Supermarket Income REIT plc

DB:DU9 Stock Report

Market Cap: €1.1b

Supermarket Income REIT Valuation

Is DU9 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DU9 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DU9 (€0.82) is trading below our estimate of fair value (€1.08)

Significantly Below Fair Value: DU9 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DU9?

Key metric: As DU9 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for DU9. This is calculated by dividing DU9's market cap by their current revenue.
What is DU9's PS Ratio?
PS Ratio8.3x
SalesUK£107.23m
Market CapUK£887.32m

Price to Sales Ratio vs Peers

How does DU9's PS Ratio compare to its peers?

The above table shows the PS ratio for DU9 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.1x
HABA Hamborner REIT
5x1.7%€525.5m
DKG Deutsche Konsum REIT-AG
1.3x-12.7%€141.7m
AOX alstria office REIT-AG
5.1x-1.5%€1.2b
VKE Vukile Property Fund
4.9x1.8%R19.6b
DU9 Supermarket Income REIT
8.3x5.3%€887.3m

Price-To-Sales vs Peers: DU9 is expensive based on its Price-To-Sales Ratio (8.3x) compared to the peer average (4.1x).

Price to Sales Ratio vs Industry

How does DU9's PS Ratio compare vs other companies in the European Retail REITs Industry?

0 CompaniesPrice / SalesEstimated GrowthMarket Cap
DU9 8.3xIndustry Avg. 5.7xNo. of Companies7PS03.26.49.612.816+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: DU9 is expensive based on its Price-To-Sales Ratio (8.3x) compared to the European Retail REITs industry average (5.7x).

Price to Sales Ratio vs Fair Ratio

What is DU9's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DU9 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio8.3x
Fair PS Ratio12.3x

Price-To-Sales vs Fair Ratio: DU9 is good value based on its Price-To-Sales Ratio (8.3x) compared to the estimated Fair Price-To-Sales Ratio (12.3x).

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 DU9 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€0.81
€0.97
+19.4%
15.4%€1.20€0.72n/a6
Nov ’25€0.85
€0.99
+16.0%
13.9%€1.20€0.76n/a6
Oct ’25€0.93
€0.98
+5.1%
13.9%€1.19€0.75n/a6
Sep ’25€0.84
€0.95
+12.3%
15.1%€1.16€0.70n/a6
Aug ’25€0.86
€0.96
+11.7%
15.1%€1.18€0.71n/a6
Jul ’25€0.84
€0.96
+14.4%
15.1%€1.18€0.71n/a6
Jun ’25€0.85
€0.98
+14.7%
18.5%€1.28€0.70n/a6
May ’25€0.89
€0.99
+10.8%
18.5%€1.29€0.70n/a6
Apr ’25€0.85
€1.03
+21.0%
13.6%€1.29€0.88n/a6
Mar ’25€0.85
€1.06
+24.8%
15.6%€1.34€0.88n/a6
Feb ’25€0.91
€1.07
+17.1%
14.1%€1.35€0.88n/a7
Jan ’25€0.96
€1.04
+8.0%
15.0%€1.34€0.87n/a7
Dec ’24€0.91
€1.04
+13.9%
15.2%€1.34€0.88n/a7
Nov ’24€0.80
€1.09
+35.7%
17.1%€1.32€0.86€0.859
Oct ’24€0.82
€1.10
+32.9%
18.2%€1.33€0.86€0.938
Sep ’24€0.86
€1.19
+37.5%
21.7%€1.57€0.87€0.848
Aug ’24€0.85
€1.20
+41.6%
21.0%€1.58€0.88€0.868
Jul ’24€0.81
€1.21
+48.2%
19.7%€1.57€0.93€0.848
Jun ’24€0.90
€1.20
+34.4%
18.9%€1.55€0.96€0.858
May ’24€0.94
€1.21
+28.9%
15.6%€1.53€0.96€0.899
Apr ’24€0.93
€1.24
+32.9%
14.4%€1.53€0.97€0.859
Mar ’24€0.99
€1.24
+24.1%
14.3%€1.53€0.96€0.859
Feb ’24€1.05
€1.30
+23.9%
16.1%€1.56€0.96€0.919
Jan ’24€1.11
€1.36
+22.1%
14.1%€1.60€1.12€0.969
Dec ’23€1.16
€1.35
+16.2%
13.0%€1.58€1.10€0.919
Nov ’23€1.14
€1.36
+19.4%
13.0%€1.58€1.09€0.809

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

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