Bodycote plc

LSE:BOY Stock Report

Market Cap: UK£1.1b

Bodycote Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: BOY (£6.16) is trading below our estimate of fair value (£14.97)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BOY. This is calculated by dividing BOY's market cap by their current earnings.
What is BOY's PE Ratio?
PE Ratio18x
EarningsUK£62.60m
Market CapUK£1.12b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BOY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.1x
VSVS Vesuvius
10.8x11.9%UK£1.1b
MGAM Morgan Advanced Materials
10.9x11.3%UK£751.2m
JDG Judges Scientific
43.9x25.3%UK£558.0m
GDWN Goodwin
31xn/aUK£524.2m
BOY Bodycote
18x20.2%UK£1.1b

Price-To-Earnings vs Peers: BOY is good value based on its Price-To-Earnings Ratio (18x) compared to the peer average (24.1x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
BOY 18.0xIndustry Avg. 17.6xNo. of Companies30PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BOY is expensive based on its Price-To-Earnings Ratio (18x) compared to the European Machinery industry average (17.6x).

Price to Earnings Ratio vs Fair Ratio

What is BOY'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.

BOY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18x
Fair PE Ratio20.6x

Price-To-Earnings vs Fair Ratio: BOY is good value based on its Price-To-Earnings Ratio (18x) compared to the estimated Fair Price-To-Earnings Ratio (20.7x).

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 BOY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£6.16
UK£7.59
+23.1%
14.3%UK£9.00UK£5.40n/a10
Nov ’25UK£5.65
UK£7.68
+35.8%
14.5%UK£9.00UK£5.40n/a10
Oct ’25UK£5.99
UK£7.99
+33.4%
16.5%UK£10.00UK£5.40n/a10
Sep ’25UK£6.61
UK£7.99
+20.9%
17.4%UK£10.00UK£5.40n/a9
Aug ’25UK£6.73
UK£8.07
+19.9%
16.4%UK£10.00UK£5.90n/a9
Jul ’25UK£6.92
UK£8.10
+17.0%
16.9%UK£10.00UK£5.60n/a10
Jun ’25UK£7.54
UK£8.10
+7.4%
16.9%UK£10.00UK£5.60n/a10
May ’25UK£6.94
UK£8.01
+15.3%
18.2%UK£10.00UK£5.60n/a10
Apr ’25UK£6.97
UK£7.76
+11.3%
19.8%UK£10.00UK£5.60n/a10
Mar ’25UK£6.23
UK£7.94
+27.5%
21.3%UK£10.00UK£5.60n/a9
Feb ’25UK£6.34
UK£7.89
+24.6%
21.4%UK£10.00UK£5.60n/a9
Jan ’25UK£5.95
UK£7.79
+31.0%
20.6%UK£10.00UK£5.50n/a9
Dec ’24UK£5.94
UK£7.89
+32.8%
19.0%UK£10.00UK£5.50n/a9
Nov ’24UK£5.73
UK£7.94
+38.6%
17.6%UK£10.00UK£6.00UK£5.6510
Oct ’24UK£6.53
UK£7.81
+19.7%
17.4%UK£10.00UK£6.00UK£5.9910
Sep ’24UK£6.77
UK£7.88
+16.5%
16.7%UK£10.00UK£6.00UK£6.6111
Aug ’24UK£7.07
UK£7.74
+9.5%
16.3%UK£10.00UK£6.00UK£6.7311
Jul ’24UK£6.41
UK£7.43
+15.9%
18.3%UK£9.50UK£5.43UK£6.9212
Jun ’24UK£6.45
UK£7.51
+16.4%
16.7%UK£9.50UK£5.43UK£7.5412
May ’24UK£6.91
UK£7.38
+6.9%
15.7%UK£9.50UK£5.43UK£6.9412
Apr ’24UK£6.53
UK£6.84
+4.8%
13.5%UK£8.40UK£5.43UK£6.9712
Mar ’24UK£6.75
UK£6.78
+0.5%
13.5%UK£8.40UK£5.43UK£6.2312
Feb ’24UK£6.59
UK£6.89
+4.6%
12.0%UK£8.40UK£5.85UK£6.3412
Jan ’24UK£5.69
UK£6.57
+15.6%
16.4%UK£8.40UK£4.30UK£5.9513
Dec ’23UK£5.99
UK£6.72
+12.2%
17.0%UK£8.40UK£4.30UK£5.9413
Nov ’23UK£5.13
UK£6.86
+33.8%
16.1%UK£8.40UK£4.60UK£5.7312

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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