DCC Valuation

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

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: DCC (£55.35) is trading below our estimate of fair value (£94.12)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

DCC 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/Revenue0.3x
Enterprise Value/EBITDA8.1x
PEG Ratio1.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for DCC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.9x
SMIN Smiths Group
25.8x18.5%UK£6.0b
WEIR Weir Group
22.3x14.9%UK£5.1b
HWDN Howden Joinery Group
20.2x7.5%UK£5.2b
SPX Spirax Group
35.4x10.9%UK£6.5b
DCC DCC
16.8x9.5%UK£5.5b

Price-To-Earnings vs Peers: DCC is good value based on its Price-To-Earnings Ratio (16.8x) compared to the peer average (25.9x).


Price to Earnings Ratio vs Industry

How does DCC's PE Ratio compare vs other companies in the European Industrials Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: DCC is good value based on its Price-To-Earnings Ratio (16.8x) compared to the European Industrials industry average (23.3x).


Price to Earnings Ratio vs Fair Ratio

What is DCC'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.

DCC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.8x
Fair PE Ratio22.6x

Price-To-Earnings vs Fair Ratio: DCC is good value based on its Price-To-Earnings Ratio (16.8x) compared to the estimated Fair Price-To-Earnings Ratio (22.6x).


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 DCC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£55.35
UK£71.26
+28.7%
12.2%UK£90.00UK£57.50n/a13
Jul ’25UK£55.75
UK£71.36
+28.0%
12.7%UK£90.00UK£57.50n/a12
Jun ’25UK£56.90
UK£70.78
+24.4%
14.2%UK£90.00UK£57.20n/a11
May ’25UK£55.55
UK£69.33
+24.8%
14.7%UK£90.00UK£55.00n/a11
Apr ’25UK£57.60
UK£68.89
+19.6%
15.7%UK£90.00UK£52.42n/a11
Mar ’25UK£56.42
UK£68.89
+22.1%
15.7%UK£90.00UK£52.42n/a11
Feb ’25UK£57.74
UK£68.35
+18.4%
15.8%UK£90.00UK£52.42n/a11
Jan ’25UK£57.78
UK£67.57
+17.0%
17.5%UK£90.00UK£48.50n/a11
Dec ’24UK£54.86
UK£67.57
+23.2%
17.5%UK£90.00UK£48.50n/a11
Nov ’24UK£46.07
UK£66.92
+45.3%
18.1%UK£90.00UK£48.50n/a11
Oct ’24UK£46.09
UK£66.92
+45.2%
18.1%UK£90.00UK£48.50n/a11
Sep ’24UK£43.22
UK£67.58
+56.4%
18.1%UK£90.00UK£48.50n/a11
Aug ’24UK£44.76
UK£66.67
+49.0%
17.4%UK£90.00UK£48.50n/a11
Jul ’24UK£43.98
UK£66.67
+51.6%
17.4%UK£90.00UK£48.50UK£55.7511
Jun ’24UK£46.43
UK£66.82
+43.9%
17.9%UK£90.00UK£46.50UK£56.9011
May ’24UK£49.44
UK£63.43
+28.3%
19.6%UK£80.00UK£41.00UK£55.5512
Apr ’24UK£47.18
UK£64.97
+37.7%
18.3%UK£80.00UK£41.00UK£57.6011
Mar ’24UK£45.98
UK£64.97
+41.3%
18.3%UK£80.00UK£41.00UK£56.4211
Feb ’24UK£46.20
UK£64.97
+40.6%
18.3%UK£80.00UK£41.00UK£57.7411
Jan ’24UK£40.80
UK£65.37
+60.2%
19.6%UK£80.00UK£41.00UK£57.7810
Dec ’23UK£44.28
UK£66.45
+50.1%
18.4%UK£80.00UK£45.00UK£54.8610
Nov ’23UK£48.99
UK£71.34
+45.6%
10.8%UK£80.00UK£55.50UK£46.0710
Oct ’23UK£46.89
UK£69.85
+49.0%
12.5%UK£80.00UK£55.00UK£46.0911
Sep ’23UK£47.50
UK£72.07
+51.7%
14.2%UK£90.00UK£55.00UK£43.2212
Aug ’23UK£52.68
UK£72.07
+36.8%
14.2%UK£90.00UK£55.00UK£44.7612
Jul ’23UK£50.80
UK£72.45
+42.6%
14.4%UK£90.00UK£55.00UK£43.9812

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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