Bunzl plc

LSE:BNZL Stock Report

Market Cap: UK£11.0b

Bunzl Valuation

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

Discounted Cash Flow
Simply Wall St
UK£41.90
Fair Value
19.7% undervalued intrinsic discount
17
Number of Analysts

Below Fair Value: BNZL (£33.66) is trading below our estimate of fair value (£41.9)

Significantly Below Fair Value: BNZL 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 BNZL?

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

The above table shows the Price to Earnings ratio for BNZL. This is calculated by dividing BNZL's market cap by their current earnings.
What is BNZL's PE Ratio?
PE Ratio22.6x
EarningsUK£487.70m
Market CapUK£11.04b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BNZL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.4x
DPLM Diploma
48.1x14.9%UK£6.2b
AHT Ashtead Group
17.4x10.9%UK£21.3b
HWDN Howden Joinery Group
18.3x5.7%UK£4.6b
RS1 RS Group
17.9x13.7%UK£3.0b
BNZL Bunzl
22.6x6.3%UK£11.0b

Price-To-Earnings vs Peers: BNZL is good value based on its Price-To-Earnings Ratio (22.6x) compared to the peer average (25.4x).

Price to Earnings Ratio vs Industry

How does BNZL's PE Ratio compare vs other companies in the European Trade Distributors Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
BNZL 22.6xIndustry Avg. 14.3xNo. of Companies11PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BNZL is expensive based on its Price-To-Earnings Ratio (22.6x) compared to the European Trade Distributors industry average (14.3x).

Price to Earnings Ratio vs Fair Ratio

What is BNZL'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.

BNZL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.6x
Fair PE Ratio18.7x

Price-To-Earnings vs Fair Ratio: BNZL is expensive based on its Price-To-Earnings Ratio (22.6x) compared to the estimated Fair Price-To-Earnings Ratio (18.7x).

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 BNZL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£33.66
UK£35.81
+6.4%
11.0%UK£41.00UK£28.00n/a17
Feb ’26UK£34.48
UK£35.58
+3.2%
11.1%UK£41.00UK£28.00n/a16
Jan ’26UK£32.96
UK£35.61
+8.0%
11.1%UK£41.00UK£28.00n/a16
Dec ’25UK£35.58
UK£35.03
-1.6%
10.2%UK£40.00UK£28.00n/a16
Nov ’25UK£34.26
UK£35.03
+2.2%
10.2%UK£40.00UK£28.00n/a16
Oct ’25UK£35.28
UK£34.39
-2.5%
9.7%UK£40.00UK£28.00n/a16
Sep ’25UK£35.40
UK£33.92
-4.2%
10.6%UK£40.00UK£26.00n/a16
Aug ’25UK£32.30
UK£32.29
-0.03%
11.4%UK£38.00UK£26.00n/a17
Jul ’25UK£29.92
UK£31.95
+6.8%
11.4%UK£37.00UK£26.00n/a17
Jun ’25UK£29.36
UK£31.67
+7.9%
11.3%UK£37.00UK£26.00n/a17
May ’25UK£30.54
UK£31.66
+3.7%
11.4%UK£37.00UK£26.00n/a17
Apr ’25UK£30.48
UK£31.50
+3.4%
11.4%UK£37.00UK£26.00n/a17
Mar ’25UK£31.04
UK£31.46
+1.4%
12.0%UK£37.00UK£25.00n/a16
Feb ’25UK£32.04
UK£30.55
-4.6%
12.3%UK£37.00UK£25.00UK£34.4815
Jan ’25UK£31.90
UK£30.17
-5.4%
12.0%UK£36.00UK£25.00UK£32.9615
Dec ’24UK£29.96
UK£29.99
+0.1%
11.8%UK£36.00UK£25.00UK£35.5815
Nov ’24UK£29.44
UK£29.99
+1.9%
11.8%UK£36.00UK£25.00UK£34.2615
Oct ’24UK£29.26
UK£29.63
+1.3%
12.3%UK£36.00UK£25.00UK£35.2816
Sep ’24UK£28.50
UK£29.72
+4.3%
12.2%UK£36.00UK£25.00UK£35.4017
Aug ’24UK£28.73
UK£30.17
+5.0%
12.3%UK£36.00UK£25.00UK£32.3018
Jul ’24UK£29.99
UK£30.33
+1.1%
11.7%UK£36.00UK£25.00UK£29.9218
Jun ’24UK£31.50
UK£30.72
-2.5%
11.5%UK£36.07UK£25.00UK£29.3619
May ’24UK£31.64
UK£30.35
-4.1%
11.5%UK£36.07UK£24.70UK£30.5418
Apr ’24UK£30.57
UK£29.98
-1.9%
11.1%UK£36.07UK£24.70UK£30.4817
Mar ’24UK£29.74
UK£29.79
+0.2%
12.0%UK£36.07UK£23.40UK£31.0418
Feb ’24UK£29.80
UK£29.33
-1.6%
11.9%UK£36.07UK£23.40UK£32.0418
Analyst Price Target
Consensus Narrative from 17 Analysts
UK£35.81
Fair Value
6.0% undervalued intrinsic discount
17
Number of Analysts

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 Analysis2025/02/21 18:48
End of Day Share Price 2025/02/21 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.

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 Github.

Analyst Sources

Bunzl plc is covered by 45 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
Paul Daniel CheckettsBarclays
James RosenthalBarclays
Thomas BurltonBerenberg