Tate & Lyle Valuation

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

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: TATE (£6.18) is trading below our estimate of fair value (£10.07)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

TATE 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/Revenue1.5x
Enterprise Value/EBITDA9x
PEG Ratio1.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TATE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.7x
CWK Cranswick
17.5x2.9%UK£2.2b
PFD Premier Foods
13.1x13.2%UK£1.3b
HFG Hilton Food Group
68.5x40.5%UK£755.3m
BAKK Bakkavor Group
11.5x6.5%UK£620.8m
TATE Tate & Lyle
14.2x8.8%UK£2.5b

Price-To-Earnings vs Peers: TATE is good value based on its Price-To-Earnings Ratio (14.2x) compared to the peer average (27.7x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: TATE is good value based on its Price-To-Earnings Ratio (14.2x) compared to the European Food industry average (16.9x).


Price to Earnings Ratio vs Fair Ratio

What is TATE'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.

TATE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.2x
Fair PE Ratio19.4x

Price-To-Earnings vs Fair Ratio: TATE is good value based on its Price-To-Earnings Ratio (14.2x) compared to the estimated Fair Price-To-Earnings Ratio (19.4x).


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 TATE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£6.18
UK£8.54
+38.3%
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
+38.5%
9.9%UK£10.00UK£7.00n/a9
Jan ’25UK£6.59
UK£8.75
+32.8%
10.2%UK£10.10UK£7.20n/a10
Dec ’24UK£6.24
UK£8.75
+40.2%
10.2%UK£10.10UK£7.20n/a10
Nov ’24UK£6.32
UK£8.90
+40.9%
9.8%UK£10.10UK£7.50n/a10
Oct ’24UK£6.86
UK£9.00
+31.3%
8.8%UK£10.10UK£7.50n/a11
Sep ’24UK£6.98
UK£9.19
+31.6%
7.0%UK£10.10UK£8.10n/a11
Aug ’24UK£7.49
UK£9.21
+22.9%
7.1%UK£10.10UK£8.10n/a11
Jul ’24UK£7.26
UK£9.20
+26.7%
7.1%UK£10.10UK£8.10n/a11
Jun ’24UK£7.93
UK£9.05
+14.3%
5.9%UK£9.75UK£8.10n/a11
May ’24UK£8.15
UK£8.99
+10.4%
5.4%UK£9.75UK£8.10n/a9
Apr ’24UK£7.85
UK£8.99
+14.6%
5.4%UK£9.75UK£8.10n/a9
Mar ’24UK£8.00
UK£9.06
+13.2%
5.3%UK£9.75UK£8.10UK£6.0511
Feb ’24UK£7.53
UK£8.82
+17.2%
4.1%UK£9.40UK£8.00UK£6.2010
Jan ’24UK£7.11
UK£8.79
+23.5%
4.6%UK£9.35UK£7.80UK£6.5910
Dec ’23UK£7.36
UK£8.79
+19.4%
4.6%UK£9.35UK£7.80UK£6.2410
Nov ’23UK£7.02
UK£8.85
+26.1%
5.6%UK£9.80UK£7.80UK£6.3211
Oct ’23UK£6.80
UK£9.05
+33.2%
6.3%UK£9.80UK£7.80UK£6.8611
Sep ’23UK£7.52
UK£9.16
+21.8%
4.6%UK£9.80UK£8.50UK£6.9811
Aug ’23UK£8.01
UK£9.16
+14.4%
4.6%UK£9.80UK£8.50UK£7.4911
Jul ’23UK£7.60
UK£9.29
+22.2%
6.2%UK£10.50UK£8.50UK£7.2610
Jun ’23UK£7.52
UK£9.92
+31.9%
7.5%UK£10.91UK£8.50UK£7.939
May ’23UK£9.07
UK£10.43
+15.0%
3.2%UK£10.97UK£9.92UK£8.159
Apr ’23UK£8.51
UK£10.43
+22.5%
3.2%UK£10.97UK£9.92UK£7.859
Mar ’23UK£8.76
UK£10.40
+18.8%
3.2%UK£10.97UK£9.92UK£8.009

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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