Derwent London Plc

BATS-CHIXE:DLNL Stock Report

Market Cap: UK£2.2b

Derwent London Valuation

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

Discounted Cash Flow
Simply Wall St
UK£2.02
Fair Value
881.1% overvalued intrinsic discount
14
Number of Analysts

Below Fair Value: DLNL (£19.85) is trading above our estimate of fair value (£2.02)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for DLNL. This is calculated by dividing DLNL's market cap by their current earnings.
What is DLNL's PE Ratio?
PE Ratio19.2x
EarningsUK£115.90m
Market CapUK£2.23b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for DLNL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.1x
BYG Big Yellow Group
7.4x-2.8%UK£2.0b
AGR Assura
24x31.9%UK£1.6b
SAFE Safestore Holdings
3.8x-12.6%UK£1.4b
PHP Primary Health Properties
33.2xn/aUK£1.4b
DLNL Derwent London
19.2x16.6%UK£2.2b

Price-To-Earnings vs Peers: DLNL is expensive based on its Price-To-Earnings Ratio (19.2x) compared to the peer average (17.1x).

Price to Earnings Ratio vs Industry

How does DLNL's PE Ratio compare vs other companies in the Global Office REITs Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies12PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DLNL is good value based on its Price-To-Earnings Ratio (19.2x) compared to the Global Office REITs industry average (21.3x).

Price to Earnings Ratio vs Fair Ratio

What is DLNL'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.

DLNL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.2x
Fair PE Ratio15.9x

Price-To-Earnings vs Fair Ratio: DLNL is expensive based on its Price-To-Earnings Ratio (19.2x) compared to the estimated Fair Price-To-Earnings Ratio (15.9x).

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 DLNL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£19.85
UK£23.43
+18.0%
13.3%UK£27.67UK£18.20n/a14
May ’26UK£20.12
UK£23.43
+16.4%
13.3%UK£27.67UK£18.20n/a14
Apr ’26UK£18.69
UK£24.06
+28.7%
12.2%UK£29.50UK£18.68n/a15
Mar ’26UK£18.49
UK£24.13
+30.5%
14.2%UK£30.00UK£18.86n/a16
Feb ’26UK£19.62
UK£24.40
+24.4%
13.2%UK£30.00UK£18.86n/a16
Jan ’26UK£19.74
UK£25.43
+28.8%
10.8%UK£30.00UK£20.39n/a16
Dec ’25UK£21.16
UK£25.48
+20.4%
10.9%UK£30.00UK£20.39n/a16
Nov ’25UK£21.80
UK£25.49
+16.9%
10.7%UK£30.00UK£20.50n/a16
Oct ’25UK£24.32
UK£24.65
+1.4%
15.1%UK£30.00UK£14.53n/a16
Sep ’25UK£23.32
UK£24.16
+3.6%
13.6%UK£27.50UK£14.53n/a16
Aug ’25UK£23.01
UK£24.03
+4.4%
13.3%UK£27.50UK£14.53n/a16
Jul ’25UK£22.52
UK£24.06
+6.8%
13.4%UK£27.50UK£14.53n/a16
Jun ’25UK£23.24
UK£23.82
+2.5%
13.6%UK£27.50UK£14.53n/a17
May ’25UK£20.41
UK£23.76
+16.4%
13.5%UK£27.50UK£14.53UK£20.1217
Apr ’25UK£21.70
UK£23.66
+9.0%
14.1%UK£27.50UK£14.53UK£18.6917
Mar ’25UK£19.95
UK£23.74
+19.0%
13.9%UK£27.00UK£14.53UK£18.4917
Feb ’25UK£20.80
UK£24.17
+16.2%
15.1%UK£29.00UK£14.53UK£19.6217
Jan ’25UK£23.62
UK£23.36
-1.1%
16.8%UK£29.00UK£14.53UK£19.7415
Dec ’24UK£21.68
UK£23.35
+7.7%
17.5%UK£29.00UK£14.53UK£21.1615
Nov ’24UK£18.44
UK£23.72
+28.6%
18.4%UK£30.50UK£14.53UK£21.8017
Oct ’24UK£19.39
UK£24.22
+24.9%
18.1%UK£30.50UK£14.53UK£24.3217
Sep ’24UK£18.33
UK£25.74
+40.4%
19.6%UK£33.99UK£14.53UK£23.3217
Aug ’24UK£20.88
UK£26.13
+25.1%
18.2%UK£33.99UK£14.53UK£23.0117
Jul ’24UK£20.56
UK£27.12
+31.9%
12.8%UK£33.99UK£20.50UK£22.5217
Jun ’24UK£21.54
UK£27.36
+27.0%
12.7%UK£33.99UK£20.50UK£23.2417
May ’24UK£23.98
UK£27.67
+15.4%
12.5%UK£33.99UK£20.50UK£20.4118
AnalystConsensusTarget
Consensus Narrative from 14 Analysts
UK£23.45
Fair Value
15.3% undervalued intrinsic discount
14
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/05/07 11:08
End of Day Share Price 2025/05/07 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

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.

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 Github.

Analyst Sources

Derwent London Plc is covered by 36 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
Paul MayBarclays
Paul MayBarclays
Aaron GuyBarclays