ITV plc

DB:IJ7 Stock Report

Market Cap: €2.9b

ITV Valuation

Is IJ7 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 IJ7 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IJ7 (€0.75) is trading below our estimate of fair value (€2.97)

Significantly Below Fair Value: IJ7 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IJ7?

Key metric: As IJ7 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for IJ7. This is calculated by dividing IJ7's market cap by their current earnings.
What is IJ7's PE Ratio?
PE Ratio5.5x
EarningsUK£434.00m
Market CapUK£2.39b

Price to Earnings Ratio vs Peers

How does IJ7's PE Ratio compare to its peers?

The above table shows the PE ratio for IJ7 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.4x
RRTL RTL Group
9.2x-3.8%€3.7b
SAX Ströer SE KGaA
23.4x29.2%€2.7b
KA8 Klassik Radio
30.8xn/a€17.9m
M8G Verve Group
14.3x22.0%€733.2m
IJ7 ITV
5.5x-18.9%€2.4b

Price-To-Earnings vs Peers: IJ7 is good value based on its Price-To-Earnings Ratio (5.5x) compared to the peer average (19.4x).

Price to Earnings Ratio vs Industry

How does IJ7's PE Ratio compare vs other companies in the European Media Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
IJ7 5.5xIndustry Avg. 12.9xNo. of Companies16PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IJ7 is good value based on its Price-To-Earnings Ratio (5.5x) compared to the European Media industry average (12.8x).

Price to Earnings Ratio vs Fair Ratio

What is IJ7'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.

IJ7 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.5x
Fair PE Ratio11.9x

Price-To-Earnings vs Fair Ratio: IJ7 is good value based on its Price-To-Earnings Ratio (5.5x) compared to the estimated Fair Price-To-Earnings Ratio (11.9x).

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 IJ7 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€0.75
€1.09
+45.2%
21.6%€1.46€0.72n/a8
Nov ’25€0.87
€1.14
+31.1%
19.8%€1.45€0.79n/a8
Oct ’25€0.95
€1.12
+18.5%
19.6%€1.43€0.78n/a8
Sep ’25€0.93
€1.12
+20.3%
19.6%€1.43€0.78n/a8
Aug ’25€0.94
€1.14
+21.4%
18.5%€1.43€0.78n/a9
Jul ’25€0.94
€1.13
+20.2%
19.0%€1.43€0.78n/a9
Jun ’25€0.89
€1.08
+22.2%
18.5%€1.42€0.77n/a10
May ’25€0.81
€1.02
+27.1%
21.6%€1.41€0.69n/a10
Apr ’25€0.83
€1.03
+24.6%
21.3%€1.41€0.69n/a10
Mar ’25€0.63
€0.97
+53.6%
26.0%€1.41€0.63n/a10
Feb ’25€0.68
€0.97
+43.2%
27.3%€1.42€0.56n/a10
Jan ’25€0.70
€0.99
+41.6%
28.0%€1.41€0.52n/a9
Dec ’24€0.68
€1.02
+51.8%
31.0%€1.52€0.53n/a9
Nov ’24€0.71
€1.09
+53.5%
30.2%€1.62€0.57€0.879
Oct ’24€0.78
€1.09
+38.8%
28.7%€1.62€0.57€0.9510
Sep ’24€0.79
€1.11
+39.7%
27.3%€1.63€0.57€0.9311
Aug ’24€0.81
€1.11
+36.4%
27.3%€1.63€0.57€0.9411
Jul ’24€0.77
€1.10
+43.7%
29.3%€1.64€0.57€0.9410
Jun ’24€0.81
€1.10
+35.3%
27.9%€1.61€0.56€0.8911
May ’24€0.89
€1.09
+22.3%
27.4%€1.58€0.55€0.8111
Apr ’24€0.92
€1.09
+18.9%
27.6%€1.59€0.56€0.8311
Mar ’24€0.97
€1.03
+6.4%
31.8%€1.57€0.49€0.6311
Feb ’24€0.89
€1.05
+16.9%
30.5%€1.59€0.50€0.6812
Jan ’24€0.83
€1.04
+25.3%
32.1%€1.61€0.54€0.7013
Dec ’23€0.85
€1.07
+27.0%
33.9%€1.86€0.63€0.6813
Nov ’23€0.76
€1.15
+51.3%
37.1%€1.96€0.52€0.7114

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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