Temple & Webster Group Ltd

DB:2Q9 Stock Report

Market Cap: €841.0m

Temple & Webster Group Valuation

Is 2Q9 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 2Q9 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2Q9 (€6.85) is trading below our estimate of fair value (€9.06)

Significantly Below Fair Value: 2Q9 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2Q9?

Key metric: As 2Q9 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 2Q9. This is calculated by dividing 2Q9's market cap by their current revenue.
What is 2Q9's PS Ratio?
PS Ratio2.7x
SalesAU$497.84m
Market CapAU$1.35b

Price to Sales Ratio vs Peers

How does 2Q9's PS Ratio compare to its peers?

The above table shows the PS ratio for 2Q9 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.3x
H24 home24
0.4xn/a€252.4m
WEW Westwing Group
0.4x6.1%€161.3m
YOU About You Holding
0.3x7.7%€560.3m
HBH HORNBACH Holding KGaA
0.2x3.6%€1.3b
2Q9 Temple & Webster Group
2.7x15.8%€1.3b

Price-To-Sales vs Peers: 2Q9 is expensive based on its Price-To-Sales Ratio (2.7x) compared to the peer average (0.3x).

Price to Sales Ratio vs Industry

How does 2Q9's PS Ratio compare vs other companies in the DE Specialty Retail Industry?

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
CEC Ceconomy
0.06x1.1%US$1.52b
GFG Global Fashion Group
0.07x-0.5%US$54.23m
DEX Delticom
0.07x2.7%US$34.84m
49S Superdry
0.004x-1.4%US$3.12m
No more companies available in this PS range
2Q9 2.7xIndustry Avg. 0.4xNo. of Companies5PS00.40.81.21.62+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 2Q9 is expensive based on its Price-To-Sales Ratio (2.7x) compared to the European Specialty Retail industry average (0.4x).

Price to Sales Ratio vs Fair Ratio

What is 2Q9'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.

2Q9 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.7x
Fair PS Ratio0.4x

Price-To-Sales vs Fair Ratio: 2Q9 is expensive based on its Price-To-Sales Ratio (2.7x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).

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 2Q9 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€6.85
€7.85
+14.6%
6.4%€8.48€6.96n/a10
Nov ’25€6.70
€7.89
+17.8%
6.4%€8.53€7.00n/a10
Oct ’25€7.95
€7.89
-0.8%
7.3%€8.76€6.86n/a10
Sep ’25€6.95
€7.55
+8.7%
16.3%€8.77€4.08n/a11
Aug ’25€6.00
€6.80
+13.4%
15.3%€7.84€4.00n/a11
Jul ’25€5.70
€6.85
+20.2%
14.8%€7.95€4.06n/a11
Jun ’25€5.85
€6.89
+17.9%
14.8%€7.94€4.06n/a11
May ’25€6.80
€6.88
+1.1%
15.1%€7.79€3.98n/a11
Apr ’25€7.80
€6.88
-11.8%
15.1%€7.79€3.98n/a11
Mar ’25€7.25
€6.88
-5.1%
15.1%€7.79€3.98n/a11
Feb ’25€5.35
€4.88
-8.8%
14.4%€6.67€4.09n/a11
Jan ’25€5.25
€4.83
-8.0%
9.9%€5.68€4.14n/a11
Dec ’24€4.80
€4.35
-9.3%
20.0%€5.46€2.51n/a12
Nov ’24€3.44
€3.82
+11.2%
16.9%€4.80€2.48€6.7012
Oct ’24€3.58
€3.76
+5.1%
17.6%€4.71€2.44€7.9511
Sep ’24€4.14
€3.76
-9.1%
17.6%€4.71€2.44€6.9511
Aug ’24€4.00
€2.97
-25.7%
21.0%€4.28€2.37€6.0011
Jul ’24€3.50
€2.81
-19.6%
17.9%€4.04€2.28€5.7012
Jun ’24€2.92
€2.91
-0.3%
19.5%€4.06€2.29€5.8513
May ’24€2.34
€2.90
+23.9%
19.3%€3.96€2.27€6.8011
Apr ’24€2.06
€3.02
+46.7%
19.9%€4.08€2.34€7.8011
Mar ’24€2.20
€3.05
+38.5%
20.2%€4.18€2.39€7.2512
Feb ’24€3.62
€3.86
+6.5%
27.1%€6.51€2.52€5.3513
Jan ’24€2.86
€3.85
+34.8%
27.0%€6.52€2.52€5.2513
Dec ’23€3.28
€3.85
+17.5%
27.0%€6.52€2.52€4.8013
Nov ’23€3.76
€4.15
+10.4%
24.2%€6.71€2.60€3.4413

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

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