Derwent London Plc

LSE:DLN Stock Report

Market Cap: UK£2.3b

Derwent London Valuation

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

Discounted Cash Flow
Simply Wall St
UK£2.03
Fair Value
897.0% overvalued intrinsic discount
14
Number of Analysts

Below Fair Value: DLN (£20.24) is trading above our estimate of fair value (£2.03)

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 profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DLN. This is calculated by dividing DLN's market cap by their current earnings.
What is DLN's PE Ratio?
PE Ratio19.6x
EarningsUK£115.90m
Market CapUK£2.27b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for DLN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.2x
BYG Big Yellow Group
7.5x-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
33.4xn/aUK£1.4b
DLN Derwent London
19.6x16.6%UK£2.3b

Price-To-Earnings vs Peers: DLN is expensive based on its Price-To-Earnings Ratio (19.6x) compared to the peer average (17.2x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
DLN 19.6xIndustry Avg. 21.3xNo. of Companies12PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DLN is good value based on its Price-To-Earnings Ratio (19.6x) compared to the Global Office REITs industry average (21.2x).

Price to Earnings Ratio vs Fair Ratio

What is DLN'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.

DLN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.6x
Fair PE Ratio15.9x

Price-To-Earnings vs Fair Ratio: DLN is expensive based on its Price-To-Earnings Ratio (19.6x) 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 DLN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£20.24
UK£23.43
+15.7%
13.3%UK£27.67UK£18.20n/a14
Apr ’26UK£18.70
UK£24.06
+28.7%
12.2%UK£29.50UK£18.68n/a15
Mar ’26UK£18.39
UK£24.13
+31.2%
14.2%UK£30.00UK£18.86n/a16
Feb ’26UK£19.61
UK£24.40
+24.4%
13.2%UK£30.00UK£18.86n/a16
Jan ’26UK£19.59
UK£25.43
+29.8%
10.8%UK£30.00UK£20.39n/a16
Dec ’25UK£21.14
UK£25.48
+20.5%
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£14.53UK£20.1017
Apr ’25UK£21.68
UK£23.66
+9.1%
14.1%UK£27.50UK£14.53UK£18.7017
Mar ’25UK£20.04
UK£23.74
+18.4%
13.9%UK£27.00UK£14.53UK£18.3917
Feb ’25UK£20.74
UK£24.17
+16.5%
15.1%UK£29.00UK£14.53UK£19.6117
Jan ’25UK£23.60
UK£23.36
-1.0%
16.8%UK£29.00UK£14.53UK£19.5915
Dec ’24UK£21.72
UK£23.35
+7.5%
17.5%UK£29.00UK£14.53UK£21.1415
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
AnalystConsensusTarget
Consensus Narrative from 14 Analysts
UK£23.43
Fair Value
13.6% 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 Analysis2025/05/06 06:49
End of Day Share Price 2025/05/06 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