Keller Group Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: KLR (£15) is trading below our estimate of fair value (£16.94)

Significantly Below Fair Value: KLR is trading below fair value, but not by a significant amount.


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for KLR. This is calculated by dividing KLR's market cap by their current earnings.
What is KLR's PE Ratio?
PE Ratio8.6x
EarningsUK£125.70m
Market CapUK£1.08b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for KLR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.6x
RNWH Renew Holdings
17.1x3.6%UK£834.1m
MGNS Morgan Sindall Group
14.5x2.8%UK£1.8b
KIE Kier Group
13x14.7%UK£663.9m
BBY Balfour Beatty
9.8x0.1%UK£2.2b
KLR Keller Group
8.6x2.4%UK£1.1b

Price-To-Earnings vs Peers: KLR is good value based on its Price-To-Earnings Ratio (8.6x) compared to the peer average (13.6x).


Price to Earnings Ratio vs Industry

How does KLR's PE Ratio compare vs other companies in the European Construction Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
KLR 8.6xIndustry Avg. 12.9xNo. of Companies18PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: KLR is good value based on its Price-To-Earnings Ratio (8.6x) compared to the European Construction industry average (12.9x).


Price to Earnings Ratio vs Fair Ratio

What is KLR'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.

KLR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.6x
Fair PE Ratio14.8x

Price-To-Earnings vs Fair Ratio: KLR is good value based on its Price-To-Earnings Ratio (8.6x) compared to the estimated Fair Price-To-Earnings Ratio (14.8x).


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 KLR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£15.00
UK£18.77
+25.1%
4.5%UK£19.80UK£17.60n/a5
Nov ’25UK£16.58
UK£18.07
+9.0%
5.8%UK£19.45UK£16.70n/a5
Oct ’25UK£16.00
UK£18.07
+12.9%
5.8%UK£19.45UK£16.70n/a5
Sep ’25UK£16.60
UK£17.77
+7.0%
5.3%UK£19.45UK£16.70n/a5
Aug ’25UK£14.58
UK£15.12
+3.7%
4.0%UK£16.00UK£14.20n/a5
Jul ’25UK£12.48
UK£15.12
+21.2%
4.0%UK£16.00UK£14.20n/a5
Jun ’25UK£12.90
UK£15.12
+17.2%
4.0%UK£16.00UK£14.20n/a5
May ’25UK£11.10
UK£13.20
+18.9%
6.6%UK£14.50UK£11.80n/a5
Apr ’25UK£10.48
UK£13.20
+26.0%
6.6%UK£14.50UK£11.80n/a5
Mar ’25UK£8.75
UK£12.65
+44.6%
8.0%UK£14.50UK£11.70n/a5
Feb ’25UK£8.57
UK£12.69
+48.0%
8.9%UK£14.50UK£11.70n/a4
Jan ’25UK£8.80
UK£12.48
+41.8%
7.5%UK£14.00UK£11.60n/a4
Dec ’24UK£8.19
UK£12.48
+52.3%
7.5%UK£14.00UK£11.60n/a4
Nov ’24UK£7.73
UK£12.48
+61.4%
7.5%UK£14.00UK£11.60UK£16.584
Oct ’24UK£7.51
UK£11.72
+56.0%
9.3%UK£13.40UK£10.50UK£16.004
Sep ’24UK£7.65
UK£11.72
+53.1%
9.3%UK£13.40UK£10.50UK£16.604
Aug ’24UK£8.24
UK£11.47
+39.1%
12.3%UK£13.40UK£9.50UK£14.584
Jul ’24UK£7.00
UK£11.14
+59.2%
12.7%UK£13.40UK£9.50UK£12.484
Jun ’24UK£6.68
UK£11.14
+66.8%
12.7%UK£13.40UK£9.50UK£12.904
May ’24UK£6.68
UK£11.14
+66.8%
12.7%UK£13.40UK£9.50UK£11.104
Apr ’24UK£6.79
UK£11.14
+64.1%
12.7%UK£13.40UK£9.50UK£10.484
Mar ’24UK£8.12
UK£11.22
+38.1%
12.5%UK£13.40UK£9.50UK£8.754
Feb ’24UK£8.24
UK£11.22
+36.1%
12.5%UK£13.40UK£9.50UK£8.574
Jan ’24UK£8.00
UK£11.59
+44.9%
9.0%UK£13.40UK£10.97UK£8.804
Dec ’23UK£7.41
UK£11.59
+56.4%
9.0%UK£13.40UK£10.97UK£8.194
Nov ’23UK£6.30
UK£11.59
+84.0%
9.0%UK£13.40UK£10.97UK£7.734

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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