LondonMetric Property Plc

DB:5PP Stock Report

Market Cap: €4.8b

LondonMetric Property Valuation

Is 5PP 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 5PP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 5PP (€2.32) is trading below our estimate of fair value (€2.86)

Significantly Below Fair Value: 5PP 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 5PP?

Key metric: As 5PP is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 5PP. This is calculated by dividing 5PP's market cap by their current earnings.
What is 5PP's PE Ratio?
PE Ratio19.6x
EarningsUK£201.50m
Market CapUK£3.96b

Price to Earnings Ratio vs Peers

How does 5PP's PE Ratio compare to its peers?

The above table shows the PE ratio for 5PP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.5x
BLND British Land
23.1x20.1%UK£3.9b
3462 Nomura Real Estate Master Fund
21.6x-4.0%JP¥665.7b
FUNO 11 Fibra UNO
7x-1.4%Mex$81.0b
LAND Land Securities Group
42.4x25.9%UK£4.5b
5PP LondonMetric Property
19.6x15.3%€4.0b

Price-To-Earnings vs Peers: 5PP is good value based on its Price-To-Earnings Ratio (19.6x) compared to the peer average (23.6x).

Price to Earnings Ratio vs Industry

How does 5PP's PE Ratio compare vs other companies in the European REITs Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
5PP 19.6xIndustry Avg. 21.9xNo. of Companies9PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 5PP is good value based on its Price-To-Earnings Ratio (19.6x) compared to the European REITs industry average (21.9x).

Price to Earnings Ratio vs Fair Ratio

What is 5PP'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.

5PP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.6x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 5PP'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?

The above table shows the analyst 5PP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€2.32
€2.74
+17.9%
5.1%€3.02€2.52n/a10
Nov ’25€2.29
€2.77
+20.8%
5.6%€3.01€2.52n/a10
Oct ’25€2.44
€2.77
+13.5%
5.6%€3.01€2.52n/a10
Sep ’25€2.33
€2.73
+17.0%
6.3%€2.98€2.43n/a10
Aug ’25€2.37
€2.73
+15.0%
6.3%€2.98€2.43n/a10
Jul ’25€2.24
€2.68
+19.6%
5.9%€2.94€2.41n/a9
Jun ’25€2.38
€2.58
+8.7%
7.5%€2.87€2.16n/a10
May ’25€2.28
€2.60
+14.0%
7.5%€2.89€2.17n/a10
Apr ’25€2.30
€2.59
+12.6%
7.1%€2.81€2.17n/a10
Mar ’25€2.10
€2.33
+10.8%
13.0%€2.80€1.86n/a7
Feb ’25€2.26
€2.19
-3.0%
8.1%€2.34€1.86n/a6
Jan ’25€2.22
€2.15
-3.0%
8.0%€2.30€1.83n/a6
Dec ’24€2.06
€2.23
+8.4%
8.5%€2.53€1.83n/a11
Nov ’24€1.88
€2.34
+24.6%
12.4%€2.93€1.83€2.2912
Oct ’24€1.92
€2.42
+25.8%
11.5%€2.97€1.94€2.4411
Sep ’24€2.10
€2.47
+17.6%
15.2%€3.25€1.94€2.3311
Aug ’24€2.14
€2.44
+14.0%
17.7%€3.23€1.93€2.378
Jul ’24€1.87
€2.44
+30.5%
17.7%€3.23€1.93€2.248
Jun ’24€2.04
€2.40
+17.8%
17.1%€3.20€1.91€2.388
May ’24€2.10
€2.34
+11.6%
15.2%€3.16€1.89€2.2811
Apr ’24€1.96
€2.34
+19.6%
15.2%€3.16€1.89€2.3011
Mar ’24€2.12
€2.31
+9.2%
14.3%€3.12€1.87€2.1012
Feb ’24€2.12
€2.34
+10.6%
15.8%€3.16€1.89€2.2612
Jan ’24€1.94
€2.38
+22.7%
16.9%€3.16€1.89€2.2212
Dec ’23€1.97
€2.55
+29.3%
19.3%€3.46€1.91€2.0612
Nov ’23€2.14
€2.76
+28.9%
18.6%€3.49€1.92€1.8812

Analyst Forecast: Target price is less than 20% higher than the current share price.

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