RS Group plc

DB:ECN Stock Report

Market Cap: €4.2b

RS Group Valuation

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

Below Fair Value: ECN (€8.69) is trading below our estimate of fair value (€9.97)

Significantly Below Fair Value: ECN 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 ECN?

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

The above table shows the Price to Earnings ratio for ECN. This is calculated by dividing ECN's market cap by their current earnings.
What is ECN's PE Ratio?
PE Ratio20.5x
EarningsUK£169.70m
Market CapUK£3.48b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ECN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.5x
BNR Brenntag
16.3x15.6%€8.9b
HMU HMS Bergbau
10.4x8.0%€131.8m
KGX KION GROUP
13.1x17.4%€4.4b
NWX Nordwest Handel
6.1xn/a€67.3m
ECN RS Group
20.5x18.4%€3.5b

Price-To-Earnings vs Peers: ECN is expensive based on its Price-To-Earnings Ratio (20.5x) compared to the peer average (11.5x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ECN 20.5xIndustry Avg. 14.4xNo. of Companies10PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ECN is expensive based on its Price-To-Earnings Ratio (20.5x) compared to the European Trade Distributors industry average (14.5x).

Price to Earnings Ratio vs Fair Ratio

What is ECN'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.

ECN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.5x
Fair PE Ratio19x

Price-To-Earnings vs Fair Ratio: ECN is expensive based on its Price-To-Earnings Ratio (20.5x) compared to the estimated Fair Price-To-Earnings Ratio (19x).

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 ECN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€8.69
€10.08
+16.1%
7.7%€11.97€8.98n/a15
Nov ’25€8.16
€10.12
+24.0%
7.9%€12.01€9.00n/a14
Oct ’25€9.77
€10.21
+4.5%
8.6%€12.01€8.77n/a14
Sep ’25€9.18
€9.86
+7.5%
7.5%€11.61€8.65n/a14
Aug ’25€9.55
€9.86
+3.3%
7.5%€11.61€8.65n/a14
Jul ’25€8.22
€9.97
+21.3%
8.7%€11.60€8.64n/a14
Jun ’25€8.27
€10.09
+22.0%
8.5%€11.51€8.58n/a13
May ’25€8.58
€10.07
+17.4%
10.6%€12.21€7.79n/a13
Apr ’25€8.45
€10.37
+22.7%
11.0%€12.59€7.85n/a13
Mar ’25€8.75
€10.43
+19.2%
11.3%€12.57€7.83n/a13
Feb ’25€9.10
€10.32
+13.4%
11.7%€12.58€7.84n/a14
Jan ’25€9.45
€10.18
+7.7%
11.5%€13.44€8.81n/a13
Dec ’24€8.60
€10.18
+18.3%
11.5%€13.44€8.81n/a13
Nov ’24€7.75
€11.05
+42.5%
18.2%€16.74€8.83€8.1613
Oct ’24€8.35
€11.29
+35.2%
18.8%€16.90€8.91€9.7713
Sep ’24€8.80
€11.58
+31.6%
18.0%€17.06€9.00€9.1813
Aug ’24€9.05
€11.89
+31.4%
17.5%€17.04€8.99€9.5515
Jul ’24€8.55
€12.26
+43.4%
15.9%€16.91€9.38€8.2215
Jun ’24€9.30
€12.44
+33.8%
15.6%€16.81€9.33€8.2715
May ’24€10.30
€12.78
+24.1%
17.5%€16.89€9.35€8.5814
Apr ’24€10.30
€13.06
+26.8%
16.4%€16.83€9.39€8.4513
Mar ’24€11.10
€12.98
+16.9%
16.4%€16.70€9.31€8.7513
Feb ’24€10.60
€13.00
+22.7%
16.3%€16.55€9.23€9.1012
Jan ’24€10.20
€13.49
+32.3%
15.7%€16.87€9.41€9.4512
Dec ’23€10.70
€13.38
+25.0%
16.0%€16.83€9.39€8.6012
Nov ’23€11.20
€14.03
+25.3%
13.3%€16.92€11.51€7.7512

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

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