Smiths Group plc

BATS-CHIXE:SMINL Stock Report

Market Cap: UK£5.9b

Smiths Group Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: SMINL (£17.29) is trading below our estimate of fair value (£25.6)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SMINL. This is calculated by dividing SMINL's market cap by their current earnings.
What is SMINL's PE Ratio?
PE Ratio23.7x
EarningsUK£250.00m
Market CapUK£5.92b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SMINL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28.1x
DCC DCC
15.5x11.9%UK£5.1b
WEIR Weir Group
25.8x18.5%UK£5.7b
SPX Spirax Group
26.7x8.5%UK£5.1b
DPLM Diploma
44.6x14.7%UK£5.8b
SMINL Smiths Group
23.7x15.4%UK£5.9b

Price-To-Earnings vs Peers: SMINL is good value based on its Price-To-Earnings Ratio (23.7x) compared to the peer average (28.1x).

Price to Earnings Ratio vs Industry

How does SMINL's PE Ratio compare vs other companies in the European Industrials Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies4PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SMINL is expensive based on its Price-To-Earnings Ratio (23.7x) compared to the European Industrials industry average (16.2x).

Price to Earnings Ratio vs Fair Ratio

What is SMINL'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.

SMINL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.7x
Fair PE Ratio22.6x

Price-To-Earnings vs Fair Ratio: SMINL is expensive based on its Price-To-Earnings Ratio (23.7x) compared to the estimated Fair Price-To-Earnings Ratio (22.6x).

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 SMINL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£17.29
UK£20.26
+17.2%
9.2%UK£24.00UK£17.50n/a14
Dec ’25UK£17.71
UK£20.13
+13.7%
9.0%UK£24.00UK£17.50n/a14
Nov ’25UK£15.40
UK£19.78
+28.4%
8.1%UK£21.80UK£17.25n/a13
Oct ’25UK£16.74
UK£19.91
+18.9%
8.8%UK£22.50UK£17.25n/a13
Sep ’25UK£18.04
UK£20.05
+11.2%
8.2%UK£22.50UK£17.50n/a14
Aug ’25UK£17.47
UK£20.17
+15.5%
8.2%UK£22.50UK£17.50n/a13
Jul ’25UK£17.02
UK£20.05
+17.8%
7.9%UK£22.50UK£17.50n/a13
Jun ’25UK£17.22
UK£20.05
+16.4%
7.9%UK£22.50UK£17.50n/a13
May ’25UK£16.05
UK£19.93
+24.2%
7.7%UK£22.50UK£17.50n/a13
Apr ’25UK£16.41
UK£19.86
+21.1%
8.1%UK£22.50UK£17.50n/a13
Mar ’25UK£16.20
UK£19.78
+22.1%
8.1%UK£22.40UK£17.50n/a13
Feb ’25UK£16.29
UK£19.70
+20.9%
8.2%UK£22.40UK£17.50n/a13
Jan ’25UK£17.66
UK£19.25
+9.0%
7.5%UK£22.20UK£17.00n/a14
Dec ’24UK£16.71
UK£19.24
+15.2%
7.7%UK£22.20UK£17.00UK£17.7113
Nov ’24UK£16.11
UK£19.24
+19.4%
7.5%UK£21.80UK£17.00UK£15.4013
Oct ’24UK£16.25
UK£18.99
+16.9%
7.1%UK£21.80UK£17.00UK£16.7411
Sep ’24UK£16.36
UK£18.83
+15.1%
8.6%UK£22.40UK£15.80UK£18.0412
Aug ’24UK£16.94
UK£18.83
+11.2%
8.6%UK£22.40UK£15.80UK£17.4712
Jul ’24UK£16.53
UK£18.63
+12.7%
9.4%UK£22.40UK£15.80UK£17.0212
Jun ’24UK£16.14
UK£18.63
+15.5%
9.8%UK£22.40UK£15.80UK£17.2211
May ’24UK£16.78
UK£17.80
+6.1%
14.8%UK£22.40UK£11.50UK£16.0511
Apr ’24UK£17.17
UK£17.75
+3.4%
14.5%UK£22.40UK£11.50UK£16.4111
Mar ’24UK£17.90
UK£17.51
-2.2%
14.5%UK£22.50UK£11.50UK£16.2012
Feb ’24UK£17.67
UK£16.99
-3.9%
12.6%UK£19.80UK£11.50UK£16.2911
Jan ’24UK£16.05
UK£16.47
+2.7%
10.8%UK£18.00UK£11.50UK£17.6611
Dec ’23UK£15.98
UK£16.47
+3.1%
10.8%UK£18.00UK£11.50UK£16.7111

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 Analysis2024/12/22 12:21
End of Day Share Price 2024/12/20 00:00
Earnings2024/07/31
Annual Earnings2024/07/31

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

Smiths Group plc is covered by 38 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David LarkamArden Partners Plc.
Jonathan HurnBarclays
Joseph CampbellBarclays