Flowserve Corporation

LSE:0IQE Stock Report

Market Cap: US$8.0b

Flowserve Valuation

Is 0IQE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 0IQE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0IQE ($61.36) is trading below our estimate of fair value ($91.32)

Significantly Below Fair Value: 0IQE is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0IQE?

Key metric: As 0IQE is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0IQE. This is calculated by dividing 0IQE's market cap by their current earnings.
What is 0IQE's PE Ratio?
PE Ratio29.9x
EarningsUS$267.84m
Market CapUS$8.01b

Price to Earnings Ratio vs Peers

How does 0IQE's PE Ratio compare to its peers?

The above table shows the PE ratio for 0IQE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.2x
WEIR Weir Group
25.4x19.0%UK£5.6b
SPX Spirax Group
26.1x9.0%UK£5.0b
IMI IMI
17.6x12.0%UK£4.5b
ROR Rotork
23.5x8.9%UK£2.8b
0IQE Flowserve
29.9x24.5%US$8.0b

Price-To-Earnings vs Peers: 0IQE is expensive based on its Price-To-Earnings Ratio (29.9x) compared to the peer average (23.2x).

Price to Earnings Ratio vs Industry

How does 0IQE's PE Ratio compare vs other companies in the European Machinery Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0IQE 29.9xIndustry Avg. 17.6xNo. of Companies30PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0IQE is expensive based on its Price-To-Earnings Ratio (29.9x) compared to the European Machinery industry average (17.6x).

Price to Earnings Ratio vs Fair Ratio

What is 0IQE'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.

0IQE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio29.9x
Fair PE Ratio28.5x

Price-To-Earnings vs Fair Ratio: 0IQE is expensive based on its Price-To-Earnings Ratio (29.9x) compared to the estimated Fair Price-To-Earnings Ratio (28.5x).

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 0IQE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$61.36
US$64.40
+5.0%
6.9%US$72.00US$55.00n/a10
Nov ’25US$53.57
US$62.60
+16.9%
6.0%US$66.00US$55.00n/a10
Oct ’25US$51.73
US$56.56
+9.3%
8.5%US$62.00US$46.00n/a9
Sep ’25US$49.02
US$56.56
+15.4%
8.5%US$62.00US$46.00n/a9
Aug ’25US$48.76
US$56.90
+16.7%
8.2%US$62.00US$46.00n/a10
Jul ’25US$46.94
US$54.40
+15.9%
8.1%US$60.00US$44.00n/a10
Jun ’25US$48.77
US$54.40
+11.6%
8.1%US$60.00US$44.00n/a10
May ’25US$47.40
US$54.40
+14.8%
8.1%US$60.00US$44.00n/a10
Apr ’25US$45.94
US$48.20
+4.9%
6.1%US$51.00US$41.00n/a10
Mar ’25US$42.63
US$48.20
+13.1%
6.1%US$51.00US$41.00n/a10
Feb ’25US$40.94
US$46.20
+12.8%
7.8%US$50.00US$38.00n/a10
Jan ’25US$41.28
US$46.20
+11.9%
7.8%US$50.00US$38.00n/a10
Dec ’24US$38.39
US$46.20
+20.3%
7.8%US$50.00US$38.00n/a10
Nov ’24US$35.87
US$46.20
+28.8%
7.8%US$50.00US$38.00US$53.5710
Oct ’24US$40.14
US$44.73
+11.4%
10.2%US$50.00US$36.00US$51.7311
Sep ’24US$40.18
US$42.91
+6.8%
9.9%US$50.00US$36.00US$49.0211
Aug ’24US$37.82
US$40.36
+6.7%
9.8%US$49.00US$34.00US$48.7611
Jul ’24US$36.45
US$39.55
+8.5%
7.5%US$45.00US$34.00US$46.9411
Jun ’24US$33.20
US$39.55
+19.1%
7.5%US$45.00US$34.00US$48.7711
May ’24US$32.60
US$37.45
+14.9%
9.0%US$42.00US$30.00US$47.4011
Apr ’24n/a
US$37.18
0%
10.8%US$42.00US$27.00US$45.9411
Mar ’24US$34.10
US$36.82
+8.0%
12.1%US$42.00US$27.00US$42.6311
Feb ’24US$34.69
US$33.73
-2.8%
15.8%US$42.00US$24.00US$40.9411
Jan ’24n/a
US$32.82
0%
15.7%US$42.00US$23.00US$41.2811
Dec ’23US$31.41
US$32.09
+2.2%
15.6%US$42.00US$23.00US$38.3911
Nov ’23US$28.27
US$32.00
+13.2%
16.0%US$42.00US$25.00US$35.8712

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

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