DS Smith Plc

DB:1KR Stock Report

Market Cap: €9.8b

DS Smith Valuation

Is 1KR 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 1KR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1KR (€7.08) is trading below our estimate of fair value (€8.46)

Significantly Below Fair Value: 1KR is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1KR?

Key metric: As 1KR is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1KR. This is calculated by dividing 1KR's market cap by their current earnings.
What is 1KR's PE Ratio?
PE Ratio21.3x
EarningsUK£385.00m
Market CapUK£8.19b

Price to Earnings Ratio vs Peers

How does 1KR's PE Ratio compare to its peers?

The above table shows the PE ratio for 1KR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.7x
EVK Evonik Industries
35.2x33.1%€8.1b
SY1 Symrise
37.3x13.2%€14.6b
FPE3 Fuchs
18.7x8.7%€5.0b
HEI Heidelberg Materials
11.4x7.8%€21.2b
1KR DS Smith
21.3x8.3%€8.2b

Price-To-Earnings vs Peers: 1KR is good value based on its Price-To-Earnings Ratio (21.3x) compared to the peer average (25.7x).

Price to Earnings Ratio vs Industry

How does 1KR's PE Ratio compare vs other companies in the European Packaging Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
1KR 21.3xIndustry Avg. 18.7xNo. of Companies6PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1KR is expensive based on its Price-To-Earnings Ratio (21.3x) compared to the European Packaging industry average (18.7x).

Price to Earnings Ratio vs Fair Ratio

What is 1KR'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.

1KR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.3x
Fair PE Ratio17x

Price-To-Earnings vs Fair Ratio: 1KR is expensive based on its Price-To-Earnings Ratio (21.3x) compared to the estimated Fair Price-To-Earnings Ratio (17x).

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 1KR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€7.08
€6.07
-14.2%
15.7%€6.98€4.31n/a9
Nov ’25€6.46
€5.44
-15.7%
11.3%€6.59€4.32n/a9
Oct ’25€5.54
€5.25
-5.2%
9.3%€5.85€4.32n/a9
Sep ’25€5.62
€5.01
-10.8%
8.3%€5.64€4.28n/a8
Aug ’25€5.39
€4.76
-11.6%
7.9%€5.24€4.07n/a8
Jul ’25€4.91
€4.66
-5.0%
7.4%€5.20€4.04n/a8
Jun ’25€4.40
€4.64
+5.5%
7.2%€5.12€3.98n/a8
May ’25€4.11
€4.70
+14.1%
7.3%€5.16€4.01n/a8
Apr ’25€4.63
€4.41
-4.7%
9.8%€4.91€3.62n/a6
Mar ’25€3.76
€4.40
+16.9%
10.7%€4.91€3.51n/a6
Feb ’25€3.31
€4.25
+28.3%
8.4%€4.69€3.52n/a10
Jan ’25€3.60
€4.21
+16.9%
8.1%€4.62€3.46n/a11
Dec ’24€3.37
€4.04
+19.9%
12.8%€4.60€3.10n/a11
Nov ’24€3.32
€4.07
+22.5%
11.5%€4.59€3.10€6.4611
Oct ’24€3.27
€4.06
+24.3%
11.6%€4.60€3.10€5.5411
Sep ’24€3.65
€4.14
+13.3%
10.1%€4.65€3.37€5.6212
Aug ’24€3.61
€4.29
+18.8%
11.3%€5.25€3.38€5.3912
Jul ’24€3.12
€4.47
+43.3%
14.9%€5.84€3.39€4.9113
Jun ’24€3.53
€4.50
+27.4%
13.4%€5.70€3.65€4.4012
May ’24€3.45
€4.50
+30.4%
13.4%€5.70€3.65€4.1112
Apr ’24€3.58
€4.54
+26.8%
13.1%€5.69€3.53€4.6311
Mar ’24€3.84
€4.62
+20.4%
10.9%€5.66€3.85€3.7611
Feb ’24€4.00
€4.58
+14.4%
11.5%€5.67€3.86€3.3111
Jan ’24€3.64
€4.51
+24.0%
13.3%€5.73€3.55€3.6010
Dec ’23€3.52
€4.20
+19.3%
15.1%€5.72€3.20€3.3711
Nov ’23€3.38
€4.24
+25.3%
15.0%€5.72€3.20€3.3211

Analyst Forecast: Target price is lower than the current share price.

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