Whitbread plc

LSE:WTB Stock Report

Market Cap: UK£5.1b

Whitbread Valuation

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

Below Fair Value: WTB (£29.14) is trading above our estimate of fair value (£20.96)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for WTB. This is calculated by dividing WTB's market cap by their current earnings.
What is WTB's PE Ratio?
PE Ratio21.4x
EarningsUK£238.80m
Market CapUK£5.08b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for WTB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28x
IHG InterContinental Hotels Group
31x11.0%UK£15.7b
TRN Trainline
34.7x17.6%UK£1.9b
PPH PPHE Hotel Group
26x27.0%UK£570.4m
OTB On the Beach Group
20.1x22.2%UK£406.6m
WTB Whitbread
21.4x14.2%UK£5.1b

Price-To-Earnings vs Peers: WTB is good value based on its Price-To-Earnings Ratio (21.4x) compared to the peer average (28x).

Price to Earnings Ratio vs Industry

How does WTB'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
WTB 21.4xIndustry Avg. 19.5xNo. of Companies5PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WTB is expensive based on its Price-To-Earnings Ratio (21.4x) compared to the UK Hospitality industry average (19.5x).

Price to Earnings Ratio vs Fair Ratio

What is WTB'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.

WTB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.4x
Fair PE Ratio27.5x

Price-To-Earnings vs Fair Ratio: WTB is good value based on its Price-To-Earnings Ratio (21.4x) compared to the estimated Fair Price-To-Earnings Ratio (27.6x).

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 WTB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£29.14
UK£38.20
+31.1%
15.9%UK£49.00UK£27.50n/a17
Dec ’25UK£28.50
UK£38.70
+35.8%
15.0%UK£49.00UK£27.50n/a17
Nov ’25UK£30.63
UK£39.61
+29.3%
13.0%UK£49.00UK£27.50n/a17
Oct ’25UK£31.54
UK£39.76
+26.1%
13.3%UK£49.00UK£27.50n/a17
Sep ’25UK£28.85
UK£39.88
+38.2%
13.8%UK£49.00UK£26.50n/a17
Aug ’25UK£29.01
UK£39.79
+37.2%
14.1%UK£49.00UK£26.50n/a17
Jul ’25UK£29.56
UK£39.79
+34.6%
14.1%UK£49.00UK£26.50n/a17
Jun ’25UK£29.53
UK£40.56
+37.3%
13.9%UK£48.00UK£26.50n/a18
May ’25UK£30.99
UK£41.12
+32.7%
13.7%UK£48.00UK£26.50n/a18
Apr ’25UK£33.14
UK£41.59
+25.5%
12.4%UK£49.00UK£30.00n/a18
Mar ’25UK£32.38
UK£40.45
+24.9%
17.7%UK£49.00UK£17.00n/a20
Feb ’25UK£35.41
UK£40.45
+14.2%
17.7%UK£49.00UK£17.00n/a20
Jan ’25UK£36.56
UK£40.14
+9.8%
17.6%UK£48.00UK£17.00n/a21
Dec ’24UK£31.82
UK£40.34
+26.8%
17.8%UK£48.00UK£17.00UK£28.5021
Nov ’24UK£33.70
UK£40.38
+19.8%
17.4%UK£48.00UK£17.00UK£30.6321
Oct ’24UK£34.64
UK£39.32
+13.5%
18.2%UK£49.00UK£17.00UK£31.5422
Sep ’24UK£34.69
UK£38.21
+10.2%
17.4%UK£47.00UK£17.00UK£28.8521
Aug ’24UK£34.81
UK£39.18
+12.5%
11.9%UK£47.00UK£26.50UK£29.0120
Jul ’24UK£33.86
UK£39.02
+15.2%
11.9%UK£47.00UK£26.50UK£29.5620
Jun ’24UK£33.11
UK£37.86
+14.3%
10.4%UK£43.00UK£26.50UK£29.5319
May ’24UK£32.47
UK£36.96
+13.8%
10.7%UK£43.00UK£26.50UK£30.9919
Apr ’24UK£29.87
UK£35.61
+19.2%
12.0%UK£42.00UK£26.50UK£33.1419
Mar ’24UK£30.53
UK£35.51
+16.3%
12.0%UK£42.00UK£26.50UK£32.3819
Feb ’24UK£30.18
UK£35.40
+17.3%
11.7%UK£42.00UK£26.50UK£35.4119
Jan ’24UK£25.70
UK£33.77
+31.4%
13.2%UK£41.00UK£25.15UK£36.5619
Dec ’23UK£26.06
UK£34.01
+30.5%
12.8%UK£40.50UK£25.15UK£31.8219

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 Analysis2024/12/20 19:37
End of Day Share Price 2024/12/20 00:00
Earnings2024/08/29
Annual Earnings2024/02/29

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

Whitbread plc is covered by 48 analysts. 16 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Alejandro AcostaAlezor Research
Pierre-Yves GauthierAlphaValue
Bérénice LacroixAlphaValue