Lookers Valuation

Is LO6A undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 LO6A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LO6A (€1.48) is trading below our estimate of fair value (€2.11)

Significantly Below Fair Value: LO6A is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for LO6A?

Key metric: As LO6A is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for LO6A. This is calculated by dividing LO6A's market cap by their current earnings.
What is LO6A's PE Ratio?
PE Ratio7.9x
EarningsUK£63.90m
Market CapUK£503.23m

Price to Earnings Ratio vs Peers

How does LO6A's PE Ratio compare to its peers?

The above table shows the PE ratio for LO6A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12x
DEX Delticom
5.1x18.8%€32.6m
HBH HORNBACH Holding KGaA
7.7x6.8%€1.3b
CEC Ceconomy
10.7x22.4%€1.4b
HBM HORNBACH Baumarkt
24.8xn/a€1.8b
LO6A Lookers
7.9x-1.8%€503.2m

Price-To-Earnings vs Peers: LO6A is good value based on its Price-To-Earnings Ratio (7.9x) compared to the peer average (26.1x).


Price to Earnings Ratio vs Industry

How does LO6A's PE Ratio compare vs other companies in the European Specialty Retail Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
LO6A 7.9xIndustry Avg. 16.7xNo. of Companies14PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LO6A is good value based on its Price-To-Earnings Ratio (7.9x) compared to the European Specialty Retail industry average (16.7x).


Price to Earnings Ratio vs Fair Ratio

What is LO6A'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.

LO6A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.9x
Fair PE Ratio12.2x

Price-To-Earnings vs Fair Ratio: LO6A is good value based on its Price-To-Earnings Ratio (7.9x) compared to the estimated Fair Price-To-Earnings Ratio (12.2x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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