Schroders plc

LSE:SDR Stock Report

Market Cap: UK£5.9b

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 (£3.75) is trading below our estimate of fair value (£5.71)

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?

Other financial metrics that can be useful for relative valuation.

SDR 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/Revenue0.6x
Enterprise Value/EBITDA2.3x
PEG Ratio1.6x

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 Average12.9x
ICP Intermediate Capital Group
14.9x7.5%UK£6.1b
HL. Hargreaves Lansdown
11.6x3.0%UK£3.5b
EMG Man Group
16.7x20.5%UK£3.1b
PHLL Petershill Partners
8.5x18.0%UK£2.2b
SDR Schroders
15.2x9.3%UK£5.9b

Price-To-Earnings vs Peers: SDR is expensive based on its Price-To-Earnings Ratio (15.2x) compared to the peer average (12.9x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.0%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.0%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: SDR is good value based on its Price-To-Earnings Ratio (15.2x) compared to the UK Capital Markets industry average (15.2x).

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 Ratio15.2x
Fair PE Ratio17.9x

Price-To-Earnings vs Fair Ratio: SDR is good value based on its Price-To-Earnings Ratio (15.2x) compared to the estimated Fair Price-To-Earnings Ratio (17.9x).

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 SDR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£3.75
UK£4.37
+16.7%
10.3%UK£5.05UK£3.70n/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£3.50n/a15
Oct ’24UK£4.07
UK£4.63
+13.7%
8.9%UK£5.36UK£3.80n/a15
Sep ’24UK£4.12
UK£4.59
+11.4%
8.7%UK£5.36UK£3.80n/a15
Aug ’24UK£4.52
UK£4.66
+3.0%
8.4%UK£5.38UK£4.10n/a15
Jul ’24UK£4.37
UK£4.71
+7.7%
8.4%UK£5.60UK£4.10n/a14
Jun ’24UK£4.56
UK£4.71
+3.4%
8.4%UK£5.60UK£4.10n/a14
May ’24UK£4.86
UK£4.71
-3.0%
8.4%UK£5.60UK£4.10n/a14
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
Oct ’23UK£3.89
UK£5.20
+33.5%
13.5%UK£7.30UK£4.34UK£4.0713
Sep ’23UK£4.40
UK£5.25
+19.4%
8.5%UK£6.21UK£4.34UK£4.1217
Aug ’23UK£5.02
UK£5.10
+1.8%
9.4%UK£6.02UK£4.30UK£4.5217
Jul ’23UK£4.50
UK£5.47
+21.6%
10.1%UK£6.55UK£4.27UK£4.3717
Jun ’23UK£4.92
UK£5.62
+14.2%
10.5%UK£6.55UK£4.27UK£4.5616
May ’23UK£4.83
UK£5.66
+17.2%
9.7%UK£6.55UK£4.27UK£4.8617
Apr ’23UK£5.48
UK£5.93
+8.3%
6.5%UK£6.80UK£5.37UK£4.6018

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

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