Smiths Group plc

LSE:SMIN Stock Report

Market Cap: UK£5.8b

Smiths Group Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: SMIN (£16.96) is trading below our estimate of fair value (£30.56)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SMIN. This is calculated by dividing SMIN's market cap by their current earnings.
What is SMIN's PE Ratio?
PE Ratio23.3x
EarningsUK£250.00m
Market CapUK£5.82b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SMIN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.2x
DCC DCC
16.9x10.9%UK£5.6b
WEIR Weir Group
24.6x19.0%UK£5.4b
SPX Spirax Group
24.8x9.0%UK£4.8b
DPLM Diploma
42.7x14.9%UK£5.5b
SMIN Smiths Group
23.3x15.3%UK£5.8b

Price-To-Earnings vs Peers: SMIN is good value based on its Price-To-Earnings Ratio (23.3x) compared to the peer average (27.2x).

Price to Earnings Ratio vs Industry

How does SMIN's PE Ratio compare vs other companies in the European Industrials Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SMIN 23.3xIndustry Avg. 16.8xNo. of Companies6PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SMIN is expensive based on its Price-To-Earnings Ratio (23.3x) compared to the European Industrials industry average (16.9x).

Price to Earnings Ratio vs Fair Ratio

What is SMIN'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.

SMIN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.3x
Fair PE Ratio22.6x

Price-To-Earnings vs Fair Ratio: SMIN is expensive based on its Price-To-Earnings Ratio (23.3x) compared to the estimated Fair Price-To-Earnings Ratio (22.6x).

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 SMIN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£16.96
UK£19.77
+16.6%
8.1%UK£21.80UK£17.25n/a13
Nov ’25UK£15.42
UK£19.78
+28.3%
8.1%UK£21.80UK£17.25n/a13
Oct ’25UK£16.73
UK£19.91
+19.0%
8.8%UK£22.50UK£17.25n/a13
Sep ’25UK£18.02
UK£20.05
+11.3%
8.2%UK£22.50UK£17.50n/a14
Aug ’25UK£17.50
UK£20.17
+15.3%
8.2%UK£22.50UK£17.50n/a13
Jul ’25UK£17.03
UK£20.05
+17.7%
7.9%UK£22.50UK£17.50n/a13
Jun ’25UK£17.22
UK£20.05
+16.4%
7.9%UK£22.50UK£17.50n/a13
May ’25UK£16.04
UK£19.93
+24.3%
7.7%UK£22.50UK£17.50n/a13
Apr ’25UK£16.42
UK£19.86
+21.0%
8.1%UK£22.50UK£17.50n/a13
Mar ’25UK£16.21
UK£19.78
+22.0%
8.1%UK£22.40UK£17.50n/a13
Feb ’25UK£16.31
UK£19.70
+20.8%
8.2%UK£22.40UK£17.50n/a13
Jan ’25UK£17.64
UK£19.25
+9.1%
7.5%UK£22.20UK£17.00n/a14
Dec ’24UK£16.60
UK£19.24
+16.0%
7.7%UK£22.20UK£17.00n/a13
Nov ’24UK£16.09
UK£19.24
+19.6%
7.5%UK£21.80UK£17.00UK£15.4213
Oct ’24UK£16.20
UK£18.99
+17.3%
7.1%UK£21.80UK£17.00UK£16.7311
Sep ’24UK£16.35
UK£18.83
+15.1%
8.6%UK£22.40UK£15.80UK£18.0212
Aug ’24UK£16.95
UK£18.83
+11.1%
8.6%UK£22.40UK£15.80UK£17.5012
Jul ’24UK£16.44
UK£18.63
+13.3%
9.4%UK£22.40UK£15.80UK£17.0312
Jun ’24UK£16.11
UK£18.63
+15.7%
9.8%UK£22.40UK£15.80UK£17.2211
May ’24UK£16.81
UK£17.80
+5.9%
14.8%UK£22.40UK£11.50UK£16.0411
Apr ’24UK£17.17
UK£17.75
+3.4%
14.5%UK£22.40UK£11.50UK£16.4211
Mar ’24UK£17.89
UK£17.51
-2.1%
14.5%UK£22.50UK£11.50UK£16.2112
Feb ’24UK£17.66
UK£16.99
-3.8%
12.6%UK£19.80UK£11.50UK£16.3111
Jan ’24UK£15.99
UK£16.47
+3.1%
10.8%UK£18.00UK£11.50UK£17.6411
Dec ’23UK£15.96
UK£16.47
+3.2%
10.8%UK£18.00UK£11.50UK£16.6011
Nov ’23UK£15.62
UK£16.59
+6.2%
12.0%UK£18.25UK£11.00UK£16.0911

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

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