Whitbread Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 (£32.83) is trading above our estimate of fair value (£23.74)

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?

Other financial metrics that can be useful for relative valuation.

WTB 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/Revenue3.5x
Enterprise Value/EBITDA12.2x
PEG Ratio2.5x

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 Average37.8x
TRN Trainline
76.4x23.8%UK£1.7b
IHG InterContinental Hotels Group
22.9x6.4%UK£13.6b
PPH PPHE Hotel Group
26.2x28.6%UK£586.8m
OTB On the Beach Group
25.6x24.9%UK£271.8m
WTB Whitbread
17.8x7.0%UK£6.0b

Price-To-Earnings vs Peers: WTB is good value based on its Price-To-Earnings Ratio (17.8x) compared to the peer average (37.8x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a31.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a31.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: WTB is good value based on its Price-To-Earnings Ratio (17.8x) compared to the UK Hospitality industry average (23.5x).


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 Ratio17.8x
Fair PE Ratio24.2x

Price-To-Earnings vs Fair Ratio: WTB is good value based on its Price-To-Earnings Ratio (17.8x) compared to the estimated Fair Price-To-Earnings Ratio (24.2x).


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£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£17.00n/a21
Nov ’24UK£33.70
UK£40.38
+19.8%
17.4%UK£48.00UK£17.00n/a21
Oct ’24UK£34.64
UK£39.32
+13.5%
18.2%UK£49.00UK£17.00n/a22
Sep ’24UK£34.69
UK£38.21
+10.2%
17.4%UK£47.00UK£17.00n/a21
Aug ’24UK£34.81
UK£39.18
+12.5%
11.9%UK£47.00UK£26.50n/a20
Jul ’24UK£33.86
UK£39.02
+15.2%
11.9%UK£47.00UK£26.50n/a20
Jun ’24UK£33.11
UK£37.86
+14.3%
10.4%UK£43.00UK£26.50n/a19
May ’24UK£32.47
UK£36.96
+13.8%
10.7%UK£43.00UK£26.50n/a19
Apr ’24UK£29.87
UK£35.61
+19.2%
12.0%UK£42.00UK£26.50n/a19
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
Nov ’23UK£25.71
UK£34.44
+34.0%
13.2%UK£41.00UK£25.15UK£33.7019
Oct ’23UK£23.02
UK£35.06
+52.3%
13.9%UK£41.00UK£25.15UK£34.6419
Sep ’23UK£24.63
UK£35.64
+44.7%
13.9%UK£41.00UK£25.15UK£34.6919
Aug ’23UK£26.16
UK£35.67
+36.4%
14.0%UK£41.50UK£25.15UK£34.8119
Jul ’23UK£25.09
UK£36.07
+43.7%
13.0%UK£41.50UK£25.15UK£33.8619
Jun ’23UK£26.29
UK£36.57
+39.1%
11.4%UK£41.00UK£25.15UK£33.1120
May ’23UK£28.17
UK£36.57
+29.8%
11.4%UK£41.00UK£25.15UK£32.4720
Apr ’23UK£28.73
UK£36.57
+27.3%
11.4%UK£41.00UK£25.15UK£29.8720
Mar ’23UK£27.01
UK£36.93
+36.7%
10.4%UK£41.00UK£26.00UK£30.5321

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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