Travis Perkins plc

BATS-CHIXE:TPKL Stock Report

Market Cap: UK£1.5b

Travis Perkins Valuation

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

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of TPKL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TPKL (£7.01) is trading below our estimate of fair value (£9.77)

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

Key Valuation Metric

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

Key metric: As TPKL is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for TPKL. This is calculated by dividing TPKL's market cap by their current revenue.
What is TPKL's PS Ratio?
PS Ratio0.3x
SalesUK£4.75b
Market CapUK£1.48b

Price to Sales Ratio vs Peers

How does TPKL's PS Ratio compare to its peers?

The above table shows the PS ratio for TPKL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.8x
GFTU Grafton Group
0.8x6.5%UK£1.9b
RS1 RS Group
1.1x4.3%UK£3.2b
HWDN Howden Joinery Group
1.8x4.7%UK£4.3b
AT. Ashtead Technology Holdings
3.3x22.8%UK£465.7m
TPKL Travis Perkins
0.3x2.4%UK£1.5b

Price-To-Sales vs Peers: TPKL is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (1.8x).

Price to Sales Ratio vs Industry

How does TPKL's PS Ratio compare vs other companies in the GB Trade Distributors Industry?

5 CompaniesPrice / SalesEstimated GrowthMarket Cap
SHI SIG
0.07x2.5%US$226.81m
LORD Lords Group Trading
0.1x1.9%US$69.06m
HSS HSS Hire Group
0.1x-0.8%US$50.46m
SLNG H C Slingsby
0.2xn/aUS$4.11m
No. of Companies5PS00.81.62.43.24+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: TPKL is good value based on its Price-To-Sales Ratio (0.3x) compared to the UK Trade Distributors industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is TPKL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TPKL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ratio0.7x

Price-To-Sales vs Fair Ratio: TPKL is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (0.7x).

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 TPKL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£7.01
UK£9.17
+30.8%
7.8%UK£10.75UK£7.80n/a16
Dec ’25UK£7.58
UK£9.36
+23.5%
9.0%UK£11.50UK£7.80n/a16
Nov ’25UK£8.11
UK£9.50
+17.2%
9.2%UK£11.50UK£7.80n/a16
Oct ’25UK£9.19
UK£9.67
+5.2%
10.3%UK£11.50UK£7.80n/a16
Sep ’25UK£9.05
UK£9.45
+4.5%
10.4%UK£11.00UK£7.75n/a16
Aug ’25UK£9.38
UK£9.16
-2.3%
13.3%UK£11.00UK£7.60n/a16
Jul ’25UK£7.66
UK£8.68
+13.5%
14.3%UK£11.00UK£6.10n/a17
Jun ’25UK£8.60
UK£8.54
-0.7%
14.3%UK£11.00UK£6.10n/a17
May ’25UK£7.68
UK£8.06
+4.9%
11.6%UK£10.11UK£6.10n/a17
Apr ’25UK£7.28
UK£7.99
+9.8%
10.0%UK£9.50UK£6.10n/a17
Mar ’25UK£7.55
UK£8.42
+11.4%
10.4%UK£10.25UK£6.40n/a17
Feb ’25UK£7.75
UK£8.28
+6.9%
11.8%UK£10.25UK£6.40n/a18
Jan ’25UK£8.34
UK£8.22
-1.5%
11.6%UK£10.25UK£6.45UK£7.2618
Dec ’24UK£7.79
UK£8.19
+5.2%
11.6%UK£10.25UK£6.45UK£7.5818
Nov ’24UK£7.44
UK£8.34
+12.2%
11.2%UK£10.25UK£6.50UK£8.1117
Oct ’24UK£8.45
UK£9.19
+8.8%
12.0%UK£12.00UK£7.80UK£9.1918
Sep ’24UK£8.45
UK£9.19
+8.8%
12.0%UK£12.00UK£7.80UK£9.0518
Aug ’24UK£8.89
UK£9.15
+3.0%
12.2%UK£12.00UK£7.80UK£9.3818
Jul ’24UK£8.12
UK£9.27
+14.2%
11.7%UK£12.00UK£7.80UK£7.6618
Jun ’24UK£8.80
UK£10.14
+15.3%
12.9%UK£13.00UK£8.10UK£8.6018
May ’24UK£9.58
UK£10.13
+5.7%
12.6%UK£13.00UK£8.10UK£7.6819
Apr ’24UK£9.55
UK£10.14
+6.1%
12.6%UK£13.10UK£8.20UK£7.2819
Mar ’24UK£10.12
UK£9.96
-1.5%
13.8%UK£13.10UK£8.20UK£7.5518
Feb ’24UK£10.27
UK£9.69
-5.6%
13.6%UK£13.30UK£8.20UK£7.7519
Jan ’24UK£8.94
UK£9.68
+8.3%
14.9%UK£13.30UK£8.00UK£8.3419

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/05 08:17
End of Day Share Price 2025/01/03 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

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

Travis Perkins plc is covered by 46 analysts. 16 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Pierre-Yves GauthierAlphaValue
Emily BiddulphBarclays
Paul Daniel CheckettsBarclays