Signet Jewelers Limited

DB:SZ2 Stock Report

Market Cap: €4.3b

Signet Jewelers Valuation

Is SZ2 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 SZ2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SZ2 (€98.02) is trading below our estimate of fair value (€243.04)

Significantly Below Fair Value: SZ2 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SZ2?

Key metric: As SZ2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SZ2. This is calculated by dividing SZ2's market cap by their current earnings.
What is SZ2's PE Ratio?
PE Ratio9.6x
EarningsUS$479.00m
Market CapUS$4.52b

Price to Earnings Ratio vs Peers

How does SZ2's PE Ratio compare to its peers?

The above table shows the PE ratio for SZ2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.4x
FIE Fielmann Group
23.8x18.9%€3.4b
ZAL Zalando
37.5x21.9%€7.7b
HBM HORNBACH Baumarkt
25xn/a€1.8b
CEC Ceconomy
11.1x22.4%€1.5b
SZ2 Signet Jewelers
9.6x9.2%€4.5b

Price-To-Earnings vs Peers: SZ2 is good value based on its Price-To-Earnings Ratio (9.6x) compared to the peer average (24.4x).

Price to Earnings Ratio vs Industry

How does SZ2's PE Ratio compare vs other companies in the European Specialty Retail Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SZ2 9.6xIndustry Avg. 16.1xNo. of Companies12PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SZ2 is good value based on its Price-To-Earnings Ratio (9.6x) compared to the European Specialty Retail industry average (16.3x).

Price to Earnings Ratio vs Fair Ratio

What is SZ2'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.

SZ2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.6x
Fair PE Ratio13.6x

Price-To-Earnings vs Fair Ratio: SZ2 is good value based on its Price-To-Earnings Ratio (9.6x) compared to the estimated Fair Price-To-Earnings Ratio (13.6x).

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 SZ2 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€98.02
€105.19
+7.3%
15.1%€129.58€82.89n/a5
Nov ’25€84.26
€102.35
+21.5%
15.1%€126.09€80.66n/a5
Oct ’25€85.50
€98.76
+15.5%
15.3%€122.77€78.53n/a5
Sep ’25€75.90
€104.07
+37.1%
13.1%€129.64€93.88n/a5
Aug ’25€77.48
€112.19
+44.8%
11.9%€135.11€97.84n/a5
Jul ’25€82.98
€112.19
+35.2%
11.9%€135.11€97.84n/a5
Jun ’25€97.40
€114.85
+17.9%
12.0%€141.69€102.54n/a5
May ’25€95.06
€112.83
+18.7%
11.2%€140.24€101.49n/a6
Apr ’25€91.60
€105.42
+15.1%
9.2%€118.23€92.37n/a6
Mar ’25€94.00
€105.24
+12.0%
13.5%€125.86€82.08n/a5
Feb ’25€91.90
€105.24
+14.5%
13.5%€125.86€82.08n/a5
Jan ’25€97.20
€96.72
-0.5%
11.5%€108.67€81.50n/a5
Dec ’24€75.10
€82.88
+10.4%
7.5%€91.88€75.34n/a5
Nov ’24€65.90
€81.69
+24.0%
8.3%€92.83€76.12€84.265
Oct ’24€69.00
€81.69
+18.4%
8.3%€92.83€76.12€85.505
Sep ’24€69.00
€79.09
+14.6%
12.8%€92.83€63.12€75.905
Aug ’24€73.00
€76.79
+5.2%
15.6%€93.08€63.29€77.486
Jul ’24€59.60
€76.79
+28.8%
15.6%€93.08€63.29€82.986
Jun ’24€58.10
€84.13
+44.8%
8.0%€91.28€74.85€97.406
May ’24€66.80
€84.13
+25.9%
8.0%€91.28€74.85€95.066
Apr ’24€68.88
€84.02
+22.0%
10.6%€92.84€69.63€91.606
Mar ’24€67.36
€79.20
+17.6%
8.0%€85.22€69.47€94.006
Feb ’24€70.21
€79.19
+12.8%
9.3%€87.43€71.27€91.906
Jan ’24€63.42
€79.11
+24.7%
9.5%€88.11€71.06€97.206
Dec ’23€61.92
€72.62
+17.3%
14.7%€86.38€57.59€75.106
Nov ’23€65.80
€74.70
+13.5%
13.4%€90.45€60.30€65.906

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

Discover undervalued companies

Luk Fook Holdings (International)

HK$8.9b

An investment holding company, engages in sourcing, designing, wholesaling, trademark licensing, and retailing various gold and platinum jewelry, and gem-set jewelry products.

LUY1

HK$1.79

7D

2.3%

1Y

-21.5%

Platform Group

€149.8m

Operates an online platform for premium and luxury fashion accessories in Germany, the Netherlands, Austria, the United Kingdom, Switzerland, France, Italy, and internationally.

FSNT

€7.40

7D

2.8%

1Y

26.7%

Card Factory

UK£312.8m

Operates as a specialist retailer of cards, gifts, and celebration essentials in the United Kingdom and internationally.

0CT

UK£1.04

7D

10.1%

1Y

-10.6%