Compass Group PLC

BATS-CHIXE:CPGL Stock Report

Market Cap: UK£44.4b

Compass Group Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: CPGL (£26.2) is trading above our estimate of fair value (£18.15)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CPGL. This is calculated by dividing CPGL's market cap by their current earnings.
What is CPGL's PE Ratio?
PE Ratio31.8x
EarningsUS$1.76b
Market CapUS$56.02b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CPGL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28.1x
GRG Greggs
19.6x7.0%UK£2.7b
ROO Deliveroo
44.5x36.8%UK£2.2b
MAB Mitchells & Butlers
31.2x32.6%UK£1.4b
DOM Domino's Pizza Group
17x9.0%UK£1.3b
CPGL Compass Group
31.8x12.1%UK£44.4b

Price-To-Earnings vs Peers: CPGL is expensive based on its Price-To-Earnings Ratio (31.8x) compared to the peer average (27.7x).

Price to Earnings Ratio vs Industry

How does CPGL's PE Ratio compare vs other companies in the GB Hospitality Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
TAST Tasty
0.4x-75.9%US$2.75m
No more companies available in this PE range
No. of Companies5PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CPGL is expensive based on its Price-To-Earnings Ratio (31.8x) compared to the UK Hospitality industry average (20.7x).

Price to Earnings Ratio vs Fair Ratio

What is CPGL'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.

CPGL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.8x
Fair PE Ratio35.9x

Price-To-Earnings vs Fair Ratio: CPGL is good value based on its Price-To-Earnings Ratio (31.8x) compared to the estimated Fair Price-To-Earnings Ratio (35.9x).

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 CPGL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£26.20
UK£25.00
-4.6%
9.2%UK£30.00UK£19.50n/a20
Nov ’25UK£25.49
UK£24.58
-3.6%
7.3%UK£28.00UK£19.50n/a20
Oct ’25UK£24.17
UK£24.43
+1.1%
7.5%UK£28.00UK£19.50n/a20
Sep ’25UK£23.99
UK£24.19
+0.8%
6.3%UK£26.50UK£19.50n/a21
Aug ’25UK£23.82
UK£24.18
+1.5%
6.3%UK£26.50UK£19.50n/a21
Jul ’25UK£21.77
UK£24.01
+10.3%
6.2%UK£26.50UK£19.50n/a20
Jun ’25UK£21.86
UK£23.96
+9.7%
6.3%UK£26.50UK£19.50n/a20
May ’25UK£22.03
UK£23.80
+8.0%
6.2%UK£26.00UK£19.50n/a20
Apr ’25UK£23.23
UK£23.80
+2.5%
6.2%UK£26.00UK£19.50n/a20
Mar ’25UK£21.67
UK£23.69
+9.3%
6.1%UK£26.00UK£19.50n/a20
Feb ’25UK£21.44
UK£23.54
+9.8%
5.7%UK£26.00UK£21.00n/a21
Jan ’25UK£21.50
UK£23.20
+7.9%
6.6%UK£26.00UK£19.25n/a21
Dec ’24UK£20.25
UK£23.14
+14.3%
7.0%UK£26.00UK£19.25n/a21
Nov ’24UK£20.92
UK£22.91
+9.5%
7.5%UK£26.00UK£19.25UK£25.4920
Oct ’24UK£20.09
UK£22.20
+10.5%
9.5%UK£26.00UK£16.75UK£24.1720
Sep ’24UK£19.92
UK£22.22
+11.6%
9.7%UK£26.00UK£16.75UK£23.9919
Aug ’24UK£20.36
UK£21.92
+7.6%
9.1%UK£24.50UK£16.75UK£23.8220
Jul ’24UK£22.01
UK£21.89
-0.6%
9.3%UK£24.50UK£16.75UK£21.7720
Jun ’24UK£22.20
UK£22.03
-0.7%
9.3%UK£25.00UK£16.75UK£21.8622
May ’24UK£20.93
UK£21.26
+1.6%
9.0%UK£25.00UK£16.25UK£22.0324
Apr ’24UK£20.39
UK£21.26
+4.3%
9.4%UK£25.00UK£16.25UK£23.2324
Mar ’24UK£19.13
UK£21.24
+11.0%
9.5%UK£25.00UK£16.25UK£21.6724
Feb ’24UK£19.06
UK£21.00
+10.2%
9.1%UK£25.00UK£16.25UK£21.4424
Jan ’24UK£19.27
UK£20.89
+8.4%
9.1%UK£25.00UK£16.25UK£21.5023
Dec ’23UK£18.70
UK£20.80
+11.3%
9.8%UK£25.00UK£15.75UK£20.2522
Nov ’23UK£18.53
UK£20.29
+9.5%
10.2%UK£25.00UK£15.75UK£20.9221

Analyst Forecast: Target price is lower than the current share price.

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