Smith & Nephew plc

BATS-CHIXE:SNL Stock Report

Market Cap: UK£8.2b

Smith & Nephew Valuation

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

Below Fair Value: SNL (£9.39) is trading below our estimate of fair value (£15.49)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SNL 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/Revenue2.4x
Enterprise Value/EBITDA12.7x
PEG Ratio1.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SNL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.3x
NIOX NIOX Group
23.2x17.1%UK£255.4m
CTEC ConvaTec Group
37.2x21.0%UK£4.4b
EKF EKF Diagnostics Holdings
26.7xn/aUK£127.7m
MDC Mediclinic International
21.9x10.7%UK£3.7b
SNL Smith & Nephew
34.5x22.5%UK£8.2b

Price-To-Earnings vs Peers: SNL is expensive based on its Price-To-Earnings Ratio (34.5x) compared to the peer average (29.1x).


Price to Earnings Ratio vs Industry

How does SNL's PE Ratio compare vs other companies in the European Medical Equipment Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a22.8%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a22.8%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: SNL is expensive based on its Price-To-Earnings Ratio (34.5x) compared to the European Medical Equipment industry average (31.1x).


Price to Earnings Ratio vs Fair Ratio

What is SNL'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.

SNL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio34.5x
Fair PE Ratio41.8x

Price-To-Earnings vs Fair Ratio: SNL is good value based on its Price-To-Earnings Ratio (34.5x) compared to the estimated Fair Price-To-Earnings Ratio (41.8x).


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 SNL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£9.39
UK£12.47
+32.8%
12.4%UK£14.84UK£10.15n/a18
Nov ’25UK£9.72
UK£12.78
+31.4%
12.7%UK£14.94UK£10.06n/a18
Oct ’25UK£11.59
UK£12.92
+11.5%
11.2%UK£14.81UK£10.33n/a18
Sep ’25UK£11.69
UK£13.06
+11.7%
10.5%UK£14.68UK£10.56n/a18
Aug ’25UK£11.98
UK£13.02
+8.7%
10.4%UK£15.03UK£10.85n/a18
Jul ’25UK£9.81
UK£12.94
+32.0%
10.9%UK£15.13UK£10.59n/a17
Jun ’25UK£9.95
UK£12.82
+28.9%
12.5%UK£16.18UK£10.48n/a17
May ’25UK£9.76
UK£13.15
+34.7%
11.6%UK£16.53UK£10.71n/a17
Apr ’25UK£9.94
UK£13.08
+31.6%
11.2%UK£16.36UK£10.76n/a18
Mar ’25UK£10.46
UK£13.18
+26.1%
10.5%UK£16.32UK£10.73n/a18
Feb ’25UK£10.98
UK£12.97
+18.1%
11.1%UK£15.96UK£10.13n/a18
Jan ’25UK£10.77
UK£12.74
+18.3%
12.1%UK£15.94UK£10.12n/a18
Dec ’24UK£10.35
UK£12.84
+24.1%
11.7%UK£16.02UK£10.17n/a18
Nov ’24UK£9.23
UK£13.88
+50.3%
12.2%UK£16.62UK£10.22UK£9.7215
Oct ’24UK£10.26
UK£14.41
+40.5%
9.9%UK£16.69UK£12.00UK£11.5914
Sep ’24UK£10.68
UK£14.07
+31.8%
8.0%UK£16.17UK£11.65UK£11.6915
Aug ’24UK£11.78
UK£14.06
+19.4%
10.6%UK£16.10UK£10.35UK£11.9815
Jul ’24UK£12.67
UK£14.01
+10.6%
10.5%UK£15.90UK£10.41UK£9.8115
Jun ’24UK£12.01
UK£14.26
+18.8%
11.6%UK£16.27UK£9.70UK£9.9515
May ’24UK£13.12
UK£13.56
+3.4%
15.3%UK£16.21UK£8.23UK£9.7616
Apr ’24UK£11.25
UK£12.87
+14.5%
14.8%UK£15.84UK£8.30UK£9.9416
Mar ’24UK£11.96
UK£13.32
+11.4%
13.8%UK£15.86UK£8.55UK£10.4615
Feb ’24UK£11.21
UK£12.90
+15.1%
15.7%UK£15.39UK£8.30UK£10.9814
Jan ’24UK£11.07
UK£12.47
+12.7%
16.4%UK£15.43UK£8.32UK£10.7714
Dec ’23UK£10.75
UK£12.65
+17.6%
16.0%UK£15.96UK£8.60UK£10.3513
Nov ’23UK£10.22
UK£13.36
+30.8%
14.5%UK£16.60UK£8.95UK£9.2313

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


Discover undervalued companies