Unite Group PLC

LSE:UTG Stock Report

Market Cap: UK£4.2b

Unite Group Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: UTG (£8.46) is trading above our estimate of fair value (£0.62)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for UTG. This is calculated by dividing UTG's market cap by their current earnings.
What is UTG's PE Ratio?
PE Ratio15.2x
EarningsUK£272.50m
Market CapUK£4.19b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for UTG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.7x
ESP Empiric Student Property
10.9x22.6%UK£582.9m
HOME Home Reit
6.3xn/aUK£300.8m
SOHO Triple Point Social Housing REIT
9.5x27.0%UK£244.3m
LMP LondonMetric Property
32x20.1%UK£3.8b
UTG Unite Group
15.2x16.8%UK£4.1b

Price-To-Earnings vs Peers: UTG is good value based on its Price-To-Earnings Ratio (15.2x) compared to the peer average (17.5x).

Price to Earnings Ratio vs Industry

How does UTG's PE Ratio compare vs other companies in the European Residential REITs Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
UTG 15.2xIndustry Avg. 26.1xNo. of Companies5PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: UTG is good value based on its Price-To-Earnings Ratio (15.2x) compared to the Global Residential REITs industry average (26.1x).

Price to Earnings Ratio vs Fair Ratio

What is UTG'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.

UTG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.2x
Fair PE Ratio18.9x

Price-To-Earnings vs Fair Ratio: UTG is good value based on its Price-To-Earnings Ratio (15.2x) compared to the estimated Fair Price-To-Earnings Ratio (18.8x).

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 UTG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£8.46
UK£11.01
+30.2%
5.8%UK£12.00UK£9.71n/a11
Nov ’25UK£8.74
UK£11.11
+27.1%
6.9%UK£12.48UK£9.71n/a11
Oct ’25UK£9.43
UK£11.07
+17.4%
7.0%UK£12.48UK£9.71n/a11
Sep ’25UK£9.58
UK£11.05
+15.4%
6.9%UK£12.48UK£9.71n/a11
Aug ’25UK£9.58
UK£11.05
+15.4%
6.9%UK£12.48UK£9.71n/a11
Jul ’25UK£8.90
UK£11.20
+25.9%
6.2%UK£12.48UK£10.00n/a11
Jun ’25UK£9.32
UK£11.07
+18.9%
7.1%UK£12.48UK£9.71n/a12
May ’25UK£9.40
UK£11.07
+17.8%
7.1%UK£12.48UK£9.71n/a12
Apr ’25UK£9.78
UK£10.95
+11.9%
6.1%UK£11.60UK£9.71n/a11
Mar ’25UK£9.59
UK£10.92
+13.9%
6.6%UK£11.60UK£9.39n/a11
Feb ’25UK£10.12
UK£10.88
+7.5%
5.2%UK£11.60UK£10.00n/a11
Jan ’25UK£10.44
UK£10.52
+0.8%
6.1%UK£11.60UK£9.45n/a11
Dec ’24UK£9.91
UK£10.44
+5.4%
5.9%UK£11.60UK£9.45n/a11
Nov ’24UK£8.92
UK£10.53
+18.1%
6.0%UK£11.60UK£9.45UK£8.7411
Oct ’24UK£8.98
UK£10.56
+17.6%
6.2%UK£11.60UK£9.45UK£9.4310
Sep ’24UK£9.27
UK£10.50
+13.3%
6.0%UK£11.60UK£9.45UK£9.5810
Aug ’24UK£9.64
UK£10.71
+11.2%
6.9%UK£11.94UK£9.45UK£9.5810
Jul ’24UK£8.70
UK£10.69
+22.9%
6.8%UK£11.94UK£9.45UK£8.9010
Jun ’24UK£8.98
UK£10.69
+19.0%
6.8%UK£11.94UK£9.45UK£9.3210
May ’24UK£9.59
UK£10.75
+12.1%
5.9%UK£11.94UK£9.70UK£9.4011
Apr ’24UK£9.60
UK£10.83
+12.8%
6.2%UK£11.94UK£9.70UK£9.7811
Mar ’24UK£9.52
UK£10.93
+14.8%
5.9%UK£12.00UK£9.86UK£9.5911
Feb ’24UK£9.97
UK£10.61
+6.4%
9.0%UK£11.94UK£8.75UK£10.1211
Jan ’24UK£9.10
UK£10.62
+16.7%
9.1%UK£11.94UK£8.75UK£10.4411
Dec ’23UK£9.34
UK£10.62
+13.7%
9.1%UK£11.94UK£8.75UK£9.9111
Nov ’23UK£9.03
UK£10.99
+21.7%
9.2%UK£12.75UK£8.75UK£8.9211

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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