We’ve recently updated our valuation analysis.

Rotork Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • 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 ROR?

Other financial metrics that can be useful for relative valuation.

ROR 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/Revenue4.1x
Enterprise Value/EBITDA19x
PEG Ratio2.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ROR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.5x
IMI IMI
17.9x9.5%UK£3.7b
WEIR Weir Group
26.6x15.1%UK£4.6b
BOY Bodycote
18.3x11.4%UK£1.1b
VSVS Vesuvius
7.2x0.8%UK£1.0b
ROR Rotork
31.9x12.8%UK£2.4b

Price-To-Earnings vs Peers: ROR is expensive based on its Price-To-Earnings Ratio (31.9x) compared to the peer average (17.5x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.0%
n/an/an/a

Price-To-Earnings vs Industry: ROR is expensive based on its Price-To-Earnings Ratio (31.9x) compared to the European Machinery industry average (15.3x)


Price to Earnings Ratio vs Fair Ratio

What is ROR'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.

ROR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.9x
Fair PE Ratio18.2x

Price-To-Earnings vs Fair Ratio: ROR is expensive based on its Price-To-Earnings Ratio (31.9x) compared to the estimated Fair Price-To-Earnings Ratio (18.2x).


Share Price vs Fair Value

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

Below Fair Value: ROR (£2.81) is trading above our estimate of fair value (£2.6)

Significantly Below Fair Value: ROR 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 ROR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£2.81
UK£3.20
+14.0%
11.5%UK£4.20UK£2.70n/a13
Nov ’23UK£2.60
UK£3.20
+22.9%
11.5%UK£4.20UK£2.70n/a13
Oct ’23UK£2.34
UK£3.22
+37.3%
11.4%UK£4.20UK£2.70n/a13
Sep ’23UK£2.33
UK£3.20
+37.1%
11.0%UK£4.20UK£2.70n/a14
Aug ’23UK£2.58
UK£3.21
+24.3%
12.8%UK£4.20UK£2.70n/a15
Jul ’23UK£2.39
UK£3.52
+47.3%
9.4%UK£4.20UK£3.10n/a14
Jun ’23UK£2.80
UK£3.46
+23.7%
11.6%UK£4.20UK£2.55n/a15
May ’23UK£2.93
UK£3.60
+22.9%
8.8%UK£4.20UK£3.11n/a16
Apr ’23UK£3.21
UK£3.64
+13.4%
8.3%UK£4.20UK£3.11n/a17
Mar ’23UK£3.09
UK£3.65
+18.0%
8.9%UK£4.20UK£3.10n/a17
Feb ’23UK£3.39
UK£3.70
+9.2%
9.4%UK£4.20UK£3.10n/a17
Jan ’23UK£3.57
UK£3.68
+3.0%
9.3%UK£4.10UK£3.10n/a17
Dec ’22UK£3.50
UK£3.66
+4.5%
9.9%UK£4.24UK£3.10n/a17
Nov ’22UK£3.55
UK£3.75
+5.7%
10.2%UK£4.25UK£3.10UK£2.6017
Oct ’22UK£3.41
UK£3.79
+10.9%
10.4%UK£4.25UK£3.10UK£2.3418
Sep ’22UK£3.33
UK£3.79
+13.8%
10.2%UK£4.25UK£3.10UK£2.3318
Aug ’22UK£3.61
UK£3.75
+4.0%
11.5%UK£4.30UK£3.10UK£2.5818
Jul ’22UK£3.46
UK£3.75
+8.5%
11.5%UK£4.30UK£3.10UK£2.3918
Jun ’22UK£3.45
UK£3.72
+8.0%
11.8%UK£4.30UK£3.10UK£2.8018
May ’22UK£3.45
UK£3.72
+8.1%
11.8%UK£4.30UK£3.10UK£2.9318
Apr ’22UK£3.64
UK£3.70
+1.6%
12.8%UK£4.30UK£2.95UK£3.2118
Mar ’22UK£3.58
UK£3.47
-2.9%
13.7%UK£4.25UK£2.80UK£3.0918
Feb ’22UK£3.29
UK£3.36
+2.3%
11.4%UK£4.10UK£2.80UK£3.3918
Jan ’22UK£3.18
UK£3.18
+0.09%
8.7%UK£3.70UK£2.80UK£3.5718
Dec ’21UK£3.00
UK£3.11
+3.6%
9.5%UK£3.70UK£2.55UK£3.5018
Nov ’21UK£2.81
UK£2.95
+4.9%
12.8%UK£3.70UK£2.30UK£3.5518

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


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