Johnson Matthey Plc

LSE:JMAT Stock Report

Market Cap: UK£2.3b

Johnson Matthey Valuation

Is JMAT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 (£13.35) is trading below our estimate of fair value (£31.9)

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

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 Ratio4.2x
EarningsUK£529.00m
Market CapUK£2.26b

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 Average29x
CRDA Croda International
28.6x15.2%UK£4.7b
VCT Victrex
54.5x29.3%UK£949.6m
TET Treatt
20.5x10.3%UK£296.8m
IOF Iofina
12.4xn/aUK£35.5m
JMAT Johnson Matthey
4.2x-24.7%UK£2.3b

Price-To-Earnings vs Peers: JMAT is good value based on its Price-To-Earnings Ratio (4.2x) compared to the peer average (29x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
JMAT 4.2xIndustry Avg. 17.0xNo. of Companies12PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: JMAT is good value based on its Price-To-Earnings Ratio (4.2x) compared to the European Chemicals industry average (17x).

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 Ratio4.2x
Fair PE Ratio8x

Price-To-Earnings vs Fair Ratio: JMAT is good value based on its Price-To-Earnings Ratio (4.2x) compared to the estimated Fair Price-To-Earnings Ratio (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 JMAT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£13.35
UK£17.62
+32.0%
17.9%UK£24.00UK£14.60n/a11
Dec ’25UK£13.59
UK£17.71
+30.3%
16.8%UK£23.50UK£14.60n/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£14.00UK£13.5916
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

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/19 19:20
End of Day Share Price 2024/12/19 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Johnson Matthey Plc is covered by 38 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Martin SchneeAlphaValue
Rupesh MadlaniBarclays
James StewartBarclays