Spirax-Sarco Engineering plc

BATS-CHIXE:SPXL Stock Report

Market Cap: UK£6.5b

Spirax-Sarco Engineering Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: SPXL (£87.85) is trading below our estimate of fair value (£96.97)

Significantly Below Fair Value: SPXL 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 SPXL?

Other financial metrics that can be useful for relative valuation.

SPXL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.3x
Enterprise Value/EBITDA19x
PEG Ratio2.7x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SPXL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.5x
WEIR Weir Group
22.7x16.5%UK£5.2b
IMI IMI
19.4x11.9%UK£4.6b
ROR Rotork
24.6x8.2%UK£2.8b
BOY Bodycote
15.2x9.6%UK£1.3b
SPXL Spirax-Sarco Engineering
35.2x13.0%UK£6.5b

Price-To-Earnings vs Peers: SPXL is expensive based on its Price-To-Earnings Ratio (35.2x) compared to the peer average (20.4x).

Price to Earnings Ratio vs Industry

How does SPXL's PE Ratio compare vs other companies in the European Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.1%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.1%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: SPXL is expensive based on its Price-To-Earnings Ratio (35.2x) compared to the European Machinery industry average (17x).

Price to Earnings Ratio vs Fair Ratio

What is SPXL'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.

SPXL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio35.2x
Fair PE Ratio24.8x

Price-To-Earnings vs Fair Ratio: SPXL is expensive based on its Price-To-Earnings Ratio (35.2x) compared to the estimated Fair Price-To-Earnings Ratio (24.8x).

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 SPXL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£87.85
UK£98.59
+12.2%
11.2%UK£123.00UK£80.00n/a16
Apr ’25UK£100.70
UK£99.07
-1.6%
11.2%UK£123.00UK£80.00n/a16
Mar ’25UK£103.53
UK£98.95
-4.4%
13.2%UK£125.00UK£80.00n/a15
Feb ’25UK£100.13
UK£98.95
-1.2%
13.2%UK£125.00UK£80.00n/a15
Jan ’25UK£105.60
UK£98.38
-6.8%
12.8%UK£127.00UK£77.75n/a14
Dec ’24UK£92.52
UK£99.80
+7.9%
14.0%UK£127.00UK£77.75n/a14
Nov ’24UK£81.66
UK£104.57
+28.1%
14.9%UK£135.00UK£78.20n/a14
Oct ’24UK£95.50
UK£113.25
+18.6%
11.3%UK£135.00UK£88.05n/a14
Sep ’24UK£99.86
UK£113.11
+13.3%
11.3%UK£135.00UK£88.05n/a14
Aug ’24UK£111.45
UK£117.35
+5.3%
10.7%UK£143.00UK£91.45n/a14
Jul ’24UK£103.90
UK£118.99
+14.5%
9.4%UK£143.00UK£100.00n/a14
Jun ’24UK£109.40
UK£118.06
+7.9%
9.6%UK£143.00UK£100.00n/a15
May ’24UK£110.55
UK£119.06
+7.7%
9.8%UK£143.00UK£100.00UK£88.5015
Apr ’24UK£119.05
UK£119.85
+0.7%
10.5%UK£143.00UK£98.25UK£100.7015
Mar ’24UK£118.15
UK£119.47
+1.1%
10.2%UK£143.00UK£98.25UK£103.5316
Feb ’24UK£115.70
UK£118.42
+2.4%
10.8%UK£143.00UK£98.25UK£100.1316
Jan ’24UK£106.35
UK£118.82
+11.7%
10.9%UK£146.00UK£99.10UK£105.6016
Dec ’23UK£113.95
UK£118.73
+4.2%
10.9%UK£146.00UK£92.80UK£92.5216
Nov ’23UK£108.30
UK£118.78
+9.7%
10.6%UK£146.00UK£92.80UK£81.6615
Oct ’23UK£103.75
UK£119.69
+15.4%
9.3%UK£146.00UK£105.00UK£95.5015
Sep ’23UK£101.30
UK£120.65
+19.1%
8.8%UK£146.00UK£104.45UK£99.8616
Aug ’23UK£120.00
UK£120.21
+0.2%
8.3%UK£135.00UK£104.45UK£111.4516
Jul ’23UK£100.05
UK£125.88
+25.8%
10.5%UK£150.00UK£104.20UK£103.9015
Jun ’23UK£104.65
UK£126.86
+21.2%
9.5%UK£150.00UK£105.00UK£109.4015
May ’23UK£120.95
UK£131.21
+8.5%
10.9%UK£161.00UK£105.00UK£110.5515

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

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