We’ve recently updated our valuation analysis.

IMI Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 IMI?

Other financial metrics that can be useful for relative valuation.

IMI 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/Revenue2.3x
Enterprise Value/EBITDA12.9x
PEG Ratio2.3x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for IMI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average27.4x
WEIR Weir Group
26.9x15.1%UK£4.6b
ROR Rotork
36.1x15.3%UK£2.7b
SPX Spirax-Sarco Engineering
38.1x9.9%UK£8.5b
VSVS Vesuvius
7.9x-2.3%UK£1.1b
IMI IMI
18.2x7.5%UK£3.7b

Price-To-Earnings vs Peers: IMI is good value based on its Price-To-Earnings Ratio (18.2x) compared to the peer average (27.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.1%
n/an/an/a

Price-To-Earnings vs Industry: IMI is expensive based on its Price-To-Earnings Ratio (18.2x) compared to the European Machinery industry average (16.8x)


Price to Earnings Ratio vs Fair Ratio

What is IMI'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.

IMI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.2x
Fair PE Ratio19.2x

Price-To-Earnings vs Fair Ratio: IMI is good value based on its Price-To-Earnings Ratio (18.2x) compared to the estimated Fair Price-To-Earnings Ratio (19x).


Share Price vs Fair Value

What is the Fair Price of IMI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IMI (£14.47) is trading above our estimate of fair value (£12.27)

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


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 IMI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£14.53
UK£16.11
+10.9%
15.5%UK£20.00UK£11.00n/a15
Jan ’24UK£12.88
UK£16.10
+25.0%
15.8%UK£21.00UK£11.00n/a15
Dec ’23UK£13.87
UK£16.23
+17.0%
15.8%UK£21.00UK£11.00n/a15
Nov ’23UK£12.55
UK£16.36
+30.4%
15.4%UK£21.00UK£11.00n/a15
Oct ’23UK£11.19
UK£16.75
+49.7%
12.4%UK£21.00UK£13.00n/a15
Sep ’23UK£10.71
UK£16.63
+55.3%
12.4%UK£21.00UK£13.00n/a16
Aug ’23UK£12.85
UK£16.83
+31.0%
13.3%UK£21.00UK£13.00n/a16
Jul ’23UK£11.65
UK£17.53
+50.5%
14.3%UK£21.85UK£13.00n/a16
Jun ’23UK£14.07
UK£18.17
+29.2%
16.0%UK£25.00UK£14.00n/a17
May ’23UK£13.55
UK£18.83
+38.9%
15.0%UK£25.00UK£14.00n/a17
Apr ’23UK£13.58
UK£19.19
+41.3%
13.1%UK£25.00UK£15.50n/a17
Mar ’23UK£14.05
UK£19.84
+41.2%
12.5%UK£25.00UK£16.05n/a17
Feb ’23UK£16.61
UK£19.78
+19.1%
12.8%UK£25.00UK£16.05UK£14.5318
Jan ’23UK£17.36
UK£19.24
+10.8%
13.4%UK£25.00UK£14.85UK£12.8819
Dec ’22UK£17.43
UK£19.24
+10.4%
13.4%UK£25.00UK£14.85UK£13.8719
Nov ’22UK£16.46
UK£18.05
+9.7%
14.1%UK£21.85UK£11.00UK£12.5519
Oct ’22UK£16.46
UK£18.14
+10.2%
13.8%UK£21.15UK£11.00UK£11.1920
Sep ’22UK£18.18
UK£17.76
-2.3%
15.0%UK£21.15UK£11.00UK£10.7120
Aug ’22UK£17.56
UK£17.15
-2.4%
14.6%UK£21.00UK£11.00UK£12.8519
Jul ’22UK£17.44
UK£16.69
-4.3%
12.8%UK£20.65UK£11.00UK£11.6520
Jun ’22UK£17.01
UK£16.01
-5.9%
12.4%UK£18.70UK£11.00UK£14.0720
May ’22UK£15.94
UK£15.62
-2.0%
11.8%UK£18.10UK£11.00UK£13.5520
Apr ’22UK£13.25
UK£13.92
+5.0%
11.0%UK£16.00UK£9.95UK£13.5820
Mar ’22UK£12.89
UK£13.58
+5.4%
12.4%UK£16.00UK£9.95UK£14.0520
Feb ’22UK£12.54
UK£13.00
+3.7%
11.0%UK£15.20UK£9.95UK£16.6120

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


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