DFS Furniture plc

BATS-CHIXE:DFSl Stock Report

Market Cap: UK£311.4m

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

Below Fair Value: DFSl (£1.33) is trading below our estimate of fair value (£1.79)

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?

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

The above table shows the Price to Sales ratio for DFSl. This is calculated by dividing DFSl's market cap by their current revenue.
What is DFSl's PS Ratio?
PS Ratio0.3x
SalesUK£987.10m
Market CapUK£311.43m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for DFSl vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.6x
SCS ScS Group
0.3x6.3%UK£95.6m
PROC ProCook Group
0.6x9.4%UK£37.2m
DNLM Dunelm Group
1.4x4.6%UK£2.3b
WIX Wickes Group
0.2x3.7%UK£362.1m
DFSl DFS Furniture
0.3x4.4%UK£311.4m

Price-To-Sales vs Peers: DFSl is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (0.6x).

Price to Sales Ratio vs Industry

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

8 CompaniesPrice / SalesEstimated GrowthMarket Cap
VTU Vertu Motors
0.04x5.8%US$249.95m
MOTR Motorpoint Group
0.09x6.3%US$127.82m
WRKS TheWorks.co.uk
0.05xn/aUS$17.62m
CFYN Caffyns
0.05xn/aUS$15.38m
No. of Companies8PS00.40.81.21.62+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: DFSl is good value based on its Price-To-Sales Ratio (0.3x) compared to the UK Specialty Retail industry average (0.3x).

Price to Sales Ratio vs Fair Ratio

What is DFSl'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.

DFSl PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ratio0.6x

Price-To-Sales vs Fair Ratio: DFSl is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (0.6x).

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£1.33
UK£1.55
+17.0%
20.7%UK£2.00UK£1.20n/a4
Nov ’25UK£1.34
UK£1.48
+9.9%
21.1%UK£2.00UK£1.20n/a4
Oct ’25UK£1.22
UK£1.48
+20.9%
21.1%UK£2.00UK£1.20n/a4
Sep ’25n/a
UK£1.41
0%
25.3%UK£2.00UK£1.10n/a4
Aug ’25UK£1.20
UK£1.41
+17.9%
25.3%UK£2.00UK£1.10n/a4
Jul ’25UK£1.13
UK£1.41
+25.1%
25.3%UK£2.00UK£1.10n/a4
Jun ’25UK£1.16
UK£1.52
+31.3%
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£1.20UK£1.346
Oct ’24UK£1.10
UK£1.59
+44.7%
19.4%UK£2.00UK£1.20UK£1.226
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£1.25UK£1.206
Jul ’24UK£1.08
UK£1.78
+65.1%
15.2%UK£2.10UK£1.35UK£1.136
Jun ’24UK£1.18
UK£1.86
+57.5%
17.4%UK£2.25UK£1.35UK£1.166
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

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

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