Marks and Spencer Group plc

BATS-CHIXE:MKSL Stock Report

Market Cap: UK£6.0b

Marks and Spencer Group Valuation

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

Below Fair Value: MKSL (£2.93) is trading below our estimate of fair value (£4.44)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

MKSL 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/Revenue0.6x
Enterprise Value/EBITDA6.9x
PEG Ratio2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MKSL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.2x
SBRY J Sainsbury
43.9x25.3%UK£6.0b
FIVE X5 Retail Group
5.9xn/aUS$6.0b
TSCO Tesco
12x2.8%UK£21.1b
CBOX Cake Box Holdings
14.9xn/aUK£69.2m
MKSL Marks and Spencer Group
14x6.9%UK£6.0b

Price-To-Earnings vs Peers: MKSL is good value based on its Price-To-Earnings Ratio (14x) compared to the peer average (19.3x).

Price to Earnings Ratio vs Industry

How does MKSL's PE Ratio compare vs other companies in the European Consumer Retailing Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.4%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.4%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: MKSL is good value based on its Price-To-Earnings Ratio (14x) compared to the European Consumer Retailing industry average (14.2x).

Price to Earnings Ratio vs Fair Ratio

What is MKSL'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.

MKSL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14x
Fair PE Ratio16.9x

Price-To-Earnings vs Fair Ratio: MKSL is good value based on its Price-To-Earnings Ratio (14x) compared to the estimated Fair Price-To-Earnings Ratio (16.9x).

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 MKSL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£2.93
UK£3.35
+14.2%
11.9%UK£3.80UK£2.30n/a16
Jun ’25UK£3.03
UK£3.22
+6.3%
11.8%UK£3.75UK£2.30n/a16
May ’25UK£2.54
UK£3.04
+19.8%
10.2%UK£3.50UK£2.30n/a16
Apr ’25UK£2.65
UK£2.98
+12.7%
10.2%UK£3.45UK£2.30n/a16
Mar ’25UK£2.35
UK£2.94
+25.0%
10.5%UK£3.45UK£2.30n/a17
Feb ’25UK£2.42
UK£2.93
+20.8%
10.5%UK£3.45UK£2.30n/a17
Jan ’25UK£2.73
UK£2.71
-0.8%
15.9%UK£3.30UK£1.80n/a17
Dec ’24UK£2.55
UK£2.57
+0.7%
19.9%UK£3.30UK£1.60n/a17
Nov ’24UK£2.25
UK£2.34
+4.0%
18.3%UK£3.00UK£1.60n/a18
Oct ’24UK£2.37
UK£2.32
-2.0%
18.3%UK£3.00UK£1.60n/a19
Sep ’24UK£2.28
UK£2.21
-2.8%
18.1%UK£3.00UK£1.50n/a20
Aug ’24UK£2.07
UK£1.98
-4.5%
15.1%UK£2.60UK£1.44n/a20
Jul ’24UK£1.92
UK£1.96
+2.0%
13.7%UK£2.50UK£1.44n/a20
Jun ’24UK£1.81
UK£1.86
+2.7%
15.9%UK£2.35UK£1.20UK£3.0319
May ’24UK£1.64
UK£1.65
+0.6%
14.2%UK£2.10UK£1.20UK£2.5420
Apr ’24UK£1.67
UK£1.62
-2.8%
13.4%UK£2.10UK£1.20UK£2.6520
Mar ’24UK£1.58
UK£1.55
-2.2%
14.8%UK£2.10UK£1.15UK£2.3521
Feb ’24UK£1.51
UK£1.48
-2.0%
13.7%UK£1.98UK£1.15UK£2.4221
Jan ’24UK£1.24
UK£1.36
+9.6%
19.3%UK£1.98UK£0.90UK£2.7321
Dec ’23UK£1.22
UK£1.35
+10.2%
19.4%UK£1.98UK£0.90UK£2.5521
Nov ’23UK£1.11
UK£1.38
+24.4%
23.2%UK£1.98UK£0.90UK£2.2521
Oct ’23UK£0.98
UK£1.64
+66.2%
24.1%UK£2.75UK£1.10UK£2.3721
Sep ’23UK£1.21
UK£1.73
+42.5%
19.9%UK£2.75UK£1.20UK£2.2821
Aug ’23UK£1.40
UK£1.73
+23.3%
19.9%UK£2.75UK£1.20UK£2.0721
Jul ’23UK£1.38
UK£1.86
+35.5%
21.3%UK£2.75UK£1.34UK£1.9221
Jun ’23UK£1.51
UK£1.89
+25.3%
22.0%UK£2.75UK£1.34UK£1.8121

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

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