Balfour Beatty Valuation

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

Below Fair Value: BBY (£4.31) is trading above our estimate of fair value (£3.93)

Significantly Below Fair Value: BBY is trading above our estimate of fair value.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

BBY 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/Revenue0.2x
Enterprise Value/EBITDA10.4x
PEG Ratio8.9x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BBY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.3x
MGNS Morgan Sindall Group
14.3x2.8%UK£1.8b
KLR Keller Group
9.4x0.4%UK£1.2b
RNWH Renew Holdings
17.4x3.6%UK£848.4m
KIE Kier Group
12.3x14.7%UK£629.5m
BBY Balfour Beatty
9.5x1.1%UK£2.2b

Price-To-Earnings vs Peers: BBY is good value based on its Price-To-Earnings Ratio (9.5x) compared to the peer average (13.3x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a3.8%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a3.8%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: BBY is good value based on its Price-To-Earnings Ratio (9.5x) compared to the European Construction industry average (12.6x).


Price to Earnings Ratio vs Fair Ratio

What is BBY'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.

BBY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.5x
Fair PE Ratio14.7x

Price-To-Earnings vs Fair Ratio: BBY is good value based on its Price-To-Earnings Ratio (9.5x) compared to the estimated Fair Price-To-Earnings Ratio (14.7x).


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 BBY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£4.31
UK£4.65
+7.8%
17.1%UK£5.20UK£2.50n/a9
Nov ’25UK£4.41
UK£4.65
+5.3%
17.1%UK£5.20UK£2.50n/a9
Oct ’25UK£4.36
UK£4.58
+5.1%
16.9%UK£5.20UK£2.50n/a9
Sep ’25UK£4.19
UK£4.58
+9.4%
16.9%UK£5.20UK£2.50n/a9
Aug ’25UK£4.16
UK£4.41
+6.0%
16.2%UK£5.00UK£2.50n/a9
Jul ’25UK£3.66
UK£4.39
+20.0%
16.0%UK£5.00UK£2.50n/a9
Jun ’25UK£3.71
UK£4.39
+18.2%
16.0%UK£5.00UK£2.50n/a9
May ’25UK£3.68
UK£4.36
+18.4%
15.6%UK£4.80UK£2.50n/a9
Apr ’25UK£3.82
UK£4.36
+14.0%
15.6%UK£4.80UK£2.50n/a9
Mar ’25UK£3.44
UK£4.28
+24.4%
16.3%UK£4.75UK£2.50n/a9
Feb ’25UK£3.31
UK£4.35
+31.6%
16.3%UK£4.75UK£2.50n/a8
Jan ’25UK£3.31
UK£4.17
+25.9%
17.6%UK£4.75UK£2.50n/a8
Dec ’24UK£3.32
UK£4.17
+25.7%
17.6%UK£4.75UK£2.50n/a8
Nov ’24UK£3.03
UK£4.16
+37.2%
17.6%UK£4.75UK£2.50UK£4.418
Oct ’24UK£3.21
UK£4.16
+29.5%
17.6%UK£4.75UK£2.50UK£4.368
Sep ’24UK£3.23
UK£4.08
+26.3%
17.4%UK£4.75UK£2.50UK£4.198
Aug ’24UK£3.51
UK£4.14
+18.1%
17.4%UK£4.75UK£2.50UK£4.168
Jul ’24UK£3.41
UK£4.14
+21.6%
17.4%UK£4.75UK£2.50UK£3.668
Jun ’24UK£3.67
UK£4.14
+12.8%
17.4%UK£4.75UK£2.50UK£3.718
May ’24UK£3.83
UK£4.16
+8.7%
17.4%UK£4.75UK£2.50UK£3.687
Apr ’24UK£3.72
UK£4.06
+8.9%
18.9%UK£4.75UK£2.30UK£3.828
Mar ’24UK£3.64
UK£3.88
+6.3%
17.9%UK£4.75UK£2.30UK£3.448
Feb ’24UK£3.68
UK£3.88
+5.2%
17.9%UK£4.75UK£2.30UK£3.318
Jan ’24UK£3.38
UK£3.78
+12.0%
16.2%UK£4.50UK£2.30UK£3.318
Dec ’23UK£3.28
UK£3.69
+12.4%
16.4%UK£4.50UK£2.30UK£3.328
Nov ’23UK£3.00
UK£3.64
+21.1%
15.1%UK£4.10UK£2.30UK£3.038

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


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