Diploma PLC

BATS-CHIXE:DPLML Stock Report

Market Cap: UK£5.8b

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 (£42.78) is trading above our estimate of fair value (£37.03)

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 Ratio44.5x
EarningsUK£129.30m
Market CapUK£5.76b

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 Average19x
HWDN Howden Joinery Group
17x6.0%UK£4.3b
RS1 RS Group
19x16.5%UK£3.2b
BNZL Bunzl
22.4x7.1%UK£10.9b
AHT Ashtead Group
17.5x1.8%UK£21.6b
DPLML Diploma
44.5x13.9%UK£5.8b

Price-To-Earnings vs Peers: DPLML is expensive based on its Price-To-Earnings Ratio (44.5x) compared to the peer average (19x).

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 Companies10PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DPLML is expensive based on its Price-To-Earnings Ratio (44.5x) 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 Ratio44.5x
Fair PE Ratio22.4x

Price-To-Earnings vs Fair Ratio: DPLML is expensive based on its Price-To-Earnings Ratio (44.5x) compared to the estimated Fair Price-To-Earnings Ratio (22.4x).

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£42.78
UK£47.59
+11.2%
10.2%UK£55.00UK£39.00n/a14
Dec ’25UK£44.56
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£31.00UK£44.5611
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

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/27 05:02
End of Day Share Price 2024/12/24 00:00
Earnings2024/09/30
Annual Earnings2024/09/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Diploma PLC is covered by 30 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jane SparrowBarclays
James RosenthalBarclays
James BaylissBerenberg