The Weir Group PLC

LSE:WEIR Stock Report

Market Cap: UK£5.5b

Weir Group Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • 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 (£21.66) is trading above our estimate of fair value (£21.44)

Significantly Below Fair Value: WEIR is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for WEIR. This is calculated by dividing WEIR's market cap by their current earnings.
What is WEIR's PE Ratio?
PE Ratio25.3x
EarningsUK£220.60m
Market CapUK£5.51b

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 Average20.5x
SPX Spirax Group
25.1x9.1%UK£4.9b
IMI IMI
17.3x12.0%UK£4.4b
ROR Rotork
22.6x8.8%UK£2.7b
BOY Bodycote
16.8x21.3%UK£1.1b
WEIR Weir Group
25.3x19.0%UK£5.5b

Price-To-Earnings vs Peers: WEIR is expensive based on its Price-To-Earnings Ratio (25.3x) compared to the peer average (20.5x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
WEIR 25.3xIndustry Avg. 17.5xNo. of Companies29PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WEIR is expensive based on its Price-To-Earnings Ratio (25.3x) compared to the European Machinery industry average (17.5x).

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 Ratio25.3x
Fair PE Ratio24.4x

Price-To-Earnings vs Fair Ratio: WEIR is expensive based on its Price-To-Earnings Ratio (25.3x) compared to the estimated Fair Price-To-Earnings Ratio (24.4x).

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£21.66
UK£23.39
+8.0%
6.0%UK£25.70UK£20.80n/a19
Nov ’25UK£21.00
UK£22.99
+9.5%
7.3%UK£25.70UK£19.30n/a19
Oct ’25UK£21.42
UK£22.95
+7.1%
7.6%UK£25.70UK£19.30n/a19
Sep ’25UK£20.06
UK£23.06
+15.0%
7.3%UK£25.70UK£19.30n/a20
Aug ’25UK£19.80
UK£23.16
+17.0%
7.9%UK£26.00UK£19.30n/a20
Jul ’25UK£19.86
UK£23.06
+16.1%
9.3%UK£26.00UK£18.60n/a20
Jun ’25UK£21.24
UK£22.78
+7.3%
9.7%UK£26.00UK£18.60n/a20
May ’25UK£20.26
UK£22.51
+11.1%
10.0%UK£25.75UK£17.80n/a18
Apr ’25UK£20.22
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£17.20UK£21.0016
Oct ’24UK£19.02
UK£22.90
+20.4%
9.0%UK£25.30UK£17.90UK£21.4215
Sep ’24UK£18.42
UK£22.51
+22.2%
9.7%UK£25.30UK£17.90UK£20.0616
Aug ’24UK£18.75
UK£22.29
+18.9%
8.8%UK£24.20UK£17.90UK£19.8017
Jul ’24UK£17.56
UK£22.15
+26.2%
9.3%UK£25.00UK£17.60UK£19.8617
Jun ’24UK£17.16
UK£22.27
+29.8%
8.5%UK£25.00UK£17.60UK£21.2417
May ’24UK£18.40
UK£22.21
+20.7%
8.4%UK£25.00UK£17.60UK£20.2617
Apr ’24UK£18.59
UK£21.53
+15.8%
9.8%UK£25.00UK£17.60UK£20.2217
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

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

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