Deliveroo plc

LSE:ROO Stock Report

Market Cap: UK£2.3b

Deliveroo Valuation

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

Below Fair Value: ROO (£1.48) is trading below our estimate of fair value (£3.25)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ROO. This is calculated by dividing ROO's market cap by their current earnings.
What is ROO's PE Ratio?
PE Ratio45.2x
EarningsUK£49.90m
Market CapUK£2.26b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ROO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.7x
GRG Greggs
20.1x6.3%UK£2.8b
DOM Domino's Pizza Group
17.5x9.0%UK£1.3b
MAB Mitchells & Butlers
9.8x7.6%UK£1.5b
JDW J D Wetherspoon
15.5x12.1%UK£756.9m
ROO Deliveroo
45.2x36.8%UK£2.3b

Price-To-Earnings vs Peers: ROO is expensive based on its Price-To-Earnings Ratio (45.2x) compared to the peer average (15.7x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
TAST Tasty
0.4x-75.9%US$2.37m
No more companies available in this PE range
ROO 45.2xIndustry Avg. 19.3xNo. of Companies5PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ROO is expensive based on its Price-To-Earnings Ratio (45.2x) compared to the UK Hospitality industry average (19.3x).

Price to Earnings Ratio vs Fair Ratio

What is ROO'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.

ROO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio45.2x
Fair PE Ratio34.9x

Price-To-Earnings vs Fair Ratio: ROO is expensive based on its Price-To-Earnings Ratio (45.2x) compared to the estimated Fair Price-To-Earnings Ratio (34.9x).

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 ROO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.48
UK£1.72
+16.0%
20.3%UK£2.45UK£1.15n/a15
Nov ’25UK£1.40
UK£1.73
+24.2%
20.0%UK£2.45UK£1.15n/a15
Oct ’25UK£1.56
UK£1.69
+8.7%
21.3%UK£2.57UK£1.15n/a16
Sep ’25UK£1.53
UK£1.65
+8.2%
22.2%UK£2.57UK£1.10n/a17
Aug ’25UK£1.32
UK£1.57
+18.4%
20.1%UK£2.20UK£1.10n/a17
Jul ’25UK£1.31
UK£1.59
+21.1%
19.2%UK£2.20UK£1.10n/a16
Jun ’25UK£1.37
UK£1.58
+15.6%
17.7%UK£2.17UK£1.10n/a17
May ’25UK£1.31
UK£1.57
+20.2%
17.7%UK£2.17UK£1.10n/a17
Apr ’25UK£1.18
UK£1.56
+31.6%
18.8%UK£2.17UK£1.05n/a17
Mar ’25UK£1.13
UK£1.55
+37.0%
20.9%UK£2.33UK£0.95n/a17
Feb ’25UK£1.16
UK£1.53
+31.7%
21.1%UK£2.33UK£0.95n/a16
Jan ’25UK£1.28
UK£1.55
+21.4%
21.7%UK£2.22UK£0.95n/a16
Dec ’24UK£1.41
UK£1.54
+9.3%
20.2%UK£2.22UK£0.95UK£1.5016
Nov ’24UK£1.33
UK£1.49
+11.9%
19.8%UK£2.15UK£0.95UK£1.4014
Oct ’24UK£1.20
UK£1.44
+20.5%
23.6%UK£2.15UK£0.95UK£1.5614
Sep ’24UK£1.15
UK£1.49
+30.1%
21.4%UK£2.15UK£1.05UK£1.5316
Aug ’24UK£1.28
UK£1.39
+8.6%
24.1%UK£2.15UK£1.04UK£1.3214
Jul ’24UK£1.15
UK£1.34
+16.8%
25.7%UK£2.15UK£0.88UK£1.3114
Jun ’24UK£1.05
UK£1.32
+25.5%
26.3%UK£2.15UK£0.88UK£1.3713
May ’24UK£1.09
UK£1.31
+19.9%
25.8%UK£2.15UK£0.88UK£1.3114
Apr ’24UK£0.92
UK£1.29
+41.4%
26.2%UK£2.15UK£0.88UK£1.1814
Mar ’24UK£0.81
UK£1.29
+58.9%
25.4%UK£2.15UK£0.91UK£1.1314
Feb ’24UK£0.92
UK£1.29
+40.6%
25.4%UK£2.15UK£0.91UK£1.1614
Jan ’24UK£0.86
UK£1.27
+48.7%
23.9%UK£2.15UK£0.90UK£1.2815
Dec ’23UK£0.93
UK£1.27
+36.7%
23.9%UK£2.15UK£0.89UK£1.4115

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

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