Breedon Group plc

LSE:BREE Stock Report

Market Cap: UK£1.5b

Breedon Group Valuation

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

Below Fair Value: BREE (£4.34) is trading below our estimate of fair value (£8.22)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BREE. This is calculated by dividing BREE's market cap by their current earnings.
What is BREE's PE Ratio?
PE Ratio15.6x
EarningsUK£95.70m
Market CapUK£1.49b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BREE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average49.1x
RHIM RHI Magnesita
9.4x12.0%UK£1.5b
MSLH Marshalls
37.9x28.2%UK£818.7m
IBST Ibstock
101.9x36.5%UK£738.9m
FORT Forterra
47x32.4%UK£376.1m
BREE Breedon Group
15.6x14.1%UK£1.5b

Price-To-Earnings vs Peers: BREE is good value based on its Price-To-Earnings Ratio (15.6x) compared to the peer average (49.1x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
BREE 15.6xIndustry Avg. 12.5xNo. of Companies9PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BREE is expensive based on its Price-To-Earnings Ratio (15.6x) compared to the European Basic Materials industry average (13.2x).

Price to Earnings Ratio vs Fair Ratio

What is BREE'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.

BREE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.6x
Fair PE Ratio15x

Price-To-Earnings vs Fair Ratio: BREE is expensive based on its Price-To-Earnings Ratio (15.6x) compared to the estimated Fair Price-To-Earnings Ratio (15x).

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 BREE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£4.34
UK£5.02
+15.6%
9.1%UK£6.00UK£4.50n/a14
Nov ’25UK£4.45
UK£5.02
+12.7%
9.1%UK£6.00UK£4.50n/a14
Oct ’25UK£4.22
UK£5.04
+19.5%
9.2%UK£6.00UK£4.60n/a13
Sep ’25UK£4.20
UK£5.04
+19.9%
9.2%UK£6.00UK£4.60n/a13
Aug ’25UK£4.25
UK£5.05
+18.9%
9.2%UK£6.00UK£4.60n/a13
Jul ’25UK£3.85
UK£5.02
+30.5%
10.2%UK£6.00UK£4.20n/a13
Jun ’25UK£3.86
UK£5.01
+29.9%
10.2%UK£6.00UK£4.20n/a13
May ’25UK£3.64
UK£5.01
+37.9%
10.5%UK£6.00UK£4.20n/a12
Apr ’25UK£3.85
UK£4.96
+29.1%
11.5%UK£6.00UK£4.20n/a12
Mar ’25UK£3.74
UK£4.80
+28.4%
13.5%UK£6.00UK£4.20n/a10
Feb ’25UK£3.67
UK£4.61
+25.8%
14.2%UK£6.00UK£3.80n/a9
Jan ’25UK£3.62
UK£4.59
+26.8%
14.7%UK£6.00UK£3.80n/a9
Dec ’24UK£3.48
UK£4.54
+30.6%
15.4%UK£6.00UK£3.80n/a9
Nov ’24UK£3.17
UK£4.53
+43.0%
15.5%UK£6.00UK£3.80UK£4.459
Oct ’24UK£3.29
UK£4.51
+37.1%
14.8%UK£6.00UK£3.80UK£4.2210
Sep ’24UK£3.48
UK£4.55
+30.9%
14.3%UK£6.00UK£3.80UK£4.2011
Aug ’24UK£3.61
UK£4.55
+26.2%
14.3%UK£6.00UK£3.80UK£4.2511
Jul ’24UK£3.26
UK£4.52
+38.5%
15.2%UK£6.00UK£3.75UK£3.8511
Jun ’24UK£3.54
UK£4.52
+27.7%
15.2%UK£6.00UK£3.75UK£3.8611
May ’24UK£3.44
UK£4.51
+31.3%
15.1%UK£6.00UK£3.75UK£3.6411
Apr ’24UK£3.83
UK£4.41
+15.2%
13.4%UK£5.50UK£3.25UK£3.859
Mar ’24UK£3.55
UK£4.28
+20.7%
13.5%UK£5.20UK£3.25UK£3.749
Feb ’24UK£3.43
UK£4.19
+22.3%
13.2%UK£5.20UK£3.25UK£3.678
Jan ’24UK£3.05
UK£4.26
+39.5%
14.8%UK£5.20UK£3.25UK£3.628
Dec ’23UK£3.00
UK£4.26
+42.1%
14.7%UK£5.20UK£3.25UK£3.488
Nov ’23UK£2.63
UK£4.26
+62.4%
14.7%UK£5.20UK£3.25UK£3.178

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

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