Diploma PLC

BATS-CHIXE:DPLML Stock Report

Market Cap: UK£6.0b

Diploma Valuation

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

Below Fair Value: DPLML (£44.58) is trading above our estimate of fair value (£37.95)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for DPLML. This is calculated by dividing DPLML's market cap by their current earnings.
What is DPLML's PE Ratio?
PE Ratio46.3x
EarningsUK£129.30m
Market CapUK£5.99b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for DPLML vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.1x
HWDN Howden Joinery Group
17.7x6.0%UK£4.5b
RS1 RS Group
20.3x18.4%UK£3.4b
BNZL Bunzl
23.8x7.0%UK£11.6b
GFTU Grafton Group
14.5x5.8%UK£1.9b
DPLML Diploma
46.3x15.7%UK£6.0b

Price-To-Earnings vs Peers: DPLML is expensive based on its Price-To-Earnings Ratio (46.3x) compared to the peer average (19.1x).

Price to Earnings Ratio vs Industry

How does DPLML's PE Ratio compare vs other companies in the European Trade Distributors Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies11PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DPLML is expensive based on its Price-To-Earnings Ratio (46.3x) compared to the European Trade Distributors industry average (14.3x).

Price to Earnings Ratio vs Fair Ratio

What is DPLML'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.

DPLML PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio46.3x
Fair PE Ratio23.3x

Price-To-Earnings vs Fair Ratio: DPLML is expensive based on its Price-To-Earnings Ratio (46.3x) compared to the estimated Fair Price-To-Earnings Ratio (23.3x).

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 DPLML forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£44.58
UK£46.62
+4.6%
9.8%UK£52.00UK£39.00n/a13
Nov ’25UK£42.96
UK£45.87
+6.8%
10.5%UK£52.00UK£38.00n/a13
Oct ’25UK£44.30
UK£45.45
+2.6%
10.3%UK£52.00UK£38.00n/a13
Sep ’25UK£44.72
UK£43.40
-2.9%
10.1%UK£50.10UK£36.00n/a12
Aug ’25UK£43.52
UK£43.55
+0.06%
10.4%UK£50.10UK£36.00n/a11
Jul ’25UK£41.43
UK£43.51
+5.0%
9.7%UK£50.10UK£36.00n/a11
Jun ’25UK£40.92
UK£43.51
+6.3%
9.7%UK£50.10UK£36.00n/a11
May ’25UK£36.24
UK£40.35
+11.4%
6.7%UK£44.00UK£35.00n/a11
Apr ’25UK£37.26
UK£39.76
+6.7%
7.3%UK£44.00UK£35.00n/a11
Mar ’25UK£34.94
UK£37.22
+6.5%
6.0%UK£40.00UK£31.00n/a11
Feb ’25UK£33.47
UK£36.86
+10.1%
6.5%UK£40.00UK£31.00n/a11
Jan ’25UK£35.94
UK£36.59
+1.8%
6.0%UK£39.15UK£31.00n/a11
Dec ’24UK£33.80
UK£36.59
+8.2%
6.0%UK£39.15UK£31.00n/a11
Nov ’24UK£28.94
UK£34.48
+19.1%
6.4%UK£37.25UK£29.00UK£42.9611
Oct ’24UK£30.00
UK£34.23
+14.1%
6.6%UK£37.25UK£29.00UK£44.3012
Sep ’24UK£31.40
UK£33.96
+8.1%
6.3%UK£37.00UK£29.00UK£44.7211
Aug ’24UK£32.44
UK£33.98
+4.7%
6.6%UK£37.00UK£29.00UK£43.528
Jul ’24UK£29.88
UK£31.78
+6.4%
10.9%UK£37.00UK£24.00UK£41.4312
Jun ’24UK£30.02
UK£31.78
+5.9%
10.9%UK£37.00UK£24.00UK£40.9212
May ’24UK£26.88
UK£30.69
+14.2%
13.0%UK£37.00UK£22.50UK£36.2412
Apr ’24UK£28.02
UK£30.69
+9.5%
13.0%UK£37.00UK£22.50UK£37.2612
Mar ’24UK£28.02
UK£30.47
+8.7%
13.9%UK£37.00UK£21.50UK£34.9412
Feb ’24UK£27.26
UK£30.47
+11.8%
13.9%UK£37.00UK£21.50UK£33.4712
Jan ’24UK£27.84
UK£30.20
+8.5%
14.3%UK£37.00UK£21.50UK£35.9411
Dec ’23UK£29.20
UK£29.05
-0.5%
16.9%UK£37.00UK£21.50UK£33.8011
Nov ’23UK£25.14
UK£28.64
+13.9%
17.5%UK£37.00UK£21.50UK£28.9411

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

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