We’ve recently updated our valuation analysis.

Bodycote Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

BOY 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/Revenue1.9x
Enterprise Value/EBITDA8.2x
PEG Ratio1.8x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average25.5x
VSVS Vesuvius
7.4x0.01%UK£1.0b
MGAM Morgan Advanced Materials
11.8x4.9%UK£867.7m
ROR Rotork
32.9x12.7%UK£2.5b
JDG Judges Scientific
49.9x28.2%UK£494.6m
BOY Bodycote
18.7x10.6%UK£1.1b

Price-To-Earnings vs Peers: BOY is good value based on its Price-To-Earnings Ratio (18.7x) compared to the peer average (25.5x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.3%
n/an/an/a

Price-To-Earnings vs Industry: BOY is expensive based on its Price-To-Earnings Ratio (18.7x) compared to the European Machinery industry average (15.7x)


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 Ratio18.7x
Fair PE Ratio15.9x

Price-To-Earnings vs Fair Ratio: BOY is expensive based on its Price-To-Earnings Ratio (18.7x) compared to the estimated Fair Price-To-Earnings Ratio (15.9x).


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 (£5.95) is trading below our estimate of fair value (£10.01)

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


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£5.95
UK£6.78
+14.0%
17.3%UK£8.40UK£4.30n/a12
Nov ’23UK£5.13
UK£6.86
+33.8%
16.1%UK£8.40UK£4.60n/a12
Oct ’23UK£4.65
UK£7.00
+50.5%
14.5%UK£8.40UK£5.20n/a12
Sep ’23UK£5.12
UK£7.02
+37.1%
14.6%UK£8.40UK£5.20n/a12
Aug ’23UK£5.90
UK£7.16
+21.3%
15.0%UK£9.20UK£5.20n/a12
Jul ’23UK£5.25
UK£7.70
+46.7%
12.8%UK£9.20UK£6.00n/a13
Jun ’23UK£6.48
UK£7.74
+19.4%
12.4%UK£9.20UK£6.00n/a14
May ’23UK£6.24
UK£8.39
+34.6%
13.8%UK£10.30UK£6.00n/a14
Apr ’23UK£6.39
UK£8.74
+36.8%
15.6%UK£11.15UK£6.00n/a15
Mar ’23UK£7.00
UK£9.11
+30.1%
13.2%UK£11.15UK£6.71n/a16
Feb ’23UK£8.00
UK£9.08
+13.6%
13.0%UK£11.10UK£6.71n/a16
Jan ’23UK£8.66
UK£9.08
+4.9%
13.0%UK£11.10UK£6.71n/a16
Dec ’22UK£8.40
UK£8.97
+6.9%
13.3%UK£11.10UK£6.71n/a16
Nov ’22UK£8.00
UK£9.06
+13.4%
13.3%UK£11.20UK£6.71UK£5.1316
Oct ’22UK£8.45
UK£9.09
+7.6%
12.9%UK£11.20UK£6.71UK£4.6516
Sep ’22UK£9.73
UK£9.02
-7.3%
12.0%UK£11.20UK£6.71UK£5.1216
Aug ’22UK£9.03
UK£8.72
-3.4%
11.1%UK£10.30UK£6.71UK£5.9016
Jul ’22UK£8.64
UK£8.34
-3.5%
13.9%UK£10.00UK£6.24UK£5.2516
Jun ’22UK£8.70
UK£8.22
-5.5%
13.9%UK£10.00UK£6.24UK£6.4816
May ’22UK£7.56
UK£8.02
+6.1%
12.2%UK£9.80UK£6.24UK£6.2416
Apr ’22UK£8.36
UK£7.99
-4.4%
11.7%UK£9.80UK£6.24UK£6.3917
Mar ’22UK£7.34
UK£7.59
+3.4%
12.9%UK£9.60UK£5.60UK£7.0017
Feb ’22UK£7.12
UK£7.52
+5.8%
13.2%UK£9.60UK£5.60UK£8.0016
Jan ’22UK£7.46
UK£7.34
-1.5%
15.1%UK£9.60UK£5.50UK£8.6616
Dec ’21UK£7.30
UK£7.18
-1.5%
13.8%UK£8.60UK£5.40UK£8.4016
Nov ’21UK£6.51
UK£6.74
+3.6%
11.7%UK£8.20UK£5.40UK£8.0016

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


Discover undervalued companies