Ibstock Valuation

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

Below Fair Value: IBSTL (£1.89) is trading below our estimate of fair value (£4.57)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for IBSTL. This is calculated by dividing IBSTL's market cap by their current earnings.
What is IBSTL's PE Ratio?
PE Ratio100.8x
EarningsUK£7.25m
Market CapUK£731.00m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for IBSTL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28x
MSLH Marshalls
38.2x28.1%UK£825.0m
FORT Forterra
47.7x32.4%UK£381.9m
BREE Breedon Group
16.6x14.1%UK£1.6b
RHIM RHI Magnesita
9.5x12.0%UK£1.5b
IBSTL Ibstock
102.2x36.5%UK£741.2m

Price-To-Earnings vs Peers: IBSTL is expensive based on its Price-To-Earnings Ratio (102.2x) compared to the peer average (28x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies11PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IBSTL is expensive based on its Price-To-Earnings Ratio (102.2x) compared to the European Basic Materials industry average (12.7x).


Price to Earnings Ratio vs Fair Ratio

What is IBSTL'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.

IBSTL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio100.8x
Fair PE Ratio21.5x

Price-To-Earnings vs Fair Ratio: IBSTL is expensive based on its Price-To-Earnings Ratio (102.2x) compared to the estimated Fair Price-To-Earnings Ratio (21.6x).


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 IBSTL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.89
UK£2.09
+10.6%
9.0%UK£2.51UK£1.90n/a9
Nov ’25UK£2.01
UK£2.03
+1.4%
10.3%UK£2.51UK£1.73n/a9
Oct ’25UK£1.81
UK£1.98
+9.0%
6.2%UK£2.15UK£1.73n/a9
Sep ’25UK£1.83
UK£1.93
+5.5%
9.5%UK£2.15UK£1.55n/a9
Aug ’25UK£1.83
UK£1.80
-1.7%
12.8%UK£2.15UK£1.50n/a9
Jul ’25UK£1.56
UK£1.64
+5.4%
10.6%UK£2.00UK£1.50n/a8
Jun ’25UK£1.60
UK£1.62
+1.2%
12.0%UK£2.00UK£1.40n/a8
May ’25UK£1.47
UK£1.62
+10.2%
12.3%UK£2.00UK£1.40n/a8
Apr ’25UK£1.51
UK£1.62
+7.2%
12.3%UK£2.00UK£1.40n/a8
Mar ’25UK£1.63
UK£1.57
-4.2%
12.4%UK£2.00UK£1.35n/a8
Feb ’25UK£1.51
UK£1.57
+3.5%
12.4%UK£2.00UK£1.35n/a8
Jan ’25UK£1.52
UK£1.57
+3.5%
14.6%UK£2.00UK£1.30n/a8
Dec ’24UK£1.32
UK£1.53
+15.9%
16.8%UK£2.00UK£1.27n/a8
Nov ’24UK£1.23
UK£1.57
+27.4%
20.5%UK£2.25UK£1.27UK£2.018
Oct ’24UK£1.43
UK£1.83
+28.1%
14.7%UK£2.30UK£1.50UK£1.819
Sep ’24UK£1.48
UK£1.85
+25.1%
15.1%UK£2.30UK£1.50UK£1.839
Aug ’24UK£1.51
UK£1.82
+20.5%
16.9%UK£2.35UK£1.45UK£1.8310
Jul ’24UK£1.40
UK£1.87
+33.6%
17.2%UK£2.35UK£1.50UK£1.5610
Jun ’24UK£1.62
UK£1.90
+17.4%
15.4%UK£2.35UK£1.55UK£1.6010
May ’24UK£1.70
UK£1.90
+11.6%
15.7%UK£2.35UK£1.50UK£1.4710
Apr ’24UK£1.74
UK£1.89
+8.6%
16.8%UK£2.35UK£1.50UK£1.519
Mar ’24UK£1.67
UK£1.77
+6.4%
14.5%UK£2.30UK£1.40UK£1.639
Feb ’24UK£1.70
UK£1.77
+4.2%
14.5%UK£2.30UK£1.40UK£1.519
Jan ’24UK£1.54
UK£1.83
+18.9%
15.1%UK£2.30UK£1.40UK£1.528
Dec ’23UK£1.61
UK£1.90
+17.8%
12.3%UK£2.30UK£1.58UK£1.327
Nov ’23UK£1.55
UK£1.94
+24.7%
12.4%UK£2.30UK£1.58UK£1.238

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


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