Legrand Valuation

Is LRC0 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 LRC0 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LRC0 (€19.5) is trading below our estimate of fair value (€24.49)

Significantly Below Fair Value: LRC0 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for LRC0?

Other financial metrics that can be useful for relative valuation.

LRC0 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.4x
Enterprise Value/EBITDA15.9x
PEG Ratio2.6x

Price to Earnings Ratio vs Peers

How does LRC0's PE Ratio compare to its peers?

The above table shows the PE ratio for LRC0 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.6x
OSR OSRAM Licht
80.9xn/a€4.8b
ENR Siemens Energy
52.8x21.2%€30.5b
SGL SGL Carbon
7.9x18.5%€544.1m
DTG Daimler Truck Holding
8.7x11.6%€29.2b
LRC0 Legrand
24.4x9.3%€25.5b

Price-To-Earnings vs Peers: LRC0 is good value based on its Price-To-Earnings Ratio (24.4x) compared to the peer average (37.6x).


Price to Earnings Ratio vs Industry

How does LRC0's PE Ratio compare vs other companies in the European Electrical Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a25.7%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a25.7%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: LRC0 is expensive based on its Price-To-Earnings Ratio (24.4x) compared to the European Electrical industry average (17.1x).


Price to Earnings Ratio vs Fair Ratio

What is LRC0'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.

LRC0 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.4x
Fair PE Ratio19.2x

Price-To-Earnings vs Fair Ratio: LRC0 is expensive based on its Price-To-Earnings Ratio (24.4x) compared to the estimated Fair Price-To-Earnings Ratio (19.2x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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