Forterra plc

LSE:FORT Stock Report

Market Cap: UK£368.3m

Forterra Valuation

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

Below Fair Value: FORT (£1.78) is trading below our estimate of fair value (£4.14)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for FORT. This is calculated by dividing FORT's market cap by their current earnings.
What is FORT's PE Ratio?
PE Ratio46x
EarningsUK£8.00m
Market CapUK£368.28m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for FORT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average40.1x
IBST Ibstock
98.8x36.5%UK£714.5m
MSLH Marshalls
36.8x28.1%UK£801.1m
BRCK Brickability Group
12.8x24.6%UK£197.3m
MBH Michelmersh Brick Holdings
11.9x8.1%UK£97.2m
FORT Forterra
46x32.4%UK£368.3m

Price-To-Earnings vs Peers: FORT is expensive based on its Price-To-Earnings Ratio (46x) compared to the peer average (40.1x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FORT 46.0xIndustry Avg. 12.8xNo. of Companies10PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FORT is expensive based on its Price-To-Earnings Ratio (46x) compared to the European Basic Materials industry average (12.8x).

Price to Earnings Ratio vs Fair Ratio

What is FORT'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.

FORT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio46x
Fair PE Ratio18.6x

Price-To-Earnings vs Fair Ratio: FORT is expensive based on its Price-To-Earnings Ratio (46x) compared to the estimated Fair Price-To-Earnings Ratio (18.6x).

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 FORT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.78
UK£2.04
+14.5%
13.8%UK£2.60UK£1.70n/a9
Nov ’25UK£1.89
UK£1.97
+4.1%
10.2%UK£2.35UK£1.70n/a9
Oct ’25UK£1.72
UK£1.93
+12.3%
7.8%UK£2.15UK£1.70n/a9
Sep ’25UK£1.76
UK£1.87
+6.1%
7.3%UK£2.10UK£1.70n/a9
Aug ’25UK£1.77
UK£1.87
+5.8%
7.3%UK£2.10UK£1.70n/a9
Jul ’25UK£1.62
UK£1.79
+10.6%
5.9%UK£2.00UK£1.63n/a8
Jun ’25UK£1.67
UK£1.80
+7.6%
5.8%UK£2.00UK£1.63n/a8
May ’25UK£1.63
UK£1.80
+10.3%
5.8%UK£2.00UK£1.63n/a8
Apr ’25UK£1.72
UK£1.74
+0.8%
10.3%UK£2.00UK£1.40n/a8
Mar ’25UK£1.75
UK£1.73
-1.0%
10.4%UK£2.00UK£1.40n/a8
Feb ’25UK£1.65
UK£1.68
+1.9%
12.3%UK£2.00UK£1.40n/a8
Jan ’25UK£1.77
UK£1.65
-6.5%
11.2%UK£2.00UK£1.40n/a8
Dec ’24UK£1.56
UK£1.60
+3.0%
12.9%UK£2.00UK£1.35n/a8
Nov ’24UK£1.34
UK£1.66
+23.3%
14.8%UK£2.00UK£1.35UK£1.898
Oct ’24UK£1.49
UK£2.00
+34.7%
12.1%UK£2.50UK£1.64UK£1.729
Sep ’24UK£1.67
UK£2.00
+19.9%
12.1%UK£2.50UK£1.64UK£1.769
Aug ’24UK£1.73
UK£2.02
+16.9%
11.8%UK£2.50UK£1.64UK£1.7710
Jul ’24UK£1.62
UK£2.44
+51.3%
15.0%UK£3.00UK£1.80UK£1.629
Jun ’24UK£1.87
UK£2.53
+35.7%
10.0%UK£3.00UK£2.20UK£1.679
May ’24UK£1.93
UK£2.49
+28.7%
11.0%UK£3.00UK£2.10UK£1.6310
Apr ’24UK£1.99
UK£2.49
+25.3%
11.0%UK£3.00UK£2.10UK£1.7210
Mar ’24UK£2.15
UK£2.44
+13.5%
9.5%UK£2.86UK£2.10UK£1.7510
Feb ’24UK£2.20
UK£2.44
+11.2%
9.5%UK£2.86UK£2.10UK£1.6510
Jan ’24UK£1.87
UK£2.55
+36.5%
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£1.567
Nov ’23UK£2.17
UK£2.95
+36.1%
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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