DFS Furniture plc

BATS-CHIXE:DFSl Stock Report

Market Cap: UK£262.5m

DFS Furniture Valuation

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

Below Fair Value: DFSl (£1.14) is trading below our estimate of fair value (£1.84)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

DFSl 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/Revenue0.8x
Enterprise Value/EBITDA8.5x
PEG Ratio0.4x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for DFSl vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.8x
SCS ScS Group
21.5x26.7%UK£95.6m
DNLM Dunelm Group
14.4x6.3%UK£2.1b
VIC Victorian Plumbing Group
25.9x22.1%UK£305.4m
HFD Halfords Group
9.7x11.4%UK£327.4m
DFSl DFS Furniture
14.7x38.3%UK£262.5m

Price-To-Earnings vs Peers: DFSl is good value based on its Price-To-Earnings Ratio (14.7x) compared to the peer average (17.8x).


Price to Earnings Ratio vs Industry

How does DFSl's PE Ratio compare vs other companies in the GB Specialty Retail Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.7%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.7%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: DFSl is good value based on its Price-To-Earnings Ratio (14.7x) compared to the UK Specialty Retail industry average (15.1x).


Price to Earnings Ratio vs Fair Ratio

What is DFSl'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.

DFSl PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.7x
Fair PE Ratio24.2x

Price-To-Earnings vs Fair Ratio: DFSl is good value based on its Price-To-Earnings Ratio (14.7x) compared to the estimated Fair Price-To-Earnings Ratio (24.2x).


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 DFSl forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.14
UK£1.52
+33.3%
20.1%UK£2.00UK£1.20n/a5
May ’25UK£1.14
UK£1.52
+33.3%
20.1%UK£2.00UK£1.20n/a5
Apr ’25UK£1.10
UK£1.52
+37.9%
20.1%UK£2.00UK£1.20n/a5
Mar ’25UK£1.22
UK£1.65
+35.2%
16.7%UK£2.00UK£1.20n/a5
Feb ’25UK£1.15
UK£1.65
+43.7%
16.7%UK£2.00UK£1.20n/a5
Jan ’25UK£1.23
UK£1.66
+35.3%
16.8%UK£2.00UK£1.21n/a5
Dec ’24UK£1.06
UK£1.59
+49.0%
19.4%UK£2.00UK£1.20n/a6
Nov ’24UK£1.06
UK£1.59
+49.0%
19.4%UK£2.00UK£1.20n/a6
Oct ’24UK£1.10
UK£1.59
+44.7%
19.4%UK£2.00UK£1.20n/a6
Sep ’24UK£1.13
UK£1.61
+42.1%
20.7%UK£2.00UK£1.20n/a6
Aug ’24UK£1.16
UK£1.66
+43.2%
17.4%UK£2.00UK£1.25n/a6
Jul ’24UK£1.08
UK£1.78
+65.1%
15.2%UK£2.10UK£1.35n/a6
Jun ’24UK£1.18
UK£1.86
+57.5%
17.4%UK£2.25UK£1.35n/a6
May ’24UK£1.26
UK£1.86
+47.5%
17.4%UK£2.25UK£1.35UK£1.146
Apr ’24UK£1.38
UK£1.86
+34.3%
17.4%UK£2.25UK£1.35UK£1.106
Mar ’24UK£1.50
UK£1.81
+20.1%
22.8%UK£2.25UK£1.04UK£1.226
Feb ’24UK£1.48
UK£1.78
+20.1%
24.4%UK£2.25UK£1.04UK£1.156
Jan ’24UK£1.55
UK£1.96
+26.8%
27.8%UK£2.80UK£1.04UK£1.237
Dec ’23UK£1.54
UK£1.95
+26.6%
28.8%UK£2.80UK£0.97UK£1.067
Nov ’23UK£1.24
UK£1.90
+52.4%
33.6%UK£2.80UK£0.95UK£1.067
Oct ’23UK£1.05
UK£2.00
+91.1%
26.0%UK£2.80UK£0.97UK£1.107
Sep ’23UK£1.19
UK£2.18
+83.1%
27.2%UK£2.80UK£1.00UK£1.137
Aug ’23UK£1.45
UK£2.38
+64.4%
14.6%UK£2.80UK£1.70UK£1.167
Jul ’23UK£1.57
UK£2.38
+51.6%
14.6%UK£2.80UK£1.70UK£1.087
Jun ’23UK£1.87
UK£2.86
+53.1%
19.8%UK£3.50UK£2.25UK£1.186
May ’23UK£1.67
UK£3.03
+81.5%
27.1%UK£4.50UK£2.25UK£1.266

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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