J Sainsbury plc

LSE:SBRY Stock Report

Market Cap: UK£6.1b

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 (£2.63) is trading below our estimate of fair value (£4.65)

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?

Other financial metrics that can be useful for relative valuation.

SBRY 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/Revenue0.4x
Enterprise Value/EBITDA7.5x
PEG Ratio3.2x

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 Average12.1x
MKS Marks and Spencer Group
12.6x7.8%UK£5.1b
FIVE X5 Retail Group
9.5x32.7%US$6.4b
TSCO Tesco
11.2x2.8%UK£19.7b
CBOX Cake Box Holdings
15xn/aUK£68.0m
SBRY J Sainsbury
79.8x25.0%UK£6.1b

Price-To-Earnings vs Peers: SBRY is expensive based on its Price-To-Earnings Ratio (79.8x) compared to the peer average (12.1x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.5%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.5%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: SBRY is expensive based on its Price-To-Earnings Ratio (79.8x) compared to the European Consumer Retailing industry average (15x).

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 Ratio79.8x
Fair PE Ratio40x

Price-To-Earnings vs Fair Ratio: SBRY is expensive based on its Price-To-Earnings Ratio (79.8x) compared to the estimated Fair Price-To-Earnings Ratio (40x).

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£2.59
UK£3.02
+16.6%
11.6%UK£3.60UK£2.35n/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£2.35n/a13
Nov ’24UK£2.62
UK£2.70
+3.2%
8.1%UK£3.00UK£2.25n/a12
Oct ’24UK£2.53
UK£2.71
+7.2%
8.4%UK£3.00UK£2.25n/a12
Sep ’24UK£2.70
UK£2.69
-0.6%
10.1%UK£3.00UK£2.09n/a12
Aug ’24UK£2.79
UK£2.69
-3.6%
10.6%UK£3.00UK£2.09n/a11
Jul ’24UK£2.69
UK£2.69
-0.07%
11.7%UK£3.15UK£2.09n/a11
Jun ’24UK£2.73
UK£2.62
-4.1%
12.3%UK£3.15UK£2.15n/a11
May ’24UK£2.76
UK£2.60
-5.8%
15.1%UK£3.20UK£2.00n/a11
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
Nov ’23UK£2.00
UK£2.17
+8.8%
22.1%UK£3.20UK£1.55UK£2.6212
Oct ’23UK£1.74
UK£2.32
+33.1%
18.7%UK£3.20UK£1.80UK£2.5312
Sep ’23UK£2.00
UK£2.49
+24.4%
15.2%UK£3.20UK£1.90UK£2.7013
Aug ’23UK£2.21
UK£2.49
+12.8%
15.2%UK£3.20UK£1.90UK£2.7913
Jul ’23UK£2.07
UK£2.46
+18.8%
15.3%UK£3.20UK£1.90UK£2.6914
Jun ’23UK£2.27
UK£2.61
+15.0%
14.0%UK£3.20UK£1.90UK£2.7316
May ’23UK£2.33
UK£2.76
+18.4%
13.1%UK£3.20UK£1.90UK£2.7616
Apr ’23UK£2.49
UK£2.81
+13.1%
11.8%UK£3.25UK£2.10UK£2.7916

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

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