Keller Group plc

BATS-CHIXE:KLRL Stock Report

Market Cap: UK£1.1b

Keller Group Valuation

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

Below Fair Value: KLRL (£14.64) is trading below our estimate of fair value (£16.91)

Significantly Below Fair Value: KLRL is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for KLRL. This is calculated by dividing KLRL's market cap by their current earnings.
What is KLRL's PE Ratio?
PE Ratio8.4x
EarningsUK£125.70m
Market CapUK£1.06b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for KLRL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.5x
RNWH Renew Holdings
16.8x7.2%UK£821.5m
MGNS Morgan Sindall Group
14.4x2.8%UK£1.8b
KIE Kier Group
13x14.7%UK£663.0m
BBY Balfour Beatty
9.8x0.1%UK£2.3b
KLRL Keller Group
8.4x2.4%UK£1.1b

Price-To-Earnings vs Peers: KLRL is good value based on its Price-To-Earnings Ratio (8.4x) compared to the peer average (13.5x).

Price to Earnings Ratio vs Industry

How does KLRL's PE Ratio compare vs other companies in the European Construction Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies17PE0816243240+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: KLRL is good value based on its Price-To-Earnings Ratio (8.4x) compared to the European Construction industry average (13.2x).

Price to Earnings Ratio vs Fair Ratio

What is KLRL'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.

KLRL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.4x
Fair PE Ratio14.6x

Price-To-Earnings vs Fair Ratio: KLRL is good value based on its Price-To-Earnings Ratio (8.4x) compared to the estimated Fair Price-To-Earnings Ratio (14.6x).

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 KLRL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£14.64
UK£18.77
+28.2%
4.5%UK£19.80UK£17.60n/a5
Nov ’25UK£16.50
UK£18.07
+9.5%
5.8%UK£19.45UK£16.70n/a5
Oct ’25UK£16.07
UK£18.07
+12.4%
5.8%UK£19.45UK£16.70n/a5
Sep ’25UK£16.40
UK£17.77
+8.4%
5.3%UK£19.45UK£16.70n/a5
Aug ’25UK£14.46
UK£15.12
+4.6%
4.0%UK£16.00UK£14.20n/a5
Jul ’25UK£12.46
UK£15.12
+21.3%
4.0%UK£16.00UK£14.20n/a5
Jun ’25UK£12.84
UK£15.12
+17.8%
4.0%UK£16.00UK£14.20n/a5
May ’25UK£11.04
UK£13.20
+19.6%
6.6%UK£14.50UK£11.80n/a5
Apr ’25UK£10.46
UK£13.20
+26.2%
6.6%UK£14.50UK£11.80n/a5
Mar ’25UK£8.70
UK£12.65
+45.5%
8.0%UK£14.50UK£11.70n/a5
Feb ’25UK£8.61
UK£12.69
+47.4%
8.9%UK£14.50UK£11.70n/a4
Jan ’25UK£8.77
UK£12.48
+42.2%
7.5%UK£14.00UK£11.60n/a4
Dec ’24UK£8.20
UK£12.48
+52.1%
7.5%UK£14.00UK£11.60n/a4
Nov ’24UK£7.72
UK£12.48
+61.6%
7.5%UK£14.00UK£11.60UK£16.504
Oct ’24UK£7.56
UK£11.72
+55.1%
9.3%UK£13.40UK£10.50UK£16.074
Sep ’24UK£7.61
UK£11.72
+53.9%
9.3%UK£13.40UK£10.50UK£16.404
Aug ’24UK£8.24
UK£11.47
+39.1%
12.3%UK£13.40UK£9.50UK£14.464
Jul ’24UK£7.00
UK£11.14
+59.2%
12.7%UK£13.40UK£9.50UK£12.464
Jun ’24UK£6.68
UK£11.14
+66.8%
12.7%UK£13.40UK£9.50UK£12.844
May ’24UK£6.69
UK£11.14
+66.6%
12.7%UK£13.40UK£9.50UK£11.044
Apr ’24UK£6.85
UK£11.14
+62.7%
12.7%UK£13.40UK£9.50UK£10.464
Mar ’24UK£8.16
UK£11.22
+37.5%
12.5%UK£13.40UK£9.50UK£8.704
Feb ’24UK£8.21
UK£11.22
+36.6%
12.5%UK£13.40UK£9.50UK£8.614
Jan ’24UK£8.01
UK£11.59
+44.7%
9.0%UK£13.40UK£10.97UK£8.774
Dec ’23UK£7.40
UK£11.59
+56.7%
9.0%UK£13.40UK£10.97UK£8.204
Nov ’23UK£6.24
UK£11.59
+85.8%
9.0%UK£13.40UK£10.97UK£7.724

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

Senior

UK£577.4m

Designs, manufactures, and sells high-technology components and systems for the principal original equipment manufacturers in the aerospace, defense, land vehicle, and power and energy markets in the United States, the United Kingdom, and internationally.

SNR

UK£1.41

7D

-1.3%

1Y

-18.5%

Aalberts

€3.7b

Offers mission-critical technologies for aerospace, automotive, building, and maritime sectors.

0NX1

€34.40

7D

-0.9%

1Y

-2.2%

Rieter Holding

CHF 384.1m

Supplies systems for manufacturing yarn from staple fibers in spinning mills in Switzerland and internationally.

0QKA

CHF 87.30

7D

-0.9%

1Y

1.2%