Derwent London Plc

DB:DVK Stock Report

Market Cap: €2.7b

Derwent London Valuation

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

Below Fair Value: DVK (€23.2) is trading above our estimate of fair value (€19.67)

Significantly Below Fair Value: DVK is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for DVK. This is calculated by dividing DVK's market cap by their current revenue.
What is DVK's PS Ratio?
PS Ratio7.9x
SalesUK£278.60m
Market CapUK£2.21b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for DVK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average5.6x
AOX alstria office REIT-AG
5.6x-1.5%€1.4b
8954 ORIX JREIT
8.1xn/aJP¥443.8b
HABA Hamborner REIT
4.8x-1.2%€510.8m
HIW Highwoods Properties
3.8x2.5%US$3.3b
DVK Derwent London
7.9x-1.4%€2.2b

Price-To-Sales vs Peers: DVK is expensive based on its Price-To-Sales Ratio (7.9x) compared to the peer average (5.6x).

Price to Sales Ratio vs Industry

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

2 CompaniesPrice / SalesEstimated GrowthMarket Cap
DVK 7.9xIndustry Avg. 7.9xNo. of Companies3PS048121620+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: DVK is expensive based on its Price-To-Sales Ratio (7.9x) compared to the European Office REITs industry average (7.9x).

Price to Sales Ratio vs Fair Ratio

What is DVK'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.

DVK PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio7.9x
Fair PS Ratio9.6x

Price-To-Sales vs Fair Ratio: DVK is good value based on its Price-To-Sales Ratio (7.9x) compared to the estimated Fair Price-To-Sales Ratio (9.6x).

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 DVK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€23.20
€30.64
+32.1%
10.8%€36.15€24.57n/a16
Dec ’25€25.00
€30.58
+22.3%
10.9%€36.01€24.48n/a16
Nov ’25€25.60
€30.66
+19.8%
10.7%€36.09€24.66n/a16
Oct ’25€29.00
€29.58
+2.0%
15.1%€35.99€17.43n/a16
Sep ’25€27.20
€28.71
+5.6%
13.6%€32.68€17.26n/a16
Aug ’25€27.20
€28.38
+4.3%
13.3%€32.48€17.16n/a16
Jul ’25€26.20
€28.39
+8.4%
13.4%€32.45€17.15n/a16
Jun ’25€26.80
€27.99
+4.4%
13.6%€32.31€17.07n/a17
May ’25€23.80
€27.82
+16.9%
13.5%€32.19€17.01n/a17
Apr ’25€24.80
€27.64
+11.5%
14.1%€32.12€16.97n/a17
Mar ’25€22.60
€27.73
+22.7%
13.9%€31.55€16.98n/a17
Feb ’25€24.40
€28.33
+16.1%
15.1%€34.00€17.03n/a17
Jan ’25€27.40
€26.88
-1.9%
16.8%€33.36€16.72n/a15
Dec ’24€24.20
€27.29
+12.8%
17.5%€33.89€16.98€25.0015
Nov ’24€20.60
€27.21
+32.1%
18.4%€34.98€16.67€25.6017
Oct ’24€21.20
€27.95
+31.8%
18.1%€35.20€16.77€29.0017
Sep ’24€21.20
€29.90
+41.1%
19.6%€39.50€16.88€27.2017
Aug ’24€24.60
€30.49
+24.0%
18.2%€39.67€16.96€27.2017
Jul ’24€24.80
€31.71
+27.9%
12.8%€39.75€23.97€26.2017
Jun ’24€24.60
€31.39
+27.6%
12.7%€39.00€23.52€26.8017
May ’24€26.60
€31.48
+18.3%
12.5%€38.68€23.33€23.8018
Apr ’24€26.40
€31.48
+19.2%
12.5%€38.68€23.33€24.8018
Mar ’24€29.00
€30.67
+5.7%
12.5%€38.19€23.03€22.6018
Feb ’24€28.80
€30.02
+4.2%
12.9%€38.53€23.24€24.4018
Jan ’24€28.00
€30.25
+8.0%
13.1%€38.97€22.93€27.4018
Dec ’23€27.20
€30.84
+13.4%
13.1%€39.57€23.28€24.2018

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/23 05:06
End of Day Share Price 2024/12/20 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Derwent London Plc is covered by 40 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Paul MayBarclays
Aaron GuyBarclays
Miranda CockburnBerenberg