Diploma PLC

DB:DP9 Stock Report

Market Cap: €6.6b

Diploma Valuation

Is DP9 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 DP9 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€44.66
Fair Value
7.0% overvalued intrinsic discount
14
Number of Analysts

Below Fair Value: DP9 (€47.8) is trading above our estimate of fair value (€44.66)

Significantly Below Fair Value: DP9 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DP9?

Key metric: As DP9 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DP9. This is calculated by dividing DP9's market cap by their current earnings.
What is DP9's PE Ratio?
PE Ratio42.6x
EarningsUK£129.30m
Market CapUK£5.50b

Price to Earnings Ratio vs Peers

How does DP9's PE Ratio compare to its peers?

The above table shows the PE ratio for DP9 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21x
BNR Brenntag
14.6x15.8%€8.0b
HMU HMS Bergbau
11.1x8.0%€140.9m
RAA RATIONAL
38.5x7.1%€9.1b
G1A GEA Group
19.6x8.2%€8.0b
DP9 Diploma
42.6x13.9%€5.5b

Price-To-Earnings vs Peers: DP9 is expensive based on its Price-To-Earnings Ratio (42.6x) compared to the peer average (21x).

Price to Earnings Ratio vs Industry

How does DP9's PE Ratio compare vs other companies in the European Trade Distributors Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
DP9 42.6xIndustry Avg. 13.8xNo. of Companies12PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DP9 is expensive based on its Price-To-Earnings Ratio (42.6x) compared to the European Trade Distributors industry average (13.8x).

Price to Earnings Ratio vs Fair Ratio

What is DP9'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.

DP9 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio42.6x
Fair PE Ratio18.9x

Price-To-Earnings vs Fair Ratio: DP9 is expensive based on its Price-To-Earnings Ratio (42.6x) compared to the estimated Fair Price-To-Earnings Ratio (18.9x).

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 DP9 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€47.80
€56.71
+18.6%
10.2%€65.54€46.48n/a14
Jan ’26€50.00
€57.44
+14.9%
10.2%€66.38€47.07n/a14
Dec ’25€52.50
€56.10
+6.9%
9.8%€62.57€46.93n/a13
Nov ’25€50.50
€55.08
+9.1%
10.5%€62.43€45.62n/a13
Oct ’25€53.50
€54.57
+2.0%
10.3%€62.44€45.63n/a13
Sep ’25€52.50
€50.42
-4.0%
10.1%€58.20€41.82n/a12
Aug ’25€52.00
€51.69
-0.6%
10.4%€59.47€42.73n/a11
Jul ’25€48.60
€50.91
+4.8%
9.7%€58.62€42.12n/a11
Jun ’25€47.40
€50.91
+7.4%
9.7%€58.62€42.12n/a11
May ’25€44.00
€47.07
+7.0%
6.7%€51.33€40.83n/a11
Apr ’25€43.20
€46.52
+7.7%
7.3%€51.48€40.95n/a11
Mar ’25€39.80
€43.63
+9.6%
6.0%€46.89€36.34n/a11
Feb ’25€39.00
€42.97
+10.2%
6.5%€46.63€36.14n/a11
Jan ’25€41.00
€42.28
+3.1%
6.0%€45.24€35.82€50.0011
Dec ’24€40.40
€42.28
+4.7%
6.0%€45.24€35.82€52.5011
Nov ’24€32.20
€39.81
+23.6%
6.4%€43.00€33.48€50.5011
Oct ’24€34.40
€39.91
+16.0%
6.6%€43.43€33.81€53.5012
Sep ’24€36.00
€39.81
+10.6%
6.3%€43.37€33.99€52.5011
Aug ’24€37.20
€39.37
+5.8%
6.6%€42.87€33.60€52.008
Jul ’24€34.00
€36.53
+7.4%
10.9%€42.53€27.59€48.6012
Jun ’24€34.60
€36.53
+5.6%
10.9%€42.53€27.59€47.4012
May ’24€30.20
€35.14
+16.4%
13.0%€42.37€25.77€44.0012
Apr ’24€31.40
€35.14
+11.9%
13.0%€42.37€25.77€43.2012
Mar ’24€31.40
€34.84
+11.0%
13.9%€42.31€24.58€39.8012
Feb ’24€30.80
€34.84
+13.1%
13.9%€42.31€24.58€39.0012
Jan ’24€33.00
€34.65
+5.0%
14.3%€42.45€24.67€41.0011
Analyst Price Target
Consensus Narrative from 14 Analysts
€55.43
Fair Value
13.8% undervalued intrinsic discount
14
Number of Analysts

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 Analysis2025/01/13 10:18
End of Day Share Price 2025/01/13 00:00
Earnings2024/09/30
Annual Earnings2024/09/30

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

Diploma PLC is covered by 30 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jane SparrowBarclays
James RosenthalBarclays
James BaylissBerenberg