Intertek Group plc

DB:IT1 Stock Report

Market Cap: €9.1b

Intertek Group Valuation

Is IT1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 IT1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IT1 (€56.35) is trading below our estimate of fair value (€80.77)

Significantly Below Fair Value: IT1 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IT1?

Key metric: As IT1 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for IT1. This is calculated by dividing IT1's market cap by their current earnings.
What is IT1's PE Ratio?
PE Ratio24.5x
EarningsUK£308.70m
Market CapUK£7.56b

Price to Earnings Ratio vs Peers

How does IT1's PE Ratio compare to its peers?

The above table shows the PE ratio for IT1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.8x
GBF Bilfinger
7.6x2.2%€1.7b
CACI CACI International
20.1x8.4%US$9.1b
ULS UL Solutions
33.8x8.9%US$10.2b
BVI Bureau Veritas
25.6x9.9%€12.9b
IT1 Intertek Group
24.5x12.6%€7.6b

Price-To-Earnings vs Peers: IT1 is expensive based on its Price-To-Earnings Ratio (24.5x) compared to the peer average (21.7x).

Price to Earnings Ratio vs Industry

How does IT1's PE Ratio compare vs other companies in the European Professional Services Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
IT1 24.5xIndustry Avg. 18.5xNo. of Companies12PE01224364860+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IT1 is expensive based on its Price-To-Earnings Ratio (24.5x) compared to the European Professional Services industry average (18.5x).

Price to Earnings Ratio vs Fair Ratio

What is IT1'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.

IT1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.5x
Fair PE Ratio14x

Price-To-Earnings vs Fair Ratio: IT1 is expensive based on its Price-To-Earnings Ratio (24.5x) compared to the estimated Fair Price-To-Earnings Ratio (14x).

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 IT1 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€56.35
€66.45
+17.9%
10.0%€78.99€51.74n/a17
Dec ’25€56.30
€66.06
+17.3%
10.1%€78.60€51.48n/a17
Nov ’25€56.15
€65.48
+16.6%
10.2%€78.10€51.15n/a17
Oct ’25€61.75
€65.55
+6.2%
10.8%€80.07€48.63n/a16
Sep ’25€58.70
€63.10
+7.5%
13.3%€78.60€43.08n/a17
Aug ’25€58.35
€63.23
+8.4%
12.5%€74.99€43.69n/a17
Jul ’25€56.55
€63.23
+11.8%
12.5%€74.99€43.69n/a17
Jun ’25€55.60
€62.37
+12.2%
11.8%€70.51€43.48n/a17
May ’25€57.65
€60.36
+4.7%
12.1%€69.68€42.97n/a17
Apr ’25€58.50
€58.46
-0.06%
13.2%€68.92€43.22n/a17
Mar ’25€53.50
€54.92
+2.6%
12.3%€66.74€42.15n/a16
Feb ’25€53.00
€55.05
+3.9%
12.3%€66.89€42.25n/a17
Jan ’25€49.20
€52.40
+6.5%
13.2%€65.81€39.26n/a17
Dec ’24€46.20
€51.72
+11.9%
13.7%€65.94€39.33€56.3017
Nov ’24€43.60
€52.22
+19.8%
13.1%€65.53€41.39€56.1517
Oct ’24€47.60
€52.97
+11.3%
12.8%€65.78€41.54€61.7517
Sep ’24€48.60
€53.39
+9.9%
12.7%€66.60€42.06€58.7017
Aug ’24€50.50
€53.05
+5.1%
12.3%€66.30€41.87€58.3518
Jul ’24€49.60
€52.82
+6.5%
12.8%€66.16€41.78€56.5518
Jun ’24€49.00
€52.73
+7.6%
12.8%€65.93€41.64€55.6018
May ’24€47.60
€50.95
+7.0%
12.3%€62.30€40.21€57.6518
Apr ’24€46.20
€52.51
+13.7%
12.2%€65.85€41.23€58.5016
Mar ’24€47.20
€51.83
+9.8%
12.5%€64.81€40.58€53.5016
Feb ’24€50.00
€51.53
+3.1%
12.5%€65.46€40.98€53.0015
Jan ’24€45.40
€52.28
+15.2%
13.8%€67.97€40.78€49.2016
Dec ’23€48.00
€53.74
+12.0%
13.4%€69.71€41.82€46.2017

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 Analysis2024/12/26 14:50
End of Day Share Price 2024/12/23 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

Intertek Group plc is covered by 43 analysts. 17 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
James RosenthalBarclays
Paul Daniel SullivanBarclays
Adam BarrassBerenberg