Howden Joinery Group Plc

LSE:HWDN Stock Report

Market Cap: UK£4.8b

Howden Joinery Group Valuation

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

Below Fair Value: HWDN (£8.72) is trading above our estimate of fair value (£7.82)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

HWDN 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/Revenue2.2x
Enterprise Value/EBITDA13.5x
PEG Ratio2.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HWDN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.7x
DPLM Diploma
40.6x14.2%UK£4.8b
RS1 RS Group
14.2x6.6%UK£3.4b
BNZL Bunzl
19.4x3.1%UK£10.2b
GFTU Grafton Group
12.6x1.1%UK£1.9b
HWDN Howden Joinery Group
18.8x7.6%UK£4.8b

Price-To-Earnings vs Peers: HWDN is good value based on its Price-To-Earnings Ratio (18.8x) compared to the peer average (21.7x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a7.0%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a7.0%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: HWDN is expensive based on its Price-To-Earnings Ratio (18.8x) compared to the UK Trade Distributors industry average (12.9x).


Price to Earnings Ratio vs Fair Ratio

What is HWDN'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.

HWDN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.8x
Fair PE Ratio20.9x

Price-To-Earnings vs Fair Ratio: HWDN is good value based on its Price-To-Earnings Ratio (18.8x) compared to the estimated Fair Price-To-Earnings Ratio (20.9x).


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 HWDN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£8.72
UK£8.96
+2.8%
11.7%UK£10.19UK£6.80n/a15
Apr ’25UK£9.07
UK£8.88
-2.1%
11.3%UK£10.19UK£6.80n/a15
Mar ’25UK£8.46
UK£8.53
+0.8%
12.4%UK£10.00UK£6.70n/a15
Feb ’25UK£7.96
UK£8.17
+2.6%
11.4%UK£9.90UK£6.70n/a15
Jan ’25UK£8.14
UK£7.99
-1.8%
9.8%UK£9.90UK£6.70n/a15
Dec ’24UK£7.38
UK£7.99
+8.3%
9.8%UK£9.90UK£6.70n/a15
Nov ’24UK£6.44
UK£8.18
+27.1%
9.3%UK£10.00UK£6.80n/a13
Oct ’24UK£7.36
UK£8.16
+10.9%
9.0%UK£10.00UK£6.80n/a14
Sep ’24UK£7.33
UK£8.16
+11.4%
9.0%UK£10.00UK£6.80n/a14
Aug ’24UK£7.36
UK£8.16
+11.0%
9.0%UK£10.00UK£6.80n/a14
Jul ’24UK£6.42
UK£7.86
+22.4%
9.1%UK£8.95UK£6.10n/a13
Jun ’24UK£6.61
UK£7.88
+19.2%
9.0%UK£8.95UK£6.10n/a13
May ’24UK£6.85
UK£7.92
+15.6%
9.2%UK£8.95UK£6.10n/a12
Apr ’24UK£6.98
UK£7.92
+13.4%
9.2%UK£8.95UK£6.10UK£9.0712
Mar ’24UK£7.08
UK£7.87
+11.1%
11.4%UK£8.95UK£5.90UK£8.4613
Feb ’24UK£6.95
UK£7.41
+6.7%
13.8%UK£8.95UK£5.80UK£7.9613
Jan ’24UK£5.62
UK£7.44
+32.5%
14.3%UK£9.30UK£5.80UK£8.1413
Dec ’23UK£5.99
UK£7.53
+25.7%
13.2%UK£9.30UK£5.90UK£7.3813
Nov ’23UK£5.22
UK£7.90
+51.5%
14.9%UK£10.00UK£6.20UK£6.4412
Oct ’23UK£5.05
UK£8.20
+62.2%
13.3%UK£10.00UK£6.20UK£7.3612
Sep ’23UK£5.52
UK£8.47
+53.3%
10.6%UK£10.00UK£7.25UK£7.3312
Aug ’23UK£6.80
UK£8.90
+30.9%
11.7%UK£10.22UK£7.25UK£7.3613
Jul ’23UK£6.05
UK£9.45
+56.1%
13.3%UK£11.30UK£7.30UK£6.4213
Jun ’23UK£6.75
UK£9.73
+44.2%
9.9%UK£11.30UK£7.50UK£6.6113
May ’23UK£7.61
UK£9.97
+30.9%
6.1%UK£11.30UK£9.20UK£6.8513
Apr ’23UK£7.81
UK£10.11
+29.4%
6.5%UK£11.30UK£9.20UK£6.9812

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


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