Weir Group Valuation

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

Below Fair Value: WEIR (£20.21) is trading below our estimate of fair value (£21.63)

Significantly Below Fair Value: WEIR 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 WEIR?

Other financial metrics that can be useful for relative valuation.

WEIR 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/Revenue2.2x
Enterprise Value/EBITDA13.7x
PEG Ratio1.4x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for WEIR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24x
IMI IMI
19.8x12.1%UK£4.7b
SPX Spirax-Sarco Engineering
40.5x13.0%UK£7.4b
ROR Rotork
24.8x9.1%UK£2.8b
VSVS Vesuvius
11x9.5%UK£1.3b
WEIR Weir Group
22.7x16.3%UK£5.2b

Price-To-Earnings vs Peers: WEIR is good value based on its Price-To-Earnings Ratio (22.7x) compared to the peer average (24x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: WEIR is expensive based on its Price-To-Earnings Ratio (22.7x) compared to the European Machinery industry average (16.8x).


Price to Earnings Ratio vs Fair Ratio

What is WEIR'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.

WEIR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.7x
Fair PE Ratio23.2x

Price-To-Earnings vs Fair Ratio: WEIR is good value based on its Price-To-Earnings Ratio (22.7x) compared to the estimated Fair Price-To-Earnings Ratio (23.2x).


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 WEIR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£20.21
UK£22.38
+10.7%
12.2%UK£25.75UK£15.75n/a17
Mar ’25UK£18.52
UK£22.55
+21.8%
12.5%UK£25.75UK£15.75n/a17
Feb ’25UK£18.13
UK£22.54
+24.3%
12.7%UK£25.75UK£16.00n/a17
Jan ’25UK£18.87
UK£22.41
+18.8%
12.6%UK£25.50UK£16.00n/a16
Dec ’24UK£19.00
UK£23.15
+21.9%
9.8%UK£25.50UK£17.20n/a16
Nov ’24UK£16.99
UK£23.15
+36.2%
9.8%UK£25.50UK£17.20n/a16
Oct ’24UK£19.02
UK£22.90
+20.4%
9.0%UK£25.30UK£17.90n/a15
Sep ’24UK£18.42
UK£22.51
+22.2%
9.7%UK£25.30UK£17.90n/a16
Aug ’24UK£18.75
UK£22.29
+18.9%
8.8%UK£24.20UK£17.90n/a17
Jul ’24UK£17.56
UK£22.15
+26.2%
9.3%UK£25.00UK£17.60n/a17
Jun ’24UK£17.16
UK£22.27
+29.8%
8.5%UK£25.00UK£17.60n/a17
May ’24UK£18.40
UK£22.21
+20.7%
8.4%UK£25.00UK£17.60n/a17
Apr ’24UK£18.59
UK£21.53
+15.8%
9.8%UK£25.00UK£17.60n/a17
Mar ’24UK£20.18
UK£20.17
-0.06%
15.1%UK£24.00UK£11.50UK£18.5216
Feb ’24UK£17.90
UK£19.46
+8.7%
14.7%UK£23.00UK£11.50UK£18.1316
Jan ’24UK£16.69
UK£19.39
+16.2%
15.1%UK£23.00UK£11.00UK£18.8716
Dec ’23UK£17.70
UK£19.65
+11.0%
14.2%UK£23.00UK£11.00UK£19.0016
Nov ’23UK£15.92
UK£19.27
+21.0%
13.6%UK£22.75UK£11.00UK£16.9916
Oct ’23UK£14.07
UK£19.23
+36.8%
13.6%UK£22.75UK£11.00UK£19.0216
Sep ’23UK£13.95
UK£19.30
+38.4%
12.4%UK£22.75UK£11.80UK£18.4217
Aug ’23UK£16.53
UK£19.32
+16.9%
11.9%UK£22.75UK£12.30UK£18.7517
Jul ’23UK£13.73
UK£19.56
+42.5%
13.6%UK£24.70UK£12.50UK£17.5617
Jun ’23UK£16.13
UK£19.78
+22.6%
12.9%UK£24.70UK£12.50UK£17.1617
May ’23UK£15.59
UK£20.15
+29.2%
12.0%UK£24.70UK£13.00UK£18.4018
Apr ’23UK£16.85
UK£20.25
+20.2%
11.4%UK£24.70UK£13.50UK£18.5918
Mar ’23UK£15.21
UK£20.57
+35.3%
11.0%UK£24.70UK£14.00UK£20.1818

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


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