Ibstock plc

LSE:IBST Stock Report

Market Cap: UK£731.0m

Ibstock Valuation

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

Below Fair Value: IBST (£1.86) is trading below our estimate of fair value (£4.54)

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

Key Valuation Metric

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

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

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

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for IBST vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.7x
MSLH Marshalls
38x28.1%UK£820.0m
FORT Forterra
46.6x32.4%UK£372.4m
BREE Breedon Group
16.8x14.1%UK£1.6b
RHIM RHI Magnesita
9.6x12.0%UK£1.5b
IBST Ibstock
100.8x36.5%UK£731.0m

Price-To-Earnings vs Peers: IBST is expensive based on its Price-To-Earnings Ratio (100.8x) compared to the peer average (27.7x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
IBST 100.8xIndustry Avg. 12.7xNo. of Companies9PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IBST is expensive based on its Price-To-Earnings Ratio (100.8x) compared to the European Basic Materials industry average (12.7x).

Price to Earnings Ratio vs Fair Ratio

What is IBST'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.

IBST PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio100.8x
Fair PE Ratio21.8x

Price-To-Earnings vs Fair Ratio: IBST is expensive based on its Price-To-Earnings Ratio (100.8x) compared to the estimated Fair Price-To-Earnings Ratio (21.8x).

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 IBST forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.86
UK£2.09
+12.6%
9.0%UK£2.51UK£1.90n/a9
Nov ’25UK£2.00
UK£2.03
+1.6%
10.3%UK£2.51UK£1.73n/a9
Oct ’25UK£1.82
UK£1.98
+8.5%
6.2%UK£2.15UK£1.73n/a9
Sep ’25UK£1.84
UK£1.93
+4.9%
9.5%UK£2.15UK£1.55n/a9
Aug ’25UK£1.85
UK£1.80
-2.7%
12.8%UK£2.15UK£1.50n/a9
Jul ’25UK£1.55
UK£1.64
+6.3%
10.6%UK£2.00UK£1.50n/a8
Jun ’25UK£1.60
UK£1.62
+1.4%
12.0%UK£2.00UK£1.40n/a8
May ’25UK£1.47
UK£1.62
+9.7%
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£1.64
UK£1.57
-4.6%
12.4%UK£2.00UK£1.35n/a8
Feb ’25UK£1.52
UK£1.57
+3.3%
12.4%UK£2.00UK£1.35n/a8
Jan ’25UK£1.52
UK£1.57
+3.8%
14.6%UK£2.00UK£1.30n/a8
Dec ’24UK£1.33
UK£1.53
+15.8%
16.8%UK£2.00UK£1.27n/a8
Nov ’24UK£1.22
UK£1.57
+28.0%
20.5%UK£2.25UK£1.27UK£2.008
Oct ’24UK£1.43
UK£1.83
+28.4%
14.7%UK£2.30UK£1.50UK£1.829
Sep ’24UK£1.48
UK£1.85
+25.1%
15.1%UK£2.30UK£1.50UK£1.849
Aug ’24UK£1.52
UK£1.82
+19.9%
16.9%UK£2.35UK£1.45UK£1.8510
Jul ’24UK£1.40
UK£1.87
+33.8%
17.2%UK£2.35UK£1.50UK£1.5510
Jun ’24UK£1.62
UK£1.90
+17.3%
15.4%UK£2.35UK£1.55UK£1.6010
May ’24UK£1.70
UK£1.90
+11.8%
15.7%UK£2.35UK£1.50UK£1.4710
Apr ’24UK£1.73
UK£1.89
+9.3%
16.8%UK£2.35UK£1.50UK£1.519
Mar ’24UK£1.67
UK£1.77
+6.2%
14.5%UK£2.30UK£1.40UK£1.649
Feb ’24UK£1.71
UK£1.77
+3.8%
14.5%UK£2.30UK£1.40UK£1.529
Jan ’24UK£1.55
UK£1.83
+18.4%
15.1%UK£2.30UK£1.40UK£1.528
Dec ’23UK£1.61
UK£1.90
+18.0%
12.3%UK£2.30UK£1.58UK£1.337
Nov ’23UK£1.55
UK£1.94
+24.6%
12.4%UK£2.30UK£1.58UK£1.228

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

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