Intertek Group Valuation

Q: What is the Fair Price of IT10 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

IT10 (€53.5) is trading below our estimate of [[fair value]] (€78.4)

Is IT10 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 IT10 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IT10 (€53.5) is trading below our estimate of fair value (€78.4)

Significantly Below Fair Value: IT10 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IT10?

Key metric: As IT10 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for IT10. This is calculated by dividing IT10's market cap by their current earnings.
What is IT10's PE Ratio?
PE Ratio	23.5x
Earnings	UK£308.70m
Market Cap	UK£7.25b

IT10 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/Revenue	2.5x
Enterprise Value/EBITDA	11.5x
PEG Ratio	2.3x

Price to Earnings Ratio vs Peers

How does IT10's PE Ratio compare to its peers?

The above table shows the PE ratio for IT10 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	19.2x
BDT Bertrandt	10.7x	64.3%	€182.4m
GBF Bilfinger	7.2x	2.3%	€1.7b
CACI CACI International	23.1x	8.0%	US$10.5b
ULS UL Solutions	35.7x	8.9%	US$10.8b
IT10 Intertek Group	23.5x	10.2%	€7.3b

Price-To-Earnings vs Peers: IT10 is expensive based on its Price-To-Earnings Ratio (23.5x) compared to the peer average (19.2x).

Price to Earnings Ratio vs Industry

How does IT10's PE Ratio compare vs other companies in the European Professional Services Industry?

4 Companies	Price / Earnings	Estimated Growth	Market Cap

4 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: IT10 is expensive based on its Price-To-Earnings Ratio (23.5x) compared to the European Professional Services industry average (18.3x).

Price to Earnings Ratio vs Fair Ratio

What is IT10'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.

IT10 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	23.5x
Fair PE Ratio	13.7x

Price-To-Earnings vs Fair Ratio: IT10 is expensive based on its Price-To-Earnings Ratio (23.5x) compared to the estimated Fair Price-To-Earnings Ratio (13.7x).

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.