J Sainsbury Valuation

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

Below Fair Value: SBRY (£2.8) is trading below our estimate of fair value (£5.95)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SBRY. This is calculated by dividing SBRY's market cap by their current earnings.
What is SBRY's PE Ratio?
PE Ratio37.2x
EarningsUK£175.00m
Market CapUK£6.47b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SBRY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.6x
MKS Marks and Spencer Group
15.9x9.3%UK£7.9b
TSCO Tesco
13.2x1.5%UK£24.9b
CBOX Cake Box Holdings
15.8xn/aUK£78.0m
VINO Virgin Wines UK
13.7xn/aUK£18.9m
SBRY J Sainsbury
37.2x20.6%UK£6.5b

Price-To-Earnings vs Peers: SBRY is expensive based on its Price-To-Earnings Ratio (37.2x) compared to the peer average (14.6x).


Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SBRY 37.2xIndustry Avg. 15.2xNo. of Companies10PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SBRY is expensive based on its Price-To-Earnings Ratio (37.2x) compared to the European Consumer Retailing industry average (15.2x).


Price to Earnings Ratio vs Fair Ratio

What is SBRY'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.

SBRY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio37.2x
Fair PE Ratio26.1x

Price-To-Earnings vs Fair Ratio: SBRY is expensive based on its Price-To-Earnings Ratio (37.2x) compared to the estimated Fair Price-To-Earnings Ratio (26.1x).


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 SBRY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£2.80
UK£3.08
+10.0%
9.1%UK£3.55UK£2.45n/a14
Dec ’25UK£2.61
UK£3.08
+17.9%
9.1%UK£3.55UK£2.45n/a14
Nov ’25UK£2.65
UK£3.14
+18.4%
8.6%UK£3.60UK£2.60n/a13
Oct ’25UK£2.94
UK£3.12
+6.1%
8.3%UK£3.60UK£2.60n/a13
Sep ’25UK£2.92
UK£3.03
+3.5%
10.4%UK£3.60UK£2.40n/a13
Aug ’25UK£2.76
UK£3.03
+9.8%
10.4%UK£3.60UK£2.40n/a13
Jul ’25UK£2.58
UK£3.03
+17.4%
10.4%UK£3.60UK£2.40n/a13
Jun ’25UK£2.77
UK£3.04
+9.8%
10.1%UK£3.60UK£2.40n/a12
May ’25UK£2.64
UK£3.02
+14.3%
11.4%UK£3.60UK£2.36n/a12
Apr ’25UK£2.70
UK£3.01
+11.5%
11.6%UK£3.60UK£2.35n/a12
Mar ’25UK£2.49
UK£2.97
+19.2%
11.9%UK£3.60UK£2.35n/a13
Feb ’25UK£2.67
UK£2.93
+9.6%
13.4%UK£3.60UK£2.23n/a13
Jan ’25UK£3.03
UK£2.89
-4.4%
12.1%UK£3.50UK£2.35n/a13
Dec ’24UK£2.85
UK£2.82
-1.1%
9.0%UK£3.20UK£2.35UK£2.6113
Nov ’24UK£2.62
UK£2.70
+3.2%
8.1%UK£3.00UK£2.25UK£2.6512
Oct ’24UK£2.53
UK£2.71
+7.2%
8.4%UK£3.00UK£2.25UK£2.9412
Sep ’24UK£2.70
UK£2.69
-0.6%
10.1%UK£3.00UK£2.09UK£2.9212
Aug ’24UK£2.79
UK£2.69
-3.6%
10.6%UK£3.00UK£2.09UK£2.7611
Jul ’24UK£2.69
UK£2.69
-0.07%
11.7%UK£3.15UK£2.09UK£2.5811
Jun ’24UK£2.73
UK£2.62
-4.1%
12.3%UK£3.15UK£2.15UK£2.7711
May ’24UK£2.76
UK£2.60
-5.8%
15.1%UK£3.20UK£2.00UK£2.6411
Apr ’24UK£2.79
UK£2.50
-10.2%
15.2%UK£3.20UK£2.00UK£2.7011
Mar ’24UK£2.66
UK£2.44
-8.2%
14.3%UK£3.20UK£2.00UK£2.4911
Feb ’24UK£2.64
UK£2.44
-7.5%
14.3%UK£3.20UK£2.00UK£2.6711
Jan ’24UK£2.18
UK£2.25
+3.5%
17.5%UK£3.20UK£1.80UK£3.0313
Dec ’23UK£2.22
UK£2.21
-0.6%
20.5%UK£3.20UK£1.61UK£2.8512

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


Discover undervalued companies