Primary Health Properties Plc

LSE:PHP Stock Report

Market Cap: UK£1.3b

Primary Health Properties Valuation

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

Below Fair Value: PHP (£0.95) is trading below our estimate of fair value (£1.19)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

PHP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue15.2x
Enterprise Value/EBITDA18.7x
PEG Ratio1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PHP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12x
THRL Target Healthcare REIT
8.7x8.6%UK£505.5m
IHR Impact Healthcare REIT
20.1x21.2%UK£344.8m
SAFE Safestore Holdings
8.2x5.7%UK£1.6b
BYG Big Yellow Group
11x-4.1%UK£2.1b
PHP Primary Health Properties
46.5x45.7%UK£1.3b

Price-To-Earnings vs Peers: PHP is expensive based on its Price-To-Earnings Ratio (46.5x) compared to the peer average (8.7x).


Price to Earnings Ratio vs Industry

How does PHP's PE Ratio compare vs other companies in the Global Health Care REITs Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a58.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a58.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: PHP is expensive based on its Price-To-Earnings Ratio (46.5x) compared to the Global Health Care REITs industry average (32.9x).


Price to Earnings Ratio vs Fair Ratio

What is PHP'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.

PHP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio46.5x
Fair PE Ratio19.7x

Price-To-Earnings vs Fair Ratio: PHP is expensive based on its Price-To-Earnings Ratio (46.5x) compared to the estimated Fair Price-To-Earnings Ratio (19.7x).


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 PHP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.94
UK£1.02
+9.0%
9.4%UK£1.20UK£0.89n/a9
Mar ’25UK£0.91
UK£1.03
+13.7%
9.2%UK£1.20UK£0.89n/a9
Feb ’25UK£0.94
UK£1.07
+14.1%
9.0%UK£1.22UK£0.94n/a9
Jan ’25UK£1.04
UK£1.07
+2.9%
9.0%UK£1.22UK£0.94n/a9
Dec ’24UK£1.00
UK£1.07
+6.4%
9.0%UK£1.22UK£0.94n/a9
Nov ’24UK£0.91
UK£1.07
+17.5%
9.0%UK£1.22UK£0.94n/a9
Oct ’24UK£0.93
UK£1.07
+15.3%
9.4%UK£1.22UK£0.94n/a8
Sep ’24UK£0.93
UK£1.07
+15.4%
9.9%UK£1.22UK£0.94n/a8
Aug ’24UK£0.92
UK£1.13
+22.6%
17.7%UK£1.62UK£0.94n/a8
Jul ’24UK£0.95
UK£1.21
+26.5%
17.8%UK£1.62UK£0.98n/a8
Jun ’24UK£1.01
UK£1.23
+22.0%
17.6%UK£1.62UK£0.98n/a8
May ’24UK£1.07
UK£1.23
+15.7%
16.2%UK£1.62UK£1.00n/a9
Apr ’24UK£1.01
UK£1.23
+21.8%
16.2%UK£1.62UK£1.00n/a9
Mar ’24UK£1.06
UK£1.25
+17.1%
16.7%UK£1.62UK£1.00UK£0.919
Feb ’24UK£1.11
UK£1.33
+19.7%
17.4%UK£1.65UK£1.05UK£0.949
Jan ’24UK£1.11
UK£1.37
+23.3%
18.6%UK£1.65UK£1.05UK£1.049
Dec ’23UK£1.11
UK£1.37
+23.6%
18.6%UK£1.65UK£1.05UK£1.009
Nov ’23UK£1.14
UK£1.45
+27.3%
13.8%UK£1.65UK£1.10UK£0.919
Oct ’23UK£1.13
UK£1.51
+33.6%
12.5%UK£1.78UK£1.10UK£0.939
Sep ’23UK£1.33
UK£1.60
+20.8%
7.8%UK£1.78UK£1.35UK£0.939
Aug ’23UK£1.45
UK£1.59
+9.7%
9.1%UK£1.78UK£1.35UK£0.929
Jul ’23UK£1.37
UK£1.63
+19.1%
7.6%UK£1.78UK£1.38UK£0.959
Jun ’23UK£1.46
UK£1.63
+11.9%
7.6%UK£1.78UK£1.38UK£1.019
May ’23UK£1.45
UK£1.63
+12.6%
7.6%UK£1.78UK£1.38UK£1.079
Apr ’23UK£1.49
UK£1.62
+8.7%
7.6%UK£1.78UK£1.38UK£1.019
Mar ’23UK£1.34
UK£1.61
+20.4%
7.7%UK£1.78UK£1.38UK£1.069

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


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