Johnson Matthey Plc

LSE:JMAT Stock Report

Market Cap: UK£2.6b

Johnson Matthey Valuation

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

Below Fair Value: JMAT (£15.1) is trading below our estimate of fair value (£16.58)

Significantly Below Fair Value: JMAT 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 JMAT?

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

The above table shows the Price to Earnings ratio for JMAT. This is calculated by dividing JMAT's market cap by their current earnings.
What is JMAT's PE Ratio?
PE Ratio24x
EarningsUK£108.00m
Market CapUK£2.59b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for JMAT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.4x
CRDA Croda International
29.7x15.1%UK£4.8b
VCT Victrex
24.4x37.8%UK£749.6m
TET Treatt
22.7x15.3%UK£256.6m
IOF Iofina
12.8xn/aUK£36.7m
JMAT Johnson Matthey
24x28.4%UK£2.6b

Price-To-Earnings vs Peers: JMAT is expensive based on its Price-To-Earnings Ratio (24x) compared to the peer average (22.4x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
JMAT 24.0xIndustry Avg. 17.1xNo. of Companies11PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: JMAT is expensive based on its Price-To-Earnings Ratio (24x) compared to the European Chemicals industry average (17.9x).

Price to Earnings Ratio vs Fair Ratio

What is JMAT'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.

JMAT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24x
Fair PE Ratio21.2x

Price-To-Earnings vs Fair Ratio: JMAT is expensive based on its Price-To-Earnings Ratio (24x) compared to the estimated Fair Price-To-Earnings Ratio (21.2x).

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 JMAT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£15.10
UK£18.86
+24.9%
14.7%UK£23.50UK£16.00n/a11
Nov ’25UK£15.17
UK£18.86
+24.3%
14.7%UK£23.50UK£16.00n/a11
Oct ’25UK£15.42
UK£19.56
+26.8%
13.3%UK£23.00UK£16.00n/a12
Sep ’25UK£16.35
UK£19.96
+22.1%
12.9%UK£24.00UK£16.00n/a12
Aug ’25UK£16.03
UK£19.96
+24.5%
12.9%UK£24.00UK£16.00n/a12
Jul ’25UK£15.75
UK£19.88
+26.2%
14.1%UK£24.00UK£14.60n/a12
Jun ’25UK£17.58
UK£19.92
+13.3%
13.6%UK£24.00UK£14.60n/a12
May ’25UK£17.57
UK£19.75
+12.4%
12.7%UK£23.00UK£14.60n/a12
Apr ’25UK£17.89
UK£18.89
+5.6%
15.8%UK£23.00UK£14.00n/a13
Mar ’25UK£15.80
UK£18.19
+15.2%
14.4%UK£23.00UK£14.00n/a15
Feb ’25UK£16.22
UK£18.43
+13.7%
14.6%UK£23.00UK£14.00n/a16
Jan ’25UK£16.98
UK£18.48
+8.8%
14.8%UK£23.00UK£14.00n/a16
Dec ’24UK£15.72
UK£18.48
+17.5%
14.8%UK£23.00UK£14.00n/a16
Nov ’24UK£14.92
UK£19.43
+30.3%
16.8%UK£28.75UK£14.00UK£15.1716
Oct ’24UK£16.28
UK£20.47
+25.8%
16.1%UK£28.75UK£14.00UK£15.4218
Sep ’24UK£17.91
UK£20.66
+15.4%
15.8%UK£28.75UK£14.00UK£16.3518
Aug ’24UK£17.92
UK£21.09
+17.7%
14.4%UK£29.50UK£16.00UK£16.0317
Jul ’24UK£17.46
UK£21.00
+20.3%
13.6%UK£29.50UK£16.00UK£15.7517
Jun ’24UK£17.62
UK£21.48
+21.9%
13.3%UK£30.16UK£16.00UK£17.5817
May ’24UK£19.64
UK£21.72
+10.6%
13.1%UK£30.16UK£16.00UK£17.5717
Apr ’24UK£19.84
UK£22.30
+12.4%
12.3%UK£30.16UK£16.00UK£17.8917
Mar ’24UK£21.85
UK£22.35
+2.3%
13.8%UK£32.25UK£16.00UK£15.8018
Feb ’24UK£22.97
UK£22.35
-2.7%
13.8%UK£32.25UK£16.00UK£16.2218
Jan ’24UK£21.27
UK£22.21
+4.4%
14.1%UK£32.25UK£16.00UK£16.9818
Dec ’23UK£20.87
UK£22.04
+5.6%
14.9%UK£32.25UK£16.00UK£15.7218
Nov ’23UK£19.60
UK£22.03
+12.4%
15.9%UK£33.62UK£16.00UK£14.9218

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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