Tate & Lyle Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: TATEL (£7.37) is trading below our estimate of fair value (£23.49)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for TATEL. This is calculated by dividing TATEL's market cap by their current earnings.
What is TATEL's PE Ratio?
PE Ratio21.2x
EarningsUK£155.00m
Market CapUK£3.28b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TATEL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.1x
CWK Cranswick
24x8.0%UK£2.7b
PFD Premier Foods
14.8x6.3%UK£1.6b
HFG Hilton Food Group
17.8x10.5%UK£825.3m
BAKK Bakkavor Group
11.7x11.2%UK£751.9m
TATEL Tate & Lyle
21.2x19.3%UK£3.3b

Price-To-Earnings vs Peers: TATEL is expensive based on its Price-To-Earnings Ratio (21.2x) compared to the peer average (17.1x).


Price to Earnings Ratio vs Industry

How does TATEL's PE Ratio compare vs other companies in the European Food Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies17PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TATEL is expensive based on its Price-To-Earnings Ratio (21.2x) compared to the European Food industry average (13.5x).


Price to Earnings Ratio vs Fair Ratio

What is TATEL'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.

TATEL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.2x
Fair PE Ratio21.9x

Price-To-Earnings vs Fair Ratio: TATEL is good value based on its Price-To-Earnings Ratio (21.2x) compared to the estimated Fair Price-To-Earnings Ratio (21.9x).


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 TATEL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£7.37
UK£8.75
+18.9%
7.6%UK£9.54UK£7.40n/a9
Nov ’25UK£7.59
UK£8.59
+13.3%
8.1%UK£9.35UK£7.00n/a10
Oct ’25UK£6.76
UK£8.61
+27.4%
7.8%UK£9.35UK£7.00n/a10
Sep ’25UK£6.77
UK£8.66
+27.8%
9.0%UK£10.00UK£7.00n/a10
Aug ’25UK£6.48
UK£8.66
+33.7%
9.0%UK£10.00UK£7.00n/a10
Jul ’25UK£6.00
UK£8.66
+44.2%
9.0%UK£10.00UK£7.00n/a10
Jun ’25UK£6.88
UK£8.66
+25.9%
9.0%UK£10.00UK£7.00n/a10
May ’25UK£6.51
UK£8.57
+31.7%
9.0%UK£10.00UK£7.00n/a11
Apr ’25UK£6.20
UK£8.54
+37.7%
9.9%UK£10.00UK£7.00n/a10
Mar ’25UK£6.05
UK£8.46
+39.9%
10.1%UK£10.00UK£7.00n/a9
Feb ’25UK£6.20
UK£8.58
+38.3%
9.9%UK£10.00UK£7.00n/a9
Jan ’25UK£6.63
UK£8.75
+32.0%
10.2%UK£10.10UK£7.20n/a10
Dec ’24UK£6.21
UK£8.75
+40.9%
10.2%UK£10.10UK£7.20n/a10
Nov ’24UK£6.31
UK£8.90
+41.1%
9.8%UK£10.10UK£7.50UK£7.5910
Oct ’24UK£6.87
UK£9.00
+31.1%
8.8%UK£10.10UK£7.50UK£6.7611
Sep ’24UK£6.98
UK£9.19
+31.7%
7.0%UK£10.10UK£8.10UK£6.7711
Aug ’24UK£7.50
UK£9.21
+22.8%
7.1%UK£10.10UK£8.10UK£6.4811
Jul ’24UK£7.30
UK£9.20
+26.0%
7.1%UK£10.10UK£8.10UK£6.0011
Jun ’24UK£7.92
UK£9.05
+14.3%
5.9%UK£9.75UK£8.10UK£6.8811
May ’24UK£8.14
UK£9.05
+11.1%
5.4%UK£9.75UK£8.10UK£6.5110
Apr ’24UK£7.86
UK£9.05
+15.1%
5.4%UK£9.75UK£8.10UK£6.2010
Mar ’24UK£8.03
UK£9.06
+12.9%
5.3%UK£9.75UK£8.10UK£6.0511
Feb ’24UK£7.53
UK£8.82
+17.1%
4.1%UK£9.40UK£8.00UK£6.2010
Jan ’24UK£7.15
UK£8.79
+22.9%
4.6%UK£9.35UK£7.80UK£6.6310
Dec ’23UK£7.36
UK£8.79
+19.4%
4.6%UK£9.35UK£7.80UK£6.2110
Nov ’23UK£7.02
UK£8.85
+26.1%
5.6%UK£9.80UK£7.80UK£6.3111

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


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