.999
Jun ’24UK£3.83
UK£4.02
+4.8%
13.3%UK£4.75UK£2.80UK£2.969
May ’24UK£3.86
UK£3.94
+2.0%
12.8%UK£4.50UK£2.65UK£2.8910
Apr ’24UK£3.69
UK£3.94
+6.6%
12.8%UK£4.50UK£2.65UK£2.6810
Mar ’24UK£3.89
UK£3.94
+1.3%
12.8%UK£4.50UK£2.65UK£2.7710
Feb ’24UK£3.59
UK£3.84
+6.7%
16.6%UK£5.10UK£2.65UK£2.6310
Jan ’24UK£2.84
UK£3.74
+31.9%
16.2%UK£5.10UK£2.65UK£3.1810
Dec ’23UK£2.65
UK£3.86
+45.4%
17.8%UK£5.10UK£2.65UK£3.149
Nov ’23UK£2.94
UK£4.25
+44.6%
18.6%UK£5.10UK£2.55UK£2.8310
Oct ’23UK£2.64
UK£4.38
+65.7%
14.5%UK£5.10UK£2.80UK£3.3510

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


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