Marks and Spencer Group plc

DB:MA6A Stock Report

Market Cap: €9.2b

Marks and Spencer Group Valuation

Is MA6A 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 MA6A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MA6A (€8.8) is trading below our estimate of fair value (€14.9)

Significantly Below Fair Value: MA6A is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for MA6A?

Key metric: As MA6A is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MA6A. This is calculated by dividing MA6A's market cap by their current earnings.
What is MA6A's PE Ratio?
PE Ratio15.1x
EarningsUK£505.30m
Market CapUK£7.65b

Price to Earnings Ratio vs Peers

How does MA6A's PE Ratio compare to its peers?

The above table shows the PE ratio for MA6A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20x
HAW Hawesko Holding
19.8x19.4%€205.7m
MSH WASGAU Produktions & Handels
14.3xn/a€59.4m
2912 President Chain Store
20.7x1.9%NT$279.7b
SHP Shoprite Holdings
25.3x11.7%R165.9b
MA6A Marks and Spencer Group
15.1x7.1%€7.7b

Price-To-Earnings vs Peers: MA6A is good value based on its Price-To-Earnings Ratio (15.1x) compared to the peer average (20x).


Price to Earnings Ratio vs Industry

How does MA6A's PE Ratio compare vs other companies in the European Consumer Retailing Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MA6A 15.1xIndustry Avg. 14.8xNo. of Companies9PE0816243240+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MA6A is expensive based on its Price-To-Earnings Ratio (15.1x) compared to the European Consumer Retailing industry average (14.9x).


Price to Earnings Ratio vs Fair Ratio

What is MA6A'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.

MA6A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MA6A's Price-To-Earnings Fair Ratio for valuation analysis.


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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