Distribution Solutions Group, Inc.

DB:LW2 Stock Report

Market Cap: €1.7b

Distribution Solutions Group Valuation

Is LW2 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of LW2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LW2 (€34.6) is trading above our estimate of fair value (€34.32)

Significantly Below Fair Value: LW2 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LW2?

Key metric: As LW2 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for LW2. This is calculated by dividing LW2's market cap by their current revenue.
What is LW2's PS Ratio?
PS Ratio1x
SalesUS$1.73b
Market CapUS$1.78b

Price to Sales Ratio vs Peers

How does LW2's PS Ratio compare to its peers?

The above table shows the PS ratio for LW2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.2x
KCO Klöckner & Co
0.07x4.8%€471.3m
BYW BayWa
0.03x9.5%€350.0m
BNR Brenntag
0.5x3.4%€8.8b
HMU HMS Bergbau
0.1x2.0%€129.0m
LW2 Distribution Solutions Group
1x9.4%€1.8b

Price-To-Sales vs Peers: LW2 is expensive based on its Price-To-Sales Ratio (1x) compared to the peer average (0.2x).

Price to Sales Ratio vs Industry

How does LW2's PS Ratio compare vs other companies in the European Trade Distributors Industry?

18 CompaniesPrice / SalesEstimated GrowthMarket Cap
LW2 1.0xIndustry Avg. 0.5xNo. of Companies18PS00.61.21.82.43+
18 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: LW2 is expensive based on its Price-To-Sales Ratio (1x) compared to the European Trade Distributors industry average (0.5x).

Price to Sales Ratio vs Fair Ratio

What is LW2's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LW2 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1x
Fair PS Ratio0.7x

Price-To-Sales vs Fair Ratio: LW2 is expensive based on its Price-To-Sales Ratio (1x) compared to the estimated Fair Price-To-Sales Ratio (0.7x).

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 LW2 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€34.60
€40.06
+15.8%
2.3%€40.99€39.13n/a2
Nov ’25€35.00
€37.42
+6.9%
2.4%€38.33€36.50n/a2
Oct ’25€34.20
€37.42
+9.4%
2.4%€38.33€36.50n/a2
Sep ’25€32.80
€37.42
+14.1%
2.4%€38.33€36.50n/a2
Jul ’25€27.40
€37.75
+37.8%
2.4%€38.67€36.83n/a2
Jun ’25€30.60
€37.75
+23.4%
2.4%€38.67€36.83n/a2
May ’25€30.60
€36.31
+18.7%
7.7%€39.10€33.52n/a2
Apr ’25€32.00
€36.31
+13.5%
7.7%€39.10€33.52n/a2
Mar ’25€28.80
€33.57
+16.6%
5.6%€35.44€31.71n/a2
Feb ’25€29.20
€33.57
+15.0%
5.6%€35.44€31.71n/a2
Jan ’25€28.80
€33.57
+16.6%
5.6%€35.44€31.71n/a2
Dec ’24€22.80
€33.57
+47.3%
5.6%€35.44€31.71n/a2
Nov ’24€28.20
€34.08
+20.9%
5.6%€35.98€32.19€35.002

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

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