RELX PLC

BATS-CHIXE:RELL Stock Report

Market Cap: UK£69.1b

RELX Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: RELL (£37.28) is trading above our estimate of fair value (£34.91)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for RELL. This is calculated by dividing RELL's market cap by their current earnings.
What is RELL's PE Ratio?
PE Ratio36.5x
EarningsUK£1.89b
Market CapUK£69.10b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RELL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.9x
EXPN Experian
37x12.7%UK£34.9b
ITRK Intertek Group
23.5x10.2%UK£7.3b
DATA GlobalData
49.8x27.7%UK£1.6b
DWF DWF Group
25.4x47.9%UK£316.4m
RELL RELX
36.5x8.1%UK£69.1b

Price-To-Earnings vs Peers: RELL is good value based on its Price-To-Earnings Ratio (36.5x) compared to the peer average (36.7x).

Price to Earnings Ratio vs Industry

How does RELL'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$20.71m
No more companies available in this PE range
No. of Companies4PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RELL is expensive based on its Price-To-Earnings Ratio (36.5x) compared to the UK Professional Services industry average (23.3x).

Price to Earnings Ratio vs Fair Ratio

What is RELL'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.

RELL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio36.5x
Fair PE Ratio37.3x

Price-To-Earnings vs Fair Ratio: RELL is good value based on its Price-To-Earnings Ratio (36.5x) compared to the estimated Fair Price-To-Earnings Ratio (37.3x).

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 RELL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£37.28
UK£39.78
+6.7%
7.5%UK£45.50UK£35.16n/a13
Nov ’25UK£36.27
UK£39.51
+8.9%
6.5%UK£43.12UK£35.16n/a13
Oct ’25UK£35.46
UK£39.18
+10.5%
6.9%UK£43.12UK£35.00n/a14
Sep ’25UK£35.35
UK£38.88
+10.0%
6.6%UK£42.50UK£35.00n/a13
Aug ’25UK£35.83
UK£38.88
+8.5%
6.6%UK£42.50UK£35.00n/a13
Jul ’25UK£35.84
UK£38.07
+6.2%
7.3%UK£42.00UK£33.00n/a13
Jun ’25UK£34.23
UK£37.81
+10.5%
7.3%UK£42.00UK£33.00n/a14
May ’25UK£32.99
UK£37.17
+12.7%
7.4%UK£42.00UK£32.50n/a14
Apr ’25UK£34.32
UK£36.88
+7.5%
7.0%UK£41.00UK£32.50n/a14
Mar ’25UK£34.11
UK£36.69
+7.6%
6.7%UK£41.00UK£32.50n/a13
Feb ’25UK£32.86
UK£34.91
+6.2%
10.3%UK£38.85UK£24.80n/a13
Jan ’25UK£31.10
UK£31.68
+1.9%
9.1%UK£37.70UK£24.80n/a13
Dec ’24UK£30.55
UK£31.10
+1.8%
7.7%UK£34.05UK£24.80n/a13
Nov ’24UK£28.59
UK£31.10
+8.8%
7.7%UK£34.05UK£24.80UK£36.2713
Oct ’24UK£27.82
UK£29.15
+4.8%
9.9%UK£32.70UK£22.00UK£35.4614
Sep ’24UK£25.76
UK£28.43
+10.4%
9.6%UK£31.00UK£22.00UK£35.3514
Aug ’24UK£25.98
UK£28.43
+9.4%
9.6%UK£31.00UK£22.00UK£35.8314
Jul ’24UK£26.22
UK£27.79
+6.0%
10.7%UK£31.00UK£20.00UK£35.8414
Jun ’24UK£25.45
UK£27.72
+8.9%
11.0%UK£31.00UK£20.00UK£34.2314
May ’24UK£26.41
UK£27.31
+3.4%
10.7%UK£31.00UK£20.00UK£32.9914
Apr ’24UK£26.22
UK£26.88
+2.5%
11.4%UK£31.00UK£20.00UK£34.3214
Mar ’24UK£25.32
UK£26.53
+4.8%
11.2%UK£29.70UK£20.00UK£34.1115
Feb ’24UK£24.05
UK£26.01
+8.2%
10.8%UK£29.50UK£20.00UK£32.8616
Jan ’24UK£22.96
UK£25.89
+12.8%
10.8%UK£29.50UK£20.00UK£31.1017
Dec ’23UK£23.26
UK£25.92
+11.4%
11.0%UK£30.20UK£20.00UK£30.5517
Nov ’23UK£22.85
UK£25.83
+13.0%
11.0%UK£30.20UK£20.00UK£28.5918

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

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