Derwent London Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: DLN (£20.6) is trading above our estimate of fair value (£15.98)

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


Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for DLN. This is calculated by dividing DLN's market cap by their current revenue.
What is DLN's PS Ratio?
PS Ratio8.3x
SalesUK£278.60m
Market CapUK£2.31b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for DLN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.7x
GPE Great Portland Estates
8x1.7%UK£1.2b
WKP Workspace Group
5.6x-2.4%UK£1.0b
GWI Globalworth Real Estate Investments
3.2xn/a€746.8m
CLI CLS Holdings
2.2x-0.6%UK£333.8m
DLN Derwent London
8.3x-1.4%UK£2.3b

Price-To-Sales vs Peers: DLN is expensive based on its Price-To-Sales Ratio (8.3x) compared to the peer average (4.7x).


Price to Sales Ratio vs Industry

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

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
DLN 8.3xIndustry Avg. 8.3xNo. of Companies5PS0612182430+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: DLN is good value based on its Price-To-Sales Ratio (8.3x) compared to the European Office REITs industry average (8.4x).


Price to Sales Ratio vs Fair Ratio

What is DLN'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.

DLN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio8.3x
Fair PS Ratio9x

Price-To-Sales vs Fair Ratio: DLN is good value based on its Price-To-Sales Ratio (8.3x) compared to the estimated Fair Price-To-Sales Ratio (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 DLN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£20.60
UK£25.48
+23.7%
10.9%UK£30.00UK£20.39n/a16
Nov ’25UK£21.74
UK£25.49
+17.3%
10.7%UK£30.00UK£20.50n/a16
Oct ’25UK£24.30
UK£24.65
+1.5%
15.1%UK£30.00UK£14.53n/a16
Sep ’25UK£23.36
UK£24.16
+3.4%
13.6%UK£27.50UK£14.53n/a16
Aug ’25UK£23.10
UK£24.03
+4.0%
13.3%UK£27.50UK£14.53n/a16
Jul ’25UK£22.42
UK£24.06
+7.3%
13.4%UK£27.50UK£14.53n/a16
Jun ’25UK£23.28
UK£23.82
+2.3%
13.6%UK£27.50UK£14.53n/a17
May ’25UK£20.40
UK£23.76
+16.5%
13.5%UK£27.50UK£14.53n/a17
Apr ’25UK£21.68
UK£23.66
+9.1%
14.1%UK£27.50UK£14.53n/a17
Mar ’25UK£20.04
UK£23.74
+18.4%
13.9%UK£27.00UK£14.53n/a17
Feb ’25UK£20.74
UK£24.17
+16.5%
15.1%UK£29.00UK£14.53n/a17
Jan ’25UK£23.60
UK£23.36
-1.0%
16.8%UK£29.00UK£14.53n/a15
Dec ’24UK£21.72
UK£23.35
+7.5%
17.5%UK£29.00UK£14.53n/a15
Nov ’24UK£18.45
UK£23.72
+28.6%
18.4%UK£30.50UK£14.53UK£21.7417
Oct ’24UK£19.27
UK£24.22
+25.7%
18.1%UK£30.50UK£14.53UK£24.3017
Sep ’24UK£18.34
UK£25.74
+40.3%
19.6%UK£33.99UK£14.53UK£23.3617
Aug ’24UK£20.92
UK£26.13
+24.9%
18.2%UK£33.99UK£14.53UK£23.1017
Jul ’24UK£20.50
UK£27.12
+32.3%
12.8%UK£33.99UK£20.50UK£22.4217
Jun ’24UK£21.50
UK£27.36
+27.2%
12.7%UK£33.99UK£20.50UK£23.2817
May ’24UK£24.02
UK£27.67
+15.2%
12.5%UK£33.99UK£20.50UK£20.4018
Apr ’24UK£23.58
UK£27.67
+17.3%
12.5%UK£33.99UK£20.50UK£21.6818
Mar ’24UK£25.86
UK£27.29
+5.5%
12.5%UK£33.99UK£20.50UK£20.0418
Feb ’24UK£25.94
UK£26.48
+2.1%
12.9%UK£33.99UK£20.50UK£20.7418
Jan ’24UK£23.68
UK£26.38
+11.4%
13.1%UK£33.99UK£20.00UK£23.6018
Dec ’23UK£23.58
UK£26.49
+12.4%
13.1%UK£33.99UK£20.00UK£21.7218
Nov ’23UK£22.12
UK£27.16
+22.8%
14.1%UK£33.99UK£20.00UK£18.4518

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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