Forterra plc

BATS-CHIXE:FORTL Stock Report

Market Cap: UK£376.1m

Forterra Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: FORTL (£1.82) is trading below our estimate of fair value (£4.17)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for FORTL. This is calculated by dividing FORTL's market cap by their current earnings.
What is FORTL's PE Ratio?
PE Ratio47x
EarningsUK£8.00m
Market CapUK£376.14m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for FORTL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average41.2x
IBST Ibstock
101.9x36.5%UK£738.9m
MSLH Marshalls
37.9x28.2%UK£818.7m
BRCK Brickability Group
12.8x24.6%UK£197.3m
MBH Michelmersh Brick Holdings
12.1x8.1%UK£97.7m
FORTL Forterra
47x32.4%UK£376.1m

Price-To-Earnings vs Peers: FORTL is expensive based on its Price-To-Earnings Ratio (47x) compared to the peer average (41.2x).

Price to Earnings Ratio vs Industry

How does FORTL'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: FORTL is expensive based on its Price-To-Earnings Ratio (47x) compared to the European Basic Materials industry average (13.2x).

Price to Earnings Ratio vs Fair Ratio

What is FORTL'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.

FORTL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio47x
Fair PE Ratio18.7x

Price-To-Earnings vs Fair Ratio: FORTL is expensive based on its Price-To-Earnings Ratio (47x) compared to the estimated Fair Price-To-Earnings Ratio (18.7x).

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 FORTL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.82
UK£2.04
+12.0%
13.8%UK£2.60UK£1.70n/a9
Nov ’25UK£1.92
UK£1.97
+2.8%
10.2%UK£2.35UK£1.70n/a9
Oct ’25UK£1.73
UK£1.93
+11.4%
7.8%UK£2.15UK£1.70n/a9
Sep ’25UK£1.78
UK£1.87
+5.2%
7.3%UK£2.10UK£1.70n/a9
Aug ’25UK£1.78
UK£1.87
+5.0%
7.3%UK£2.10UK£1.70n/a9
Jul ’25UK£1.63
UK£1.79
+10.1%
5.9%UK£2.00UK£1.63n/a8
Jun ’25UK£1.68
UK£1.80
+7.2%
5.8%UK£2.00UK£1.63n/a8
May ’25UK£1.64
UK£1.80
+9.6%
5.8%UK£2.00UK£1.63n/a8
Apr ’25UK£1.73
UK£1.74
+0.5%
10.3%UK£2.00UK£1.40n/a8
Mar ’25UK£1.74
UK£1.73
-0.6%
10.4%UK£2.00UK£1.40n/a8
Feb ’25UK£1.64
UK£1.68
+2.1%
12.3%UK£2.00UK£1.40n/a8
Jan ’25UK£1.77
UK£1.65
-6.4%
11.2%UK£2.00UK£1.40n/a8
Dec ’24UK£1.54
UK£1.60
+4.1%
12.9%UK£2.00UK£1.35n/a8
Nov ’24UK£1.34
UK£1.66
+23.5%
14.8%UK£2.00UK£1.35UK£1.928
Oct ’24UK£1.49
UK£2.00
+34.3%
12.1%UK£2.50UK£1.64UK£1.739
Sep ’24UK£1.68
UK£2.00
+19.5%
12.1%UK£2.50UK£1.64UK£1.789
Aug ’24UK£1.73
UK£2.02
+16.7%
11.8%UK£2.50UK£1.64UK£1.7810
Jul ’24UK£1.64
UK£2.44
+49.4%
15.0%UK£3.00UK£1.80UK£1.639
Jun ’24UK£1.87
UK£2.53
+35.3%
10.0%UK£3.00UK£2.20UK£1.689
May ’24UK£1.93
UK£2.49
+29.1%
11.0%UK£3.00UK£2.10UK£1.6410
Apr ’24UK£1.98
UK£2.49
+25.7%
11.0%UK£3.00UK£2.10UK£1.7310
Mar ’24UK£2.14
UK£2.44
+14.1%
9.5%UK£2.86UK£2.10UK£1.7410
Feb ’24UK£2.18
UK£2.44
+12.0%
9.5%UK£2.86UK£2.10UK£1.6410
Jan ’24UK£1.87
UK£2.55
+36.2%
12.5%UK£3.00UK£2.10UK£1.778
Dec ’23UK£2.04
UK£2.66
+30.7%
8.6%UK£3.00UK£2.37UK£1.547
Nov ’23UK£2.18
UK£2.95
+35.7%
14.6%UK£3.65UK£2.37UK£1.348

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

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