Renishaw plc

DB:REW Stock Report

Market Cap: €2.7b

Renishaw Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: REW (€37.8) is trading above our estimate of fair value (€26.38)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for REW. This is calculated by dividing REW's market cap by their current earnings.
What is REW's PE Ratio?
PE Ratio23.5x
EarningsUK£96.89m
Market CapUK£2.28b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for REW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20x
JEN Jenoptik
14.2x12.3%€1.2b
S9I Stemmer Imaging
42.2x37.2%€344.5m
M7U Nynomic
12.2x17.5%€115.4m
FEV FORTEC Elektronik
11.5x14.2%€60.8m
REW Renishaw
23.5x12.6%€2.3b

Price-To-Earnings vs Peers: REW is expensive based on its Price-To-Earnings Ratio (23.5x) compared to the peer average (20x).

Price to Earnings Ratio vs Industry

How does REW's PE Ratio compare vs other companies in the European Electronic Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
REW 23.5xIndustry Avg. 17.8xNo. of Companies18PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: REW is expensive based on its Price-To-Earnings Ratio (23.5x) compared to the European Electronic industry average (17.8x).

Price to Earnings Ratio vs Fair Ratio

What is REW'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.

REW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.5x
Fair PE Ratio12.7x

Price-To-Earnings vs Fair Ratio: REW is expensive based on its Price-To-Earnings Ratio (23.5x) compared to the estimated Fair Price-To-Earnings Ratio (12.7x).

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 REW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€37.80
€46.84
+23.9%
15.2%€60.39€38.65n/a8
Nov ’25€37.40
€47.43
+26.8%
15.0%€59.97€38.38n/a7
Oct ’25€45.00
€47.61
+5.8%
14.9%€59.99€38.39n/a7
Sep ’25€41.80
€50.80
+21.5%
14.7%€59.34€37.98n/a7
Aug ’25€44.60
€50.80
+13.9%
14.7%€59.34€37.98n/a7
Jul ’25€43.80
€50.62
+15.6%
14.7%€59.14€37.85n/a7
Jun ’25€46.80
€48.56
+3.8%
17.1%€58.76€36.43n/a8
May ’25€49.20
€48.49
-1.4%
17.9%€58.43€36.22n/a8
Apr ’25€48.60
€46.30
-4.7%
17.4%€58.50€36.27n/a7
Mar ’25€50.50
€45.05
-10.8%
16.1%€58.61€36.34n/a7
Feb ’25€41.00
€40.08
-2.2%
14.0%€46.84€33.96n/a7
Jan ’25€41.00
€39.08
-4.7%
13.8%€45.98€33.34n/a7
Dec ’24€36.40
€39.08
+7.4%
13.8%€45.98€33.34n/a7
Nov ’24€35.20
€39.57
+12.4%
14.1%€45.88€33.26€37.406
Oct ’24€40.40
€41.75
+3.3%
16.6%€50.94€33.57€45.005
Sep ’24€42.20
€43.95
+4.1%
21.4%€58.38€33.86€41.805
Aug ’24€45.60
€44.70
-2.0%
20.4%€58.75€34.08€44.605
Jul ’24€44.80
€46.16
+3.0%
19.6%€58.53€33.95€43.806
Jun ’24€47.40
€44.76
-5.6%
19.6%€56.77€32.93€46.806
May ’24€42.00
€45.10
+7.4%
19.4%€57.03€33.08€49.206
Apr ’24€47.00
€46.39
-1.3%
17.2%€56.05€32.51€48.606
Mar ’24€45.60
€45.75
+0.3%
16.9%€56.32€32.67€50.507
Feb ’24€44.20
€45.85
+3.7%
17.4%€56.94€34.16€41.006
Jan ’24€41.40
€50.07
+20.9%
21.4%€67.92€37.03€41.007
Dec ’23€43.00
€50.07
+16.4%
21.4%€67.92€37.03€36.407
Nov ’23€41.00
€50.58
+23.4%
20.5%€68.17€39.49€35.207

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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