Big Yellow Group Plc

LSE:BYG Stock Report

Market Cap: UK£2.3b

Big Yellow Group Valuation

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

Below Fair Value: BYG (£11.74) is trading below our estimate of fair value (£16.11)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BYG. This is calculated by dividing BYG's market cap by their current earnings.
What is BYG's PE Ratio?
PE Ratio9.6x
EarningsUK£239.83m
Market CapUK£2.30b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BYG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.9x
SAFE Safestore Holdings
6.5x-3.0%UK£1.7b
BBOX Tritax Big Box REIT
21.6x25.4%UK£3.4b
LMP LondonMetric Property
32.4x20.1%UK£3.8b
AGR Assura
19.3x20.8%UK£1.3b
BYG Big Yellow Group
9.6x-1.2%UK£2.3b

Price-To-Earnings vs Peers: BYG is good value based on its Price-To-Earnings Ratio (9.6x) compared to the peer average (19.9x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
BYG 9.6xIndustry Avg. 19.0xNo. of Companies7PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BYG is good value based on its Price-To-Earnings Ratio (9.6x) compared to the Global Specialized REITs industry average (19x).

Price to Earnings Ratio vs Fair Ratio

What is BYG'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.

BYG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.6x
Fair PE Ratio15.2x

Price-To-Earnings vs Fair Ratio: BYG is good value based on its Price-To-Earnings Ratio (9.6x) compared to the estimated Fair Price-To-Earnings Ratio (15.2x).

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 BYG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£11.74
UK£13.35
+13.7%
10.0%UK£16.50UK£11.32n/a15
Nov ’25UK£12.04
UK£13.47
+11.9%
9.5%UK£16.50UK£11.57n/a15
Oct ’25UK£12.90
UK£13.31
+3.2%
7.6%UK£15.25UK£11.57n/a15
Sep ’25UK£12.62
UK£13.18
+4.5%
8.5%UK£15.25UK£11.50n/a15
Aug ’25UK£12.20
UK£12.82
+5.1%
9.8%UK£15.20UK£9.84n/a15
Jul ’25UK£11.72
UK£12.68
+8.2%
10.2%UK£15.20UK£9.84n/a15
Jun ’25UK£12.48
UK£12.48
-0.02%
11.9%UK£14.10UK£9.03n/a15
May ’25UK£10.86
UK£12.11
+11.6%
11.4%UK£14.10UK£9.03n/a15
Apr ’25UK£10.64
UK£12.11
+13.8%
11.4%UK£14.10UK£9.03n/a15
Mar ’25UK£10.37
UK£12.10
+16.7%
11.9%UK£14.30UK£9.03n/a15
Feb ’25UK£11.42
UK£12.10
+5.9%
11.9%UK£14.30UK£9.03n/a15
Jan ’25UK£12.22
UK£11.99
-1.9%
11.1%UK£14.00UK£9.03n/a15
Dec ’24UK£11.04
UK£11.81
+7.0%
10.8%UK£14.00UK£9.03n/a15
Nov ’24UK£9.61
UK£11.69
+21.6%
11.1%UK£14.00UK£9.03UK£12.0414
Oct ’24UK£9.39
UK£11.96
+27.4%
12.6%UK£14.20UK£9.03UK£12.9014
Sep ’24UK£10.57
UK£12.13
+14.7%
11.2%UK£14.20UK£9.03UK£12.6214
Aug ’24UK£10.63
UK£12.22
+15.0%
11.0%UK£14.20UK£9.03UK£12.2014
Jul ’24UK£10.73
UK£12.43
+15.9%
8.7%UK£14.20UK£10.82UK£11.7215
Jun ’24UK£11.57
UK£12.47
+7.8%
8.3%UK£14.20UK£11.00UK£12.4814
May ’24UK£12.24
UK£12.75
+4.1%
9.5%UK£15.00UK£11.00UK£10.8615
Apr ’24UK£11.69
UK£12.75
+9.0%
9.5%UK£15.00UK£11.00UK£10.6415
Mar ’24UK£11.95
UK£12.75
+6.7%
9.5%UK£15.00UK£11.00UK£10.3715
Feb ’24UK£12.18
UK£12.45
+2.2%
9.8%UK£15.00UK£10.50UK£11.4215
Jan ’24UK£11.47
UK£12.30
+7.2%
8.6%UK£15.00UK£10.50UK£12.2214
Dec ’23UK£11.23
UK£12.87
+14.6%
15.8%UK£18.46UK£10.50UK£11.0414
Nov ’23UK£11.46
UK£13.03
+13.7%
18.1%UK£18.46UK£9.50UK£9.6114

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

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