Schroders plc

LSE:SDR Stock Report

Market Cap: UK£4.9b

Schroders Valuation

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

Below Fair Value: SDR (£3.13) is trading below our estimate of fair value (£5.02)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SDR. This is calculated by dividing SDR's market cap by their current earnings.
What is SDR's PE Ratio?
PE Ratio13.1x
EarningsUK£376.50m
Market CapUK£4.94b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SDR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.4x
ICG Intermediate Capital Group
14.9x11.7%UK£5.9b
HL. Hargreaves Lansdown
17.6x1.6%UK£5.2b
PHLL Petershill Partners
9.5x38.3%UK£2.6b
ABDN abrdn
7.8x-20.9%UK£2.5b
SDR Schroders
13.1x12.9%UK£4.9b

Price-To-Earnings vs Peers: SDR is expensive based on its Price-To-Earnings Ratio (13.1x) compared to the peer average (12.4x).

Price to Earnings Ratio vs Industry

How does SDR's PE Ratio compare vs other companies in the GB Capital Markets Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CBA CEIBA Investments
2.8xn/aUS$42.52m
PNIX Phoenix Digital Assets
1.1xn/aUS$32.25m
IX. i(x) Net Zero
0.1xn/aUS$8.94m
APQ APQ Global
0.4xn/aUS$5.78m
SDR 13.1xIndustry Avg. 12.7xNo. of Companies15PE01224364860+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SDR is expensive based on its Price-To-Earnings Ratio (13.1x) compared to the UK Capital Markets industry average (12.1x).

Price to Earnings Ratio vs Fair Ratio

What is SDR'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.

SDR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.1x
Fair PE Ratio19.5x

Price-To-Earnings vs Fair Ratio: SDR is good value based on its Price-To-Earnings Ratio (13.1x) compared to the estimated Fair Price-To-Earnings Ratio (19.5x).

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 SDR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£3.13
UK£3.82
+22.0%
11.9%UK£4.96UK£3.15n/a15
Nov ’25UK£3.59
UK£4.03
+12.4%
11.4%UK£4.96UK£3.45n/a15
Oct ’25UK£3.47
UK£4.00
+15.4%
11.8%UK£4.96UK£3.45n/a15
Sep ’25UK£3.42
UK£4.03
+17.8%
11.7%UK£4.96UK£3.50n/a15
Aug ’25UK£3.55
UK£4.16
+17.2%
13.0%UK£5.00UK£3.50n/a15
Jul ’25UK£3.63
UK£4.18
+14.9%
11.8%UK£5.05UK£3.50n/a15
Jun ’25UK£3.92
UK£4.16
+6.2%
12.1%UK£5.05UK£3.50n/a15
May ’25UK£3.49
UK£4.30
+23.3%
10.4%UK£5.05UK£3.60n/a15
Apr ’25UK£3.77
UK£4.37
+16.1%
10.4%UK£5.05UK£3.70n/a15
Mar ’25UK£3.94
UK£4.45
+13.1%
9.6%UK£5.14UK£3.70n/a16
Feb ’25UK£4.03
UK£4.49
+11.6%
9.3%UK£5.15UK£3.75n/a16
Jan ’25UK£4.30
UK£4.48
+4.2%
10.0%UK£5.21UK£3.50n/a16
Dec ’24UK£4.06
UK£4.43
+9.1%
9.3%UK£5.15UK£3.50n/a16
Nov ’24UK£3.73
UK£4.41
+18.1%
9.3%UK£5.15UK£3.50UK£3.5915
Oct ’24UK£4.07
UK£4.63
+13.7%
8.9%UK£5.36UK£3.80UK£3.4715
Sep ’24UK£4.12
UK£4.59
+11.4%
8.7%UK£5.36UK£3.80UK£3.4215
Aug ’24UK£4.52
UK£4.66
+3.0%
8.4%UK£5.38UK£4.10UK£3.5515
Jul ’24UK£4.37
UK£4.71
+7.7%
8.4%UK£5.60UK£4.10UK£3.6314
Jun ’24UK£4.56
UK£4.71
+3.4%
8.4%UK£5.60UK£4.10UK£3.9214
May ’24UK£4.86
UK£4.71
-3.0%
8.4%UK£5.60UK£4.10UK£3.4914
Apr ’24UK£4.60
UK£4.75
+3.4%
7.2%UK£5.30UK£4.25UK£3.7714
Mar ’24UK£5.00
UK£4.70
-6.0%
9.0%UK£5.50UK£3.95UK£3.9414
Feb ’24UK£4.79
UK£4.70
-1.8%
9.0%UK£5.50UK£3.95UK£4.0314
Jan ’24UK£4.36
UK£4.74
+8.7%
8.6%UK£5.25UK£3.95UK£4.3013
Dec ’23UK£4.63
UK£4.69
+1.3%
9.2%UK£5.25UK£3.77UK£4.0613
Nov ’23UK£4.00
UK£4.79
+19.8%
9.5%UK£5.60UK£3.77UK£3.7314

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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