Balfour Beatty plc

DB:BIH Stock Report

Market Cap: €2.7b

Balfour Beatty Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: BIH (€5.3) is trading below our estimate of fair value (€5.72)

Significantly Below Fair Value: BIH 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 BIH?

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

The above table shows the Price to Earnings ratio for BIH. This is calculated by dividing BIH's market cap by their current earnings.
What is BIH's PE Ratio?
PE Ratio9.9x
EarningsUK£230.00m
Market CapUK£2.27b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BIH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average70.9x
NCH2 thyssenkrupp nucera KGaA
116.6x35.2%€1.3b
HOT HOCHTIEF
13.3x1.9%€9.6b
B5A0 BAUER
31.9x38.2%€174.3m
NDX1 Nordex
121.8x66.7%€2.7b
BIH Balfour Beatty
9.9x0.9%€2.3b

Price-To-Earnings vs Peers: BIH is good value based on its Price-To-Earnings Ratio (9.9x) compared to the peer average (70.9x).

Price to Earnings Ratio vs Industry

How does BIH's PE Ratio compare vs other companies in the European Construction Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
BIH 9.9xIndustry Avg. 13.1xNo. of Companies22PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BIH is good value based on its Price-To-Earnings Ratio (9.9x) compared to the European Construction industry average (13.1x).

Price to Earnings Ratio vs Fair Ratio

What is BIH'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.

BIH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.9x
Fair PE Ratio12.2x

Price-To-Earnings vs Fair Ratio: BIH is good value based on its Price-To-Earnings Ratio (9.9x) compared to the estimated Fair Price-To-Earnings Ratio (12.2x).

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 BIH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€5.30
€5.97
+12.6%
18.1%€6.98€3.03n/a9
Dec ’25€5.45
€5.69
+4.4%
18.3%€6.92€3.01n/a9
Nov ’25€5.30
€5.58
+5.2%
17.1%€6.24€3.00n/a9
Oct ’25€5.20
€5.37
+3.3%
16.9%€6.09€2.93n/a9
Sep ’25€4.90
€5.37
+9.6%
16.9%€6.09€2.93n/a9
Aug ’25€4.92
€5.21
+5.9%
16.2%€5.91€2.96n/a9
Jul ’25€4.26
€5.11
+19.9%
16.0%€5.81€2.91n/a9
Jun ’25€4.46
€5.11
+14.5%
16.0%€5.81€2.91n/a9
May ’25€4.26
€5.10
+19.7%
15.6%€5.62€2.92n/a9
Apr ’25€4.46
€5.10
+14.3%
15.6%€5.62€2.92n/a9
Mar ’25€3.94
€5.01
+27.1%
16.3%€5.56€2.93n/a9
Feb ’25€3.86
€5.10
+32.2%
16.3%€5.57€2.93n/a8
Jan ’25€3.82
€4.77
+24.9%
17.6%€5.44€2.86n/a8
Dec ’24€3.74
€4.77
+27.5%
17.6%€5.44€2.86€5.458
Nov ’24€3.52
€4.84
+37.4%
17.6%€5.53€2.91€5.308
Oct ’24€3.60
€4.84
+34.3%
17.6%€5.53€2.91€5.208
Sep ’24€3.78
€4.77
+26.3%
17.4%€5.56€2.92€4.908
Aug ’24€4.04
€4.76
+17.9%
17.4%€5.46€2.87€4.928
Jul ’24€3.92
€4.76
+21.5%
17.4%€5.46€2.87€4.268
Jun ’24€4.28
€4.76
+11.3%
17.4%€5.46€2.87€4.468
May ’24€4.30
€4.75
+10.5%
17.4%€5.42€2.85€4.267
Apr ’24€4.26
€4.58
+7.6%
18.9%€5.37€2.60€4.468
Mar ’24€4.12
€4.39
+6.6%
17.9%€5.38€2.61€3.948
Feb ’24€4.12
€4.39
+6.6%
17.9%€5.38€2.61€3.868
Jan ’24€3.92
€4.40
+12.4%
16.2%€5.24€2.68€3.828
Dec ’23€3.74
€4.28
+14.4%
16.4%€5.22€2.67€3.748

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 19:18
End of Day Share Price 2024/12/20 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Balfour Beatty plc is covered by 24 analysts. 6 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Robert ChantryBerenberg
Arnaud LehmannBofA Global Research
Michael DonnellyCanaccord Genuity