Temple & Webster Group Ltd

ASX:TPW Stock Report

Market Cap: AU$1.4b

Temple & Webster Group Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: TPW (A$11.51) is trading below our estimate of fair value (A$13.97)

Significantly Below Fair Value: TPW is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

Key metric: As TPW is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for TPW. This is calculated by dividing TPW's market cap by their current revenue.
What is TPW's PS Ratio?
PS Ratio2.7x
SalesAU$497.84m
Market CapAU$1.41b

Price to Sales Ratio vs Peers

How does TPW's PS Ratio compare to its peers?

The above table shows the PS ratio for TPW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.3x
NCK Nick Scali
2.5x9.4%AU$1.2b
ADH Adairs
0.7x5.7%AU$457.2m
JYC Joyce
0.9xn/aAU$132.7m
AX1 Accent Group
0.9x6.4%AU$1.4b
TPW Temple & Webster Group
2.7x15.8%AU$1.4b

Price-To-Sales vs Peers: TPW is expensive based on its Price-To-Sales Ratio (2.7x) compared to the peer average (1.3x).

Price to Sales Ratio vs Industry

How does TPW's PS Ratio compare vs other companies in the AU Specialty Retail Industry?

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
PWR Peter Warren Automotive Holdings
0.1x2.6%US$195.72m
BKG Booktopia Group
0.06xn/aUS$6.97m
MOZ Mosaic Brands
0.01xn/aUS$4.18m
SRY Story-I
0.03xn/aUS$994.66k
No more companies available in this PS range
TPW 2.7xIndustry Avg. 0.8xNo. of Companies4PS00.61.21.82.43+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: TPW is expensive based on its Price-To-Sales Ratio (2.7x) compared to the Australian Specialty Retail industry average (0.8x).

Price to Sales Ratio vs Fair Ratio

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

TPW PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.7x
Fair PS Ratio1.1x

Price-To-Sales vs Fair Ratio: TPW is expensive based on its Price-To-Sales Ratio (2.7x) compared to the estimated Fair Price-To-Sales Ratio (1.1x).

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 TPW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$11.51
AU$12.97
+12.7%
6.4%AU$14.01AU$11.50n/a10
Nov ’25AU$11.40
AU$12.97
+13.8%
6.4%AU$14.01AU$11.50n/a10
Oct ’25AU$13.07
AU$12.87
-1.5%
7.3%AU$14.30AU$11.20n/a10
Sep ’25AU$11.65
AU$12.31
+5.6%
16.3%AU$14.30AU$6.64n/a11
Aug ’25AU$10.26
AU$11.29
+10.0%
15.3%AU$13.00AU$6.64n/a11
Jul ’25AU$9.52
AU$11.20
+17.6%
14.8%AU$13.00AU$6.64n/a11
Jun ’25AU$9.78
AU$11.29
+15.4%
14.8%AU$13.00AU$6.64n/a11
May ’25AU$11.34
AU$11.47
+1.2%
15.1%AU$13.00AU$6.64n/a11
Apr ’25AU$13.12
AU$11.47
-12.5%
15.1%AU$13.00AU$6.64n/a11
Mar ’25AU$12.29
AU$11.47
-6.6%
15.1%AU$13.00AU$6.64n/a11
Feb ’25AU$9.05
AU$8.05
-11.0%
14.4%AU$11.00AU$6.75n/a11
Jan ’25AU$8.72
AU$7.87
-9.8%
9.9%AU$9.25AU$6.75n/a11
Dec ’24AU$8.12
AU$7.17
-11.7%
20.0%AU$9.00AU$4.14n/a12
Nov ’24AU$5.86
AU$6.38
+8.9%
16.9%AU$8.00AU$4.14AU$11.4012
Oct ’24AU$6.00
AU$6.39
+6.5%
17.6%AU$8.00AU$4.14AU$13.0711
Sep ’24AU$7.12
AU$6.39
-10.2%
17.6%AU$8.00AU$4.14AU$11.6511
Aug ’24AU$6.73
AU$4.87
-27.7%
21.0%AU$7.00AU$3.88AU$10.2611
Jul ’24AU$5.88
AU$4.60
-21.8%
17.9%AU$6.60AU$3.72AU$9.5212
Jun ’24AU$4.90
AU$4.73
-3.4%
19.5%AU$6.60AU$3.72AU$9.7813
May ’24AU$3.96
AU$4.75
+20.1%
19.3%AU$6.50AU$3.72AU$11.3411
Apr ’24AU$3.44
AU$4.81
+39.9%
19.9%AU$6.50AU$3.72AU$13.1211
Mar ’24AU$3.54
AU$4.73
+33.7%
20.2%AU$6.50AU$3.72AU$12.2912
Feb ’24AU$5.71
AU$5.92
+3.8%
27.1%AU$10.00AU$3.87AU$9.0513
Jan ’24AU$4.61
AU$5.92
+28.3%
27.0%AU$10.00AU$3.87AU$8.7213
Dec ’23AU$5.18
AU$5.92
+14.2%
27.0%AU$10.00AU$3.87AU$8.1213
Nov ’23AU$5.93
AU$6.18
+4.3%
24.2%AU$10.00AU$3.87AU$5.8613

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

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