Johnson Matthey Plc

BATS-CHIXE:JMATL Stock Report

Market Cap: UK£2.6b

Johnson Matthey Valuation

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

Below Fair Value: JMATL (£15.01) is trading below our estimate of fair value (£16.55)

Significantly Below Fair Value: JMATL is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for JMATL. This is calculated by dividing JMATL's market cap by their current earnings.
What is JMATL's PE Ratio?
PE Ratio23.8x
EarningsUK£108.00m
Market CapUK£2.57b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for JMATL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.6x
CRDA Croda International
30.4x15.1%UK£4.9b
VCT Victrex
24.9x37.8%UK£763.5m
TET Treatt
22.6x15.3%UK£255.9m
IOF Iofina
12.6xn/aUK£36.5m
JMATL Johnson Matthey
23.8x28.4%UK£2.6b

Price-To-Earnings vs Peers: JMATL is expensive based on its Price-To-Earnings Ratio (23.8x) compared to the peer average (22.6x).

Price to Earnings Ratio vs Industry

How does JMATL's PE Ratio compare vs other companies in the European Chemicals Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies11PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: JMATL is expensive based on its Price-To-Earnings Ratio (23.8x) compared to the European Chemicals industry average (16.8x).

Price to Earnings Ratio vs Fair Ratio

What is JMATL'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.

JMATL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.8x
Fair PE Ratio21.1x

Price-To-Earnings vs Fair Ratio: JMATL is expensive based on its Price-To-Earnings Ratio (23.8x) compared to the estimated Fair Price-To-Earnings Ratio (21.1x).

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 JMATL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£15.01
UK£18.86
+25.7%
14.7%UK£23.50UK£16.00n/a11
Nov ’25UK£15.10
UK£18.86
+24.9%
14.7%UK£23.50UK£16.00n/a11
Oct ’25UK£15.48
UK£19.56
+26.3%
13.3%UK£23.00UK£16.00n/a12
Sep ’25UK£16.30
UK£19.96
+22.4%
12.9%UK£24.00UK£16.00n/a12
Aug ’25UK£16.05
UK£19.96
+24.4%
12.9%UK£24.00UK£16.00n/a12
Jul ’25UK£15.77
UK£19.88
+26.1%
14.1%UK£24.00UK£14.60n/a12
Jun ’25UK£17.53
UK£19.92
+13.6%
13.6%UK£24.00UK£14.60n/a12
May ’25UK£17.66
UK£19.75
+11.8%
12.7%UK£23.00UK£14.60n/a12
Apr ’25UK£17.80
UK£18.89
+6.1%
15.8%UK£23.00UK£14.00n/a13
Mar ’25UK£15.74
UK£18.19
+15.6%
14.4%UK£23.00UK£14.00n/a15
Feb ’25UK£16.17
UK£18.43
+14.0%
14.6%UK£23.00UK£14.00n/a16
Jan ’25UK£17.03
UK£18.48
+8.5%
14.8%UK£23.00UK£14.00n/a16
Dec ’24UK£15.74
UK£18.48
+17.4%
14.8%UK£23.00UK£14.00n/a16
Nov ’24UK£14.99
UK£19.43
+29.7%
16.8%UK£28.75UK£14.00UK£15.1016
Oct ’24UK£16.32
UK£20.47
+25.5%
16.1%UK£28.75UK£14.00UK£15.4818
Sep ’24UK£18.00
UK£20.66
+14.8%
15.8%UK£28.75UK£14.00UK£16.3018
Aug ’24UK£17.91
UK£21.09
+17.8%
14.4%UK£29.50UK£16.00UK£16.0517
Jul ’24UK£17.50
UK£21.00
+20.0%
13.6%UK£29.50UK£16.00UK£15.7717
Jun ’24UK£17.60
UK£21.48
+22.1%
13.3%UK£30.16UK£16.00UK£17.5317
May ’24UK£19.63
UK£21.72
+10.7%
13.1%UK£30.16UK£16.00UK£17.6617
Apr ’24UK£19.86
UK£22.30
+12.3%
12.3%UK£30.16UK£16.00UK£17.8017
Mar ’24UK£21.86
UK£22.35
+2.2%
13.8%UK£32.25UK£16.00UK£15.7418
Feb ’24UK£22.86
UK£22.35
-2.2%
13.8%UK£32.25UK£16.00UK£16.1718
Jan ’24UK£21.20
UK£22.21
+4.8%
14.1%UK£32.25UK£16.00UK£17.0318
Dec ’23UK£20.82
UK£22.04
+5.9%
14.9%UK£32.25UK£16.00UK£15.7418
Nov ’23UK£19.50
UK£22.03
+13.0%
15.9%UK£33.62UK£16.00UK£14.9918

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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