J Sainsbury plc

LSE:SBRY Stock Report

Market Cap: UK£6.4b

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 (£2.75) is trading below our estimate of fair value (£5.94)

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 Ratio36.6x
EarningsUK£175.00m
Market CapUK£6.40b

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 Average14.3x
MKS Marks and Spencer Group
15.6x9.3%UK£7.9b
TSCO Tesco
13.2x1.5%UK£25.0b
CBOX Cake Box Holdings
15.8xn/aUK£78.0m
VINO Virgin Wines UK
12.7xn/aUK£17.5m
SBRY J Sainsbury
36.6x20.6%UK£6.4b

Price-To-Earnings vs Peers: SBRY is expensive based on its Price-To-Earnings Ratio (36.6x) compared to the peer average (14.3x).

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 36.6xIndustry Avg. 15.1xNo. of Companies10PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SBRY is expensive based on its Price-To-Earnings Ratio (36.6x) compared to the European Consumer Retailing industry average (15.1x).

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 Ratio36.6x
Fair PE Ratio26.1x

Price-To-Earnings vs Fair Ratio: SBRY is expensive based on its Price-To-Earnings Ratio (36.6x) 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£2.75
UK£3.08
+11.9%
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.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/18 07:39
End of Day Share Price 2024/12/18 00:00
Earnings2024/09/14
Annual Earnings2024/03/02

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

J Sainsbury plc is covered by 45 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Pierre-Yves GauthierAlphaValue
Virginie BlinAlphaValue
Nicholas BubbArden Partners Plc.