Legrand Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: LR (€96.16) is trading above our estimate of fair value (€63.34)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

LR 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/Revenue3.3x
Enterprise Value/EBITDA14.7x
PEG Ratio4x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19x
ZAG Zumtobel Group
7.1xn/a€268.4m
ANDR Andritz
10x6.6%€5.1b
6594 Nidec
32.6x16.5%JP¥4.1t
ROK Rockwell Automation
26.5x10.2%US$32.1b
LR Legrand
22.3x5.5%€25.6b

Price-To-Earnings vs Peers: LR is expensive based on its Price-To-Earnings Ratio (22.3x) compared to the peer average (19x).


Price to Earnings Ratio vs Industry

How does LR's PE Ratio compare vs other companies in the European Electrical Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: LR is expensive based on its Price-To-Earnings Ratio (22.3x) compared to the European Electrical industry average (20x).


Price to Earnings Ratio vs Fair Ratio

What is LR'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.

LR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.3x
Fair PE Ratio13x

Price-To-Earnings vs Fair Ratio: LR is expensive based on its Price-To-Earnings Ratio (22.3x) compared to the estimated Fair Price-To-Earnings Ratio (13x).


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 LR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€96.16
€95.83
-0.3%
12.3%€113.00€75.00n/a18
Apr ’25€98.74
€94.63
-4.2%
12.0%€113.00€75.00n/a19
Mar ’25€94.34
€92.95
-1.5%
10.8%€110.00€75.00n/a20
Feb ’25€90.08
€91.50
+1.6%
11.4%€110.00€75.00n/a20
Jan ’25€94.12
€91.80
-2.5%
15.3%€120.00€60.00n/a20
Dec ’24€88.98
€91.95
+3.3%
14.5%€115.00€60.00n/a19
Nov ’24€81.14
€93.11
+14.7%
14.4%€115.00€60.00n/a19
Oct ’24€86.64
€93.45
+7.9%
14.2%€115.00€60.00n/a20
Sep ’24€91.10
€92.76
+1.8%
13.5%€115.00€60.00n/a21
Aug ’24€89.06
€92.76
+4.2%
13.5%€115.00€60.00n/a21
Jul ’24€89.58
€89.38
-0.2%
11.4%€103.00€60.00n/a21
Jun ’24€88.88
€89.14
+0.3%
11.5%€103.00€60.00n/a21
May ’24€85.52
€88.52
+3.5%
11.5%€100.00€60.00n/a21
Apr ’24€84.32
€87.29
+3.5%
13.0%€100.00€60.30€98.7422
Mar ’24€88.12
€86.51
-1.8%
14.1%€100.00€60.30€94.3422
Feb ’24€82.22
€83.01
+1.0%
12.6%€96.00€60.30€90.0821
Jan ’24€75.72
€81.63
+7.8%
11.9%€95.00€60.30€94.1221
Dec ’23€79.48
€81.73
+2.8%
12.0%€95.00€60.30€88.9821
Nov ’23€77.98
€83.33
+6.9%
13.2%€100.00€60.30€81.1422
Oct ’23€66.76
€86.01
+28.8%
14.0%€110.00€60.30€86.6422
Sep ’23€72.04
€89.43
+24.1%
11.4%€110.00€70.00€91.1022
Aug ’23€80.42
€89.98
+11.9%
12.2%€110.00€66.00€89.0622
Jul ’23€70.16
€94.88
+35.2%
11.9%€120.00€75.00€89.5822
Jun ’23€79.38
€96.48
+21.5%
11.9%€120.00€75.00€88.8822
May ’23€84.32
€96.66
+14.6%
11.9%€115.00€75.00€85.5222
Apr ’23€87.38
€97.88
+12.0%
12.8%€125.00€75.00€84.3222

Analyst Forecast: Target price is lower than the current share price.


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