Deliveroo plc

LSE:ROO Stock Report

Market Cap: UK£2.2b

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 (£1.42) 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 Ratio43.3x
EarningsUK£49.90m
Market CapUK£2.16b

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 Average24.3x
GRG Greggs
20.4x6.0%UK£2.8b
DOM Domino's Pizza Group
15.7x5.8%UK£1.2b
MAB Mitchells & Butlers
9.8x7.0%UK£1.5b
SSPG SSP Group
51.3x36.3%UK£1.4b
ROO Deliveroo
43.3x40.7%UK£2.2b

Price-To-Earnings vs Peers: ROO is expensive based on its Price-To-Earnings Ratio (43.3x) compared to the peer average (24.3x).

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$2.36m
No more companies available in this PE range
ROO 43.3xIndustry Avg. 20.1xNo. of Companies5PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ROO is expensive based on its Price-To-Earnings Ratio (43.3x) compared to the UK Hospitality industry average (20.1x).

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 Ratio43.3x
Fair PE Ratio36.9x

Price-To-Earnings vs Fair Ratio: ROO is expensive based on its Price-To-Earnings Ratio (43.3x) compared to the estimated Fair Price-To-Earnings Ratio (36.9x).

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£1.42
UK£1.75
+23.1%
19.9%UK£2.45UK£1.15n/a15
Dec ’25UK£1.50
UK£1.73
+15.4%
20.0%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 more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 09:31
End of Day Share Price 2024/12/20 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

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

Deliveroo plc is covered by 28 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Samuel LourenszArete Research Services LLP
Adrian SanchezBanco Santander
Andrew RossBarclays