GWA Group Limited

ASX:GWA Stock Report

Market Cap: AU$623.2m

GWA Group Valuation

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

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: GWA (A$2.35) is trading below our estimate of fair value (A$4.05)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for GWA. This is calculated by dividing GWA's market cap by their current earnings.
What is GWA's PE Ratio?
PE Ratio16.1x
EarningsAU$38.63m
Market CapAU$623.23m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for GWA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.3x
RWC Reliance Worldwide
24.5x13.7%AU$4.1b
EMB Embelton
14.4xn/aAU$18.2m
CVL Civmec
9.9x2.7%AU$474.6m
SXE Southern Cross Electrical Engineering
20.2x12.8%AU$442.7m
GWA GWA Group
16.1x9.9%AU$623.2m

Price-To-Earnings vs Peers: GWA is good value based on its Price-To-Earnings Ratio (16.1x) compared to the peer average (17.3x).

Price to Earnings Ratio vs Industry

How does GWA's PE Ratio compare vs other companies in the Global Building Industry?

8 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GWA 16.1xIndustry Avg. 18.1xNo. of Companies46PE01224364860+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GWA is good value based on its Price-To-Earnings Ratio (16.1x) compared to the Global Building industry average (18.1x).

Price to Earnings Ratio vs Fair Ratio

What is GWA'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.

GWA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.1x
Fair PE Ratio17.6x

Price-To-Earnings vs Fair Ratio: GWA is good value based on its Price-To-Earnings Ratio (16.1x) compared to the estimated Fair Price-To-Earnings Ratio (17.6x).

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 GWA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$2.35
AU$2.85
+21.3%
5.1%AU$3.05AU$2.65n/a4
Nov ’25AU$2.34
AU$2.93
+25.0%
2.6%AU$3.05AU$2.85n/a4
Oct ’25AU$2.38
AU$2.93
+22.9%
2.6%AU$3.05AU$2.85n/a4
Sep ’25AU$2.40
AU$2.58
+7.5%
26.9%AU$3.05AU$1.20n/a5
Aug ’25AU$2.60
AU$2.54
-2.3%
27.1%AU$3.10AU$1.20n/a5
Jul ’25AU$2.31
AU$2.54
+10.0%
27.1%AU$3.10AU$1.20n/a5
Jun ’25AU$2.30
AU$2.54
+10.4%
27.1%AU$3.10AU$1.20n/a5
May ’25AU$2.50
AU$2.54
+1.6%
27.1%AU$3.10AU$1.20n/a5
Apr ’25AU$2.68
AU$2.54
-5.2%
27.1%AU$3.10AU$1.20n/a5
Mar ’25AU$2.66
AU$2.40
-9.8%
25.0%AU$2.70AU$1.20n/a5
Feb ’25AU$2.25
AU$2.40
+6.7%
7.9%AU$2.65AU$2.15n/a4
Jan ’25AU$2.24
AU$2.24
-0.1%
2.9%AU$2.30AU$2.15n/a4
Dec ’24AU$1.94
AU$2.26
+16.3%
3.9%AU$2.40AU$2.15n/a5
Nov ’24AU$1.70
AU$2.26
+32.7%
3.9%AU$2.40AU$2.15AU$2.345
Oct ’24AU$1.85
AU$2.30
+24.4%
2.6%AU$2.40AU$2.23AU$2.385
Sep ’24AU$1.95
AU$2.30
+18.0%
2.6%AU$2.40AU$2.23AU$2.405
Aug ’24AU$1.97
AU$2.16
+9.8%
9.7%AU$2.30AU$1.80AU$2.604
Jul ’24AU$1.75
AU$2.15
+22.6%
9.4%AU$2.30AU$1.80AU$2.314
Jun ’24AU$1.77
AU$2.15
+21.2%
9.4%AU$2.30AU$1.80AU$2.304
May ’24AU$1.82
AU$2.03
+11.7%
10.1%AU$2.30AU$1.80AU$2.503
Apr ’24AU$1.64
AU$2.03
+24.4%
10.1%AU$2.30AU$1.80AU$2.683
Mar ’24AU$1.72
AU$2.11
+22.7%
10.3%AU$2.32AU$1.80AU$2.664
Feb ’24AU$2.18
AU$2.21
+1.1%
7.3%AU$2.40AU$2.00AU$2.254
Jan ’24AU$2.05
AU$2.28
+11.2%
4.8%AU$2.40AU$2.10AU$2.244
Dec ’23AU$2.12
AU$2.28
+7.5%
4.8%AU$2.40AU$2.10AU$1.944
Nov ’23AU$2.06
AU$2.28
+10.7%
4.8%AU$2.40AU$2.10AU$1.704

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

Discover undervalued companies

GWA Group

AU$633.8m

Researches, designs, manufactures, imports, and markets building fixtures and fittings to residential and commercial premises in Australia, New Zealand, and internationally.

GWA

AU$2.39

7D

1.1%

1Y

22.3%

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AU$474.6m

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CVL

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AU$474.6m

An investment holding company, provides construction and engineering services to the energy, resources, infrastructure, marine, and defense sectors in Australia.

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AU$1.26

7D

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1Y

27.9%