Intertek Group plc

BATS-CHIXE:ITRKL Stock Report

Market Cap: UK£7.3b

Intertek Group Valuation

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

Below Fair Value: ITRKL (£44.87) is trading below our estimate of fair value (£62.53)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ITRKL. This is calculated by dividing ITRKL's market cap by their current earnings.
What is ITRKL's PE Ratio?
PE Ratio23.5x
EarningsUK£308.70m
Market CapUK£7.25b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ITRKL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.2x
EXPN Experian
37x12.7%UK£34.9b
DATA GlobalData
49.8x27.7%UK£1.6b
REL RELX
36.5x8.1%UK£69.1b
DWF DWF Group
25.4x47.9%UK£316.4m
ITRKL Intertek Group
23.5x10.2%UK£7.3b

Price-To-Earnings vs Peers: ITRKL is good value based on its Price-To-Earnings Ratio (23.5x) compared to the peer average (41.1x).

Price to Earnings Ratio vs Industry

How does ITRKL's PE Ratio compare vs other companies in the GB Professional Services Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
IBPO iEnergizer
1.7xn/aUS$140.06m
TEK Tekcapital
1.5xn/aUS$20.74m
No more companies available in this PE range
No. of Companies4PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ITRKL is expensive based on its Price-To-Earnings Ratio (23.5x) compared to the UK Professional Services industry average (23.5x).

Price to Earnings Ratio vs Fair Ratio

What is ITRKL'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.

ITRKL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.5x
Fair PE Ratio28x

Price-To-Earnings vs Fair Ratio: ITRKL is good value based on its Price-To-Earnings Ratio (23.5x) compared to the estimated Fair Price-To-Earnings Ratio (28x).

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 ITRKL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£44.87
UK£54.92
+22.4%
10.2%UK£65.50UK£42.90n/a17
Nov ’25UK£47.20
UK£54.92
+16.4%
10.2%UK£65.50UK£42.90n/a17
Oct ’25UK£51.58
UK£55.27
+7.2%
10.8%UK£67.50UK£41.00n/a16
Sep ’25UK£49.34
UK£54.19
+9.8%
13.3%UK£67.50UK£37.00n/a17
Aug ’25UK£49.60
UK£53.54
+8.0%
12.5%UK£63.50UK£37.00n/a17
Jul ’25UK£47.44
UK£53.54
+12.9%
12.5%UK£63.50UK£37.00n/a17
Jun ’25UK£47.86
UK£53.07
+10.9%
11.8%UK£60.00UK£37.00n/a17
May ’25UK£48.96
UK£51.97
+6.1%
12.1%UK£60.00UK£37.00n/a17
Apr ’25UK£49.97
UK£50.05
+0.2%
13.2%UK£59.00UK£37.00n/a17
Mar ’25UK£45.82
UK£46.90
+2.4%
12.3%UK£57.00UK£36.00n/a16
Feb ’25UK£44.81
UK£46.91
+4.7%
12.3%UK£57.00UK£36.00n/a17
Jan ’25UK£42.57
UK£45.38
+6.6%
13.2%UK£57.00UK£34.00n/a17
Dec ’24UK£40.26
UK£44.70
+11.0%
13.7%UK£57.00UK£34.00n/a17
Nov ’24UK£37.74
UK£45.43
+20.4%
13.1%UK£57.00UK£36.00UK£47.2017
Oct ’24UK£41.33
UK£45.90
+11.1%
12.8%UK£57.00UK£36.00UK£51.5817
Sep ’24UK£41.51
UK£45.70
+10.1%
12.7%UK£57.00UK£36.00UK£49.3417
Aug ’24UK£43.37
UK£45.61
+5.2%
12.3%UK£57.00UK£36.00UK£49.6018
Jul ’24UK£42.53
UK£45.51
+7.0%
12.8%UK£57.00UK£36.00UK£47.4418
Jun ’24UK£42.01
UK£45.59
+8.5%
12.8%UK£57.00UK£36.00UK£47.8618
May ’24UK£41.62
UK£44.98
+8.1%
12.3%UK£55.00UK£35.50UK£48.9618
Apr ’24UK£40.61
UK£45.85
+12.9%
12.2%UK£57.50UK£36.00UK£49.9716
Mar ’24UK£41.65
UK£45.98
+10.4%
12.5%UK£57.50UK£36.00UK£45.8216
Feb ’24UK£43.97
UK£45.26
+2.9%
12.5%UK£57.50UK£36.00UK£44.8115
Jan ’24UK£40.39
UK£46.15
+14.3%
13.8%UK£60.00UK£36.00UK£42.5716
Dec ’23UK£40.68
UK£46.26
+13.7%
13.4%UK£60.00UK£36.00UK£40.2617
Nov ’23UK£36.76
UK£47.35
+28.8%
11.8%UK£60.00UK£36.00UK£37.7417

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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