Morgan Sindall Group plc

LSE:MGNS Stock Report

Market Cap: UK£1.6b

Morgan Sindall Group Valuation

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

Below Fair Value: MGNS (£33.2) is trading below our estimate of fair value (£48.07)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

MGNS 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/EBITDA8.6x
PEG Ratio30.3x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MGNS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.9x
KLR Keller Group
9.7x2.4%UK£1.2b
RNWH Renew Holdings
18.6x3.6%UK£911.7m
BBY Balfour Beatty
10.1x1.1%UK£2.3b
KIE Kier Group
13.1x14.7%UK£666.4m
MGNS Morgan Sindall Group
12.6x0.4%UK£1.6b

Price-To-Earnings vs Peers: MGNS is good value based on its Price-To-Earnings Ratio (12.6x) compared to the peer average (12.6x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a3.6%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a3.6%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: MGNS is good value based on its Price-To-Earnings Ratio (12.6x) compared to the European Construction industry average (13.1x).

Price to Earnings Ratio vs Fair Ratio

What is MGNS'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.

MGNS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.6x
Fair PE Ratio13.8x

Price-To-Earnings vs Fair Ratio: MGNS is good value based on its Price-To-Earnings Ratio (12.6x) compared to the estimated Fair Price-To-Earnings Ratio (13.8x).

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 MGNS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£33.20
UK£30.94
-6.8%
4.3%UK£32.90UK£29.30n/a5
Oct ’25UK£31.00
UK£30.94
-0.2%
4.3%UK£32.90UK£29.30n/a5
Sep ’25UK£29.90
UK£30.94
+3.5%
4.3%UK£32.90UK£29.30n/a5
Aug ’25UK£28.35
UK£27.50
-3.0%
5.0%UK£30.00UK£26.30n/a5
Jul ’25UK£25.20
UK£27.50
+9.1%
5.0%UK£30.00UK£26.30n/a5
Jun ’25UK£25.20
UK£27.18
+7.9%
5.0%UK£30.00UK£26.00n/a6
May ’25UK£22.50
UK£26.93
+19.7%
5.9%UK£30.00UK£25.00n/a6
Apr ’25UK£23.20
UK£26.09
+12.5%
3.6%UK£27.60UK£25.00n/a6
Mar ’25UK£23.45
UK£26.09
+11.3%
3.6%UK£27.60UK£25.00n/a6
Feb ’25UK£22.85
UK£24.32
+6.4%
8.7%UK£27.60UK£21.00n/a5
Jan ’25UK£22.15
UK£24.32
+9.8%
8.7%UK£27.60UK£21.00n/a5
Dec ’24UK£20.55
UK£24.32
+18.3%
8.7%UK£27.60UK£21.00n/a5
Nov ’24UK£18.98
UK£24.20
+27.5%
8.9%UK£27.60UK£21.00n/a5
Oct ’24UK£20.55
UK£24.20
+17.8%
8.9%UK£27.60UK£21.00UK£31.005
Sep ’24UK£19.76
UK£24.00
+21.5%
9.2%UK£27.60UK£21.00UK£29.905
Aug ’24UK£19.24
UK£24.92
+29.5%
16.4%UK£31.00UK£20.00UK£28.355
Jul ’24UK£18.30
UK£24.92
+36.2%
16.4%UK£31.00UK£20.00UK£25.205
Jun ’24UK£18.60
UK£24.26
+30.4%
17.2%UK£29.70UK£19.00UK£25.205
May ’24UK£16.94
UK£24.22
+43.0%
17.0%UK£29.50UK£19.00UK£22.505
Apr ’24UK£16.90
UK£24.22
+43.3%
17.0%UK£29.50UK£19.00UK£23.205
Mar ’24UK£17.92
UK£24.22
+35.2%
17.0%UK£29.50UK£19.00UK£23.455
Feb ’24UK£16.56
UK£24.64
+48.8%
22.5%UK£30.00UK£15.00UK£22.855
Jan ’24UK£15.30
UK£24.64
+61.0%
22.5%UK£30.00UK£15.00UK£22.155
Dec ’23UK£16.24
UK£24.64
+51.7%
22.5%UK£30.00UK£15.00UK£20.555
Nov ’23UK£15.78
UK£25.68
+62.7%
21.2%UK£30.00UK£15.00UK£18.985
Oct ’23UK£14.78
UK£26.38
+78.5%
15.4%UK£30.00UK£18.50UK£20.555

Analyst Forecast: Target price is lower than the current share price.

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