IMI plc

LSE:IMI Stock Report

Market Cap: UK£4.3b

IMI Valuation

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

Below Fair Value: IMI (£16.95) is trading below our estimate of fair value (£24.27)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for IMI. This is calculated by dividing IMI's market cap by their current earnings.
What is IMI's PE Ratio?
PE Ratio17.1x
EarningsUK£253.30m
Market CapUK£4.32b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.5x
SPX Spirax Group
24.8x9.0%UK£4.8b
WEIR Weir Group
24.6x19.0%UK£5.4b
ROR Rotork
22.4x9.0%UK£2.7b
VSVS Vesuvius
10x12.2%UK£1.0b
IMI IMI
17.1x12.0%UK£4.3b

Price-To-Earnings vs Peers: IMI is good value based on its Price-To-Earnings Ratio (17.1x) compared to the peer average (20.5x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
IMI 17.1xIndustry Avg. 17.3xNo. of Companies30PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IMI is good value based on its Price-To-Earnings Ratio (17.1x) compared to the European Machinery industry average (17.5x).

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 Ratio17.1x
Fair PE Ratio20.2x

Price-To-Earnings vs Fair Ratio: IMI is good value based on its Price-To-Earnings Ratio (17.1x) compared to the estimated Fair Price-To-Earnings Ratio (20.2x).

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£16.95
UK£21.25
+25.4%
10.0%UK£25.00UK£16.50n/a17
Nov ’25UK£16.72
UK£21.26
+27.2%
10.0%UK£25.00UK£16.50n/a17
Oct ’25UK£17.88
UK£21.28
+19.0%
10.0%UK£25.00UK£16.50n/a17
Sep ’25UK£18.31
UK£21.19
+15.8%
9.9%UK£25.00UK£16.50n/a18
Aug ’25UK£18.30
UK£21.04
+15.0%
9.8%UK£25.00UK£16.50n/a17
Jul ’25UK£17.63
UK£21.01
+19.1%
10.1%UK£25.00UK£16.50n/a17
Jun ’25UK£18.55
UK£20.80
+12.1%
10.5%UK£25.00UK£16.50n/a17
May ’25UK£17.59
UK£20.43
+16.1%
10.9%UK£25.00UK£16.50n/a17
Apr ’25UK£18.15
UK£20.16
+11.1%
10.7%UK£25.00UK£16.50n/a17
Mar ’25UK£17.26
UK£19.39
+12.4%
12.0%UK£25.00UK£15.55n/a18
Feb ’25UK£17.11
UK£18.94
+10.7%
10.1%UK£21.60UK£15.55n/a17
Jan ’25UK£16.84
UK£18.74
+11.3%
11.2%UK£22.00UK£15.55n/a17
Dec ’24UK£15.80
UK£18.78
+18.8%
11.2%UK£22.00UK£15.55n/a17
Nov ’24UK£14.45
UK£18.73
+29.6%
12.6%UK£22.50UK£13.50UK£16.7217
Oct ’24UK£15.68
UK£18.84
+20.2%
12.2%UK£22.50UK£13.50UK£17.8816
Sep ’24UK£14.98
UK£18.81
+25.6%
12.0%UK£22.00UK£13.50UK£18.3116
Aug ’24UK£16.26
UK£18.66
+14.8%
12.3%UK£22.00UK£13.20UK£18.3016
Jul ’24UK£16.40
UK£18.49
+12.7%
12.6%UK£22.00UK£13.20UK£17.6316
Jun ’24UK£16.07
UK£18.44
+14.8%
12.8%UK£22.00UK£13.20UK£18.5516
May ’24UK£15.95
UK£17.75
+11.3%
12.2%UK£21.60UK£12.25UK£17.5916
Apr ’24UK£15.34
UK£17.18
+12.0%
12.3%UK£20.00UK£11.20UK£18.1516
Mar ’24UK£15.79
UK£16.27
+3.1%
15.2%UK£20.00UK£11.00UK£17.2616
Feb ’24UK£14.53
UK£16.11
+10.9%
15.5%UK£20.00UK£11.00UK£17.1115
Jan ’24UK£12.88
UK£16.10
+25.0%
15.8%UK£21.00UK£11.00UK£16.8415
Dec ’23UK£13.87
UK£16.23
+17.0%
15.8%UK£21.00UK£11.00UK£15.8015
Nov ’23UK£12.55
UK£16.36
+30.4%
15.4%UK£21.00UK£11.00UK£14.4515

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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