Grainger plc

LSE:GRI Stock Report

Market Cap: UK£1.7b

Grainger Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of GRI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GRI (£2.22) is trading above our estimate of fair value (£0.71)

Significantly Below Fair Value: GRI is trading above our estimate of fair value.

Key Valuation Metric

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

Key metric: As GRI is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for GRI. This is calculated by dividing GRI's market cap by their current revenue.
What is GRI's PS Ratio?
PS Ratio6.1x
SalesUK£270.30m
Market CapUK£1.68b

Price to Sales Ratio vs Peers

How does GRI's PS Ratio compare to its peers?

The above table shows the PS ratio for GRI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average5x
IWG International Workplace Group
0.6x6.1%UK£1.7b
SRE Sirius Real Estate
5.5x-3.2%UK£1.3b
TPFG Property Franchise Group
6.8x42.4%UK£279.8m
ASLI abrdn European Logistics Income
7.2xn/aUK£236.6m
GRI Grainger
6.1x-18.3%UK£1.7b

Price-To-Sales vs Peers: GRI is expensive based on its Price-To-Sales Ratio (6.1x) compared to the peer average (5x).

Price to Sales Ratio vs Industry

How does GRI's PS Ratio compare vs other companies in the GB Real Estate Industry?

10 CompaniesPrice / SalesEstimated GrowthMarket Cap
IWG International Workplace Group
0.6x6.1%US$2.18b
ETLN Etalon Group
0.3x10.5%US$210.89m
WJG Watkin Jones
0.1x1.6%US$76.41m
RAV Raven Property Group
0.1x-0.2%US$23.74m
GRI 6.1xIndustry Avg. 4.2xNo. of Companies10PS02.44.87.29.612+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: GRI is expensive based on its Price-To-Sales Ratio (6.1x) compared to the UK Real Estate industry average (4.2x).

Price to Sales Ratio vs Fair Ratio

What is GRI's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GRI PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio6.1x
Fair PS Ratio3.8x

Price-To-Sales vs Fair Ratio: GRI is expensive based on its Price-To-Sales Ratio (6.1x) compared to the estimated Fair Price-To-Sales Ratio (3.8x).

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 GRI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£2.27
UK£2.98
+31.1%
6.4%UK£3.36UK£2.70n/a9
Nov ’25UK£2.30
UK£3.00
+30.8%
6.4%UK£3.36UK£2.70n/a9
Oct ’25UK£2.49
UK£3.00
+20.8%
6.4%UK£3.36UK£2.70n/a9
Sep ’25UK£2.40
UK£3.00
+25.4%
6.4%UK£3.36UK£2.70n/a9
Aug ’25UK£2.43
UK£3.00
+23.8%
6.4%UK£3.36UK£2.70n/a9
Jul ’25UK£2.38
UK£3.01
+26.4%
6.6%UK£3.36UK£2.70n/a9
Jun ’25UK£2.50
UK£3.00
+20.1%
6.6%UK£3.36UK£2.70n/a9
May ’25UK£2.59
UK£3.03
+16.9%
7.9%UK£3.54UK£2.70n/a9
Apr ’25UK£2.58
UK£3.01
+16.9%
8.4%UK£3.54UK£2.60n/a9
Mar ’25UK£2.56
UK£3.01
+17.8%
8.4%UK£3.54UK£2.60n/a9
Feb ’25UK£2.61
UK£3.01
+15.6%
8.4%UK£3.54UK£2.60n/a9
Jan ’25UK£2.64
UK£2.97
+12.2%
9.4%UK£3.54UK£2.60n/a8
Dec ’24UK£2.63
UK£2.94
+11.6%
9.6%UK£3.54UK£2.60n/a8
Nov ’24UK£2.36
UK£2.93
+24.4%
10.0%UK£3.54UK£2.60UK£2.307
Oct ’24UK£2.34
UK£2.93
+25.6%
10.0%UK£3.54UK£2.60UK£2.497
Sep ’24UK£2.32
UK£2.95
+27.2%
9.3%UK£3.54UK£2.70UK£2.407
Aug ’24UK£2.52
UK£2.95
+17.4%
9.3%UK£3.54UK£2.70UK£2.437
Jul ’24UK£2.27
UK£2.95
+30.0%
9.3%UK£3.54UK£2.70UK£2.387
Jun ’24UK£2.47
UK£2.93
+18.5%
10.5%UK£3.54UK£2.50UK£2.507
May ’24UK£2.59
UK£3.08
+19.1%
13.9%UK£3.69UK£2.50UK£2.598
Apr ’24UK£2.33
UK£3.08
+32.2%
13.9%UK£3.69UK£2.50UK£2.588
Mar ’24UK£2.49
UK£3.08
+23.6%
13.9%UK£3.69UK£2.50UK£2.568
Feb ’24UK£2.59
UK£3.11
+20.0%
15.1%UK£3.81UK£2.50UK£2.618
Jan ’24UK£2.52
UK£3.16
+25.3%
13.6%UK£3.81UK£2.50UK£2.648
Dec ’23UK£2.42
UK£3.18
+31.6%
13.2%UK£3.81UK£2.50UK£2.638
Nov ’23UK£2.34
UK£3.23
+38.2%
11.1%UK£3.81UK£2.72UK£2.368

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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