Breedon Group plc

BATS-CHIXE:BREEL Stock Report

Market Cap: UK£1.6b

Breedon Group Valuation

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

Below Fair Value: BREEL (£4.68) is trading below our estimate of fair value (£8.11)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BREEL. This is calculated by dividing BREEL's market cap by their current earnings.
What is BREEL's PE Ratio?
PE Ratio16.8x
EarningsUK£95.70m
Market CapUK£1.60b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BREEL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average48.7x
RHIM RHI Magnesita
9.6x12.0%UK£1.5b
MSLH Marshalls
38x28.1%UK£820.0m
IBST Ibstock
100.8x36.5%UK£731.0m
FORT Forterra
46.6x32.4%UK£372.4m
BREEL Breedon Group
16.8x14.1%UK£1.6b

Price-To-Earnings vs Peers: BREEL is good value based on its Price-To-Earnings Ratio (16.8x) compared to the peer average (48.7x).

Price to Earnings Ratio vs Industry

How does BREEL's PE Ratio compare vs other companies in the European Basic Materials Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies9PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BREEL is expensive based on its Price-To-Earnings Ratio (16.8x) compared to the European Basic Materials industry average (12.7x).

Price to Earnings Ratio vs Fair Ratio

What is BREEL'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.

BREEL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.8x
Fair PE Ratio15.1x

Price-To-Earnings vs Fair Ratio: BREEL is expensive based on its Price-To-Earnings Ratio (16.8x) compared to the estimated Fair Price-To-Earnings Ratio (15.1x).

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 BREEL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£4.68
UK£5.07
+8.5%
9.0%UK£6.00UK£4.50n/a14
Nov ’25UK£4.46
UK£5.02
+12.5%
9.1%UK£6.00UK£4.50n/a14
Oct ’25UK£4.21
UK£5.04
+19.7%
9.2%UK£6.00UK£4.60n/a13
Sep ’25UK£4.18
UK£5.04
+20.7%
9.2%UK£6.00UK£4.60n/a13
Aug ’25UK£4.24
UK£5.05
+18.9%
9.2%UK£6.00UK£4.60n/a13
Jul ’25UK£3.86
UK£5.02
+30.0%
10.2%UK£6.00UK£4.20n/a13
Jun ’25UK£3.88
UK£5.01
+29.3%
10.2%UK£6.00UK£4.20n/a13
May ’25UK£3.64
UK£5.01
+37.7%
10.5%UK£6.00UK£4.20n/a12
Apr ’25UK£3.86
UK£4.96
+28.7%
11.5%UK£6.00UK£4.20n/a12
Mar ’25UK£3.70
UK£4.80
+29.6%
13.5%UK£6.00UK£4.20n/a10
Feb ’25UK£3.65
UK£4.61
+26.2%
14.2%UK£6.00UK£3.80n/a9
Jan ’25UK£3.62
UK£4.59
+26.7%
14.7%UK£6.00UK£3.80n/a9
Dec ’24UK£3.47
UK£4.54
+31.0%
15.4%UK£6.00UK£3.80n/a9
Nov ’24UK£3.18
UK£4.53
+42.6%
15.5%UK£6.00UK£3.80UK£4.469
Oct ’24n/a
UK£4.51
0%
14.8%UK£6.00UK£3.80UK£4.2110
Sep ’24n/a
UK£4.55
0%
14.3%UK£6.00UK£3.80UK£4.1811
Aug ’24n/a
UK£4.55
0%
14.3%UK£6.00UK£3.80UK£4.2411
Jul ’24n/a
UK£4.52
0%
15.2%UK£6.00UK£3.75UK£3.8611
Jun ’24n/a
UK£4.52
0%
15.2%UK£6.00UK£3.75UK£3.8811
May ’24n/a
UK£4.51
0%
15.1%UK£6.00UK£3.75UK£3.6411
Apr ’24n/a
UK£4.41
0%
13.4%UK£5.50UK£3.25UK£3.869
Mar ’24n/a
UK£4.28
0%
13.5%UK£5.20UK£3.25UK£3.709
Feb ’24n/a
UK£4.19
0%
13.2%UK£5.20UK£3.25UK£3.658
Jan ’24n/a
UK£4.26
0%
14.8%UK£5.20UK£3.25UK£3.628
Dec ’23n/a
UK£4.26
0%
14.7%UK£5.20UK£3.25UK£3.478
Nov ’23n/a
UK£4.26
0%
14.7%UK£5.20UK£3.25UK£3.188

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

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