Derwent London Plc

BATS-CHIXE:DLNL Stock Report

Market Cap: UK£2.1b

Derwent London Valuation

Is DLNL 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-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 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£16.00
Fair Value
17.6% overvalued intrinsic discount
16
Number of Analysts

Below Fair Value: DLNL (£18.81) is trading above our estimate of fair value (£16)

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 unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for DLNL. This is calculated by dividing DLNL's market cap by their current revenue.
What is DLNL's PS Ratio?
PS Ratio7.6x
SalesUK£278.60m
Market CapUK£2.11b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for DLNL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.2x
GPE Great Portland Estates
7.3x3.4%UK£1.1b
WKP Workspace Group
4.5x-1.5%UK£834.6m
GWI Globalworth Real Estate Investments
3.1xn/a€719.0m
CLI CLS Holdings
1.8x-0.6%UK£283.4m
DLNL Derwent London
7.6x-1.4%UK£2.1b

Price-To-Sales vs Peers: DLNL is expensive based on its Price-To-Sales Ratio (7.6x) compared to the peer average (4.2x).

Price to Sales Ratio vs Industry

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

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
No. of Companies4PS048121620+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: DLNL is expensive based on its Price-To-Sales Ratio (7.6x) compared to the European Office REITs industry average (7.5x).

Price to Sales Ratio vs Fair Ratio

What is DLNL'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.

DLNL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio7.6x
Fair PS Ratio8.1x

Price-To-Sales vs Fair Ratio: DLNL is good value based on its Price-To-Sales Ratio (7.6x) compared to the estimated Fair Price-To-Sales Ratio (8.1x).

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£18.81
UK£24.76
+31.6%
11.9%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£14.53n/a17
Apr ’25UK£21.70
UK£23.66
+9.0%
14.1%UK£27.50UK£14.53n/a17
Mar ’25UK£19.95
UK£23.74
+19.0%
13.9%UK£27.00UK£14.53n/a17
Feb ’25UK£20.80
UK£24.17
+16.2%
15.1%UK£29.00UK£14.53n/a17
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
Apr ’24UK£23.48
UK£27.67
+17.8%
12.5%UK£33.99UK£20.50UK£21.7018
Mar ’24UK£25.84
UK£27.29
+5.6%
12.5%UK£33.99UK£20.50UK£19.9518
Feb ’24UK£25.94
UK£26.48
+2.1%
12.9%UK£33.99UK£20.50UK£20.8018
Jan ’24UK£23.72
UK£26.38
+11.2%
13.1%UK£33.99UK£20.00UK£23.6218
Analyst Price Target
Consensus Narrative from 16 Analysts
UK£24.81
Fair Value
24.2% undervalued intrinsic discount
16
Number of Analysts

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/23 19:35
End of Day Share Price 2025/01/23 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

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 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

Derwent London Plc is covered by 39 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Aaron GuyBarclays
Paul MayBarclays
Miranda CockburnBerenberg