Watches of Switzerland Group PLC

DB:5WS Stock Report

Market Cap: €1.3b

Watches of Switzerland Group Valuation

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

Below Fair Value: 5WS (€5.25) is trading below our estimate of fair value (€11.44)

Significantly Below Fair Value: 5WS is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 5WS?

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

The above table shows the Price to Earnings ratio for 5WS. This is calculated by dividing 5WS's market cap by their current earnings.
What is 5WS's PE Ratio?
PE Ratio18.1x
EarningsUK£59.10m
Market CapUK£1.07b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for 5WS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.7x
FIE Fielmann Group
23.6x18.9%€3.3b
HBH HORNBACH Holding KGaA
7.7x6.8%€1.3b
CEC Ceconomy
10.7x22.4%€1.4b
HBM HORNBACH Baumarkt
24.8xn/a€1.8b
5WS Watches of Switzerland Group
18.1x19.6%€1.1b

Price-To-Earnings vs Peers: 5WS is expensive based on its Price-To-Earnings Ratio (18.1x) compared to the peer average (16.7x).

Price to Earnings Ratio vs Industry

How does 5WS's PE Ratio compare vs other companies in the European Specialty Retail Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
5WS 18.1xIndustry Avg. 16.0xNo. of Companies14PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 5WS is expensive based on its Price-To-Earnings Ratio (18.1x) compared to the European Specialty Retail industry average (16.7x).

Price to Earnings Ratio vs Fair Ratio

What is 5WS'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.

5WS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.1x
Fair PE Ratio16.7x

Price-To-Earnings vs Fair Ratio: 5WS is expensive based on its Price-To-Earnings Ratio (18.1x) compared to the estimated Fair Price-To-Earnings Ratio (16.7x).

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 5WS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€5.25
€5.91
+12.5%
13.5%€7.42€4.79n/a11
Nov ’25€4.76
€5.93
+24.7%
14.0%€7.62€4.80n/a11
Oct ’25€5.65
€5.95
+5.4%
14.7%€7.86€4.80n/a11
Sep ’25€4.56
€5.85
+28.3%
15.3%€7.77€4.74n/a11
Aug ’25€4.76
€5.95
+24.9%
15.3%€7.73€4.72n/a11
Jul ’25€4.94
€5.92
+19.9%
15.3%€7.73€4.72n/a11
Jun ’25€4.72
€5.55
+17.5%
13.3%€6.79€4.68n/a10
May ’25€4.06
€5.62
+38.5%
17.7%€7.65€4.32n/a11
Apr ’25€4.08
€5.82
+42.7%
15.9%€7.49€4.33n/a11
Mar ’25€5.00
€5.75
+15.0%
16.0%€7.49€4.33n/a12
Feb ’25€4.32
€6.98
+61.5%
33.3%€12.13€4.69n/a11
Jan ’25€7.80
€9.32
+19.5%
17.1%€12.06€6.41n/a11
Dec ’24€7.50
€9.11
+21.5%
17.0%€11.96€6.36n/a11
Nov ’24€5.70
€8.60
+50.9%
19.6%€12.17€6.32€4.7611
Oct ’24€5.95
€9.17
+54.1%
17.3%€12.22€6.92€5.6511
Sep ’24€6.80
€10.31
+51.6%
19.7%€14.23€6.97€4.5611
Aug ’24€8.65
€11.00
+27.2%
15.3%€14.23€8.13€4.7611
Jul ’24€7.00
€11.63
+66.2%
13.4%€14.60€9.71€4.9411
Jun ’24€7.75
€11.63
+50.1%
13.4%€14.60€9.71€4.7211
May ’24€9.35
€13.20
+41.1%
12.3%€15.86€10.71€4.0610
Apr ’24€9.05
€13.35
+47.5%
11.4%€15.82€10.68€4.0810
Mar ’24€9.30
€13.48
+45.0%
10.1%€15.78€11.22€5.009
Feb ’24€10.60
€13.82
+30.4%
11.7%€17.08€11.62€4.3210
Jan ’24€9.35
€14.25
+52.4%
11.5%€17.44€11.86€7.8010
Dec ’23€11.80
€14.04
+19.0%
11.2%€17.15€11.95€7.5010
Nov ’23€8.90
€14.33
+61.0%
11.6%€17.41€11.72€5.709

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

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