The Weir Group PLC

DB:42W Stock Report

Market Cap: €6.7b

Weir Group Valuation

Is 42W 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-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 42W when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 42W (€25.58) is trading below our estimate of fair value (€26.15)

Significantly Below Fair Value: 42W 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 42W?

Key metric: As 42W is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 42W. This is calculated by dividing 42W's market cap by their current earnings.
What is 42W's PE Ratio?
PE Ratio25.3x
EarningsUK£220.60m
Market CapUK£5.59b

Price to Earnings Ratio vs Peers

How does 42W's PE Ratio compare to its peers?

The above table shows the PE ratio for 42W vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.4x
G1A GEA Group
18.6x8.3%€7.6b
RAA RATIONAL
42.3x6.9%€10.0b
KRN Krones
14.6x16.2%€3.6b
GIL DMG MORI
22.1xn/a€3.6b
42W Weir Group
25.3x19.0%€5.6b

Price-To-Earnings vs Peers: 42W is expensive based on its Price-To-Earnings Ratio (25.3x) compared to the peer average (24.4x).

Price to Earnings Ratio vs Industry

How does 42W's PE Ratio compare vs other companies in the DE Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
42W 25.3xIndustry Avg. 14.8xNo. of Companies6PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 42W is expensive based on its Price-To-Earnings Ratio (25.3x) compared to the German Machinery industry average (14.8x).

Price to Earnings Ratio vs Fair Ratio

What is 42W'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.

42W PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.3x
Fair PE Ratio19.6x

Price-To-Earnings vs Fair Ratio: 42W is expensive based on its Price-To-Earnings Ratio (25.3x) compared to the estimated Fair Price-To-Earnings Ratio (19.6x).

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 42W forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€25.58
€28.08
+9.8%
6.0%€30.85€24.97n/a19
Nov ’25€24.76
€27.49
+11.0%
7.3%€30.73€23.08n/a19
Oct ’25€25.88
€27.22
+5.2%
7.6%€30.48€22.89n/a19
Sep ’25€23.62
€26.98
+14.2%
7.3%€30.07€22.58n/a20
Aug ’25€24.02
€27.49
+14.5%
7.9%€30.86€22.91n/a20
Jul ’25€23.34
€27.23
+16.7%
9.3%€30.70€21.96n/a20
Jun ’25€25.08
€26.76
+6.7%
9.7%€30.54€21.85n/a20
May ’25€23.64
€26.35
+11.5%
10.0%€30.14€20.84n/a18
Apr ’25€23.40
€26.14
+11.7%
12.2%€30.08€18.40n/a17
Mar ’25€21.40
€26.34
+23.1%
12.5%€30.07€18.40n/a17
Feb ’25€21.00
€26.40
+25.7%
12.7%€30.15€18.73n/a17
Jan ’25€21.80
€26.01
+19.3%
12.6%€29.60€18.57n/a16
Dec ’24€21.80
€26.61
+22.1%
9.8%€29.32€19.77n/a16
Nov ’24€19.50
€26.61
+36.5%
9.8%€29.32€19.77€24.7616
Oct ’24€21.80
€26.40
+21.1%
9.0%€29.17€20.63€25.8815
Sep ’24€21.40
€26.30
+22.9%
9.7%€29.56€20.91€23.6216
Aug ’24€21.20
€25.93
+22.3%
8.8%€28.15€20.82€24.0217
Jul ’24€19.90
€25.77
+29.5%
9.3%€29.08€20.47€23.3417
Jun ’24€19.70
€25.42
+29.1%
8.5%€28.54€20.09€25.0817
May ’24€21.20
€25.11
+18.5%
8.4%€28.27€19.90€23.6417
Apr ’24€20.80
€24.57
+18.1%
9.8%€28.53€20.08€23.4017
Mar ’24€21.40
€22.73
+6.2%
15.1%€27.05€12.96€21.4016
Feb ’24€20.20
€22.07
+9.2%
14.7%€26.08€13.04€21.0016
Jan ’24€18.80
€22.53
+19.8%
15.1%€26.72€12.78€21.8016
Dec ’23€20.80
€22.74
+9.3%
14.2%€26.61€12.73€21.8016
Nov ’23€18.70
€22.40
+19.8%
13.6%€26.45€12.79€19.5016

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

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