Dunelm Group plc

BATS-CHIXE:DNLML Stock Report

Market Cap: UK£2.4b

Dunelm Group Valuation

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

Below Fair Value: DNLML (£11.71) is trading below our estimate of fair value (£15.48)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

DNLML 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/Revenue1.6x
Enterprise Value/EBITDA11.1x
PEG Ratio2.7x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for DNLML vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.6x
SCS ScS Group
21.5x26.7%UK£95.6m
PETS Pets at Home Group
17.7x13.2%UK£1.4b
FRAS Frasers Group
9.3x10.3%UK£3.7b
SMWH WH Smith
30x23.5%UK£1.9b
DNLML Dunelm Group
15.6x5.8%UK£2.4b

Price-To-Earnings vs Peers: DNLML is good value based on its Price-To-Earnings Ratio (15.6x) compared to the peer average (19.6x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.8%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.8%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: DNLML is good value based on its Price-To-Earnings Ratio (15.6x) compared to the UK Specialty Retail industry average (17.3x).

Price to Earnings Ratio vs Fair Ratio

What is DNLML'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.

DNLML PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.6x
Fair PE Ratio16x

Price-To-Earnings vs Fair Ratio: DNLML is good value based on its Price-To-Earnings Ratio (15.6x) compared to the estimated Fair Price-To-Earnings Ratio (16x).

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 DNLML forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£11.71
UK£12.74
+8.8%
8.9%UK£14.70UK£11.20n/a11
Sep ’25UK£12.50
UK£12.27
-1.8%
9.2%UK£14.10UK£10.60n/a11
Aug ’25UK£12.34
UK£12.27
-0.5%
9.2%UK£14.10UK£10.60n/a11
Jul ’25UK£10.67
UK£11.71
+9.7%
11.0%UK£14.10UK£10.00n/a11
Jun ’25UK£10.96
UK£11.75
+7.2%
10.5%UK£14.10UK£10.00n/a12
May ’25UK£9.95
UK£11.75
+18.1%
10.5%UK£14.10UK£10.00n/a12
Apr ’25UK£11.31
UK£11.98
+6.0%
9.7%UK£14.10UK£10.50n/a12
Mar ’25UK£11.60
UK£11.98
+3.3%
9.7%UK£14.10UK£10.50n/a12
Feb ’25UK£10.90
UK£11.99
+10.0%
9.6%UK£14.10UK£10.50n/a12
Jan ’25UK£11.03
UK£11.93
+8.2%
9.4%UK£13.75UK£10.45n/a12
Dec ’24UK£10.51
UK£11.93
+13.5%
9.4%UK£13.75UK£10.45n/a12
Nov ’24UK£9.75
UK£12.14
+24.6%
10.5%UK£14.00UK£10.00n/a12
Oct ’24UK£10.55
UK£12.16
+15.2%
10.2%UK£14.00UK£10.00n/a14
Sep ’24UK£11.44
UK£12.41
+8.5%
8.9%UK£14.00UK£10.00UK£12.5014
Aug ’24UK£11.60
UK£12.45
+7.3%
9.4%UK£14.50UK£10.00UK£12.3414
Jul ’24UK£11.19
UK£12.55
+12.1%
8.5%UK£14.50UK£10.50UK£10.6714
Jun ’24UK£11.16
UK£12.52
+12.2%
8.7%UK£14.50UK£10.50UK£10.9614
May ’24UK£11.46
UK£12.47
+8.8%
8.8%UK£14.50UK£10.50UK£9.9513
Apr ’24UK£11.08
UK£12.42
+12.1%
8.9%UK£14.50UK£10.50UK£11.3112
Mar ’24UK£12.46
UK£12.41
-0.4%
9.3%UK£14.50UK£10.50UK£11.6011
Feb ’24UK£11.76
UK£11.11
-5.6%
19.5%UK£13.75UK£7.00UK£10.9010
Jan ’24UK£9.80
UK£9.87
+0.7%
19.7%UK£13.75UK£7.00UK£11.0311
Dec ’23UK£10.05
UK£9.74
-3.1%
22.1%UK£13.75UK£7.00UK£10.5111
Nov ’23UK£8.80
UK£10.01
+13.8%
20.7%UK£13.75UK£7.10UK£9.7510
Oct ’23UK£7.34
UK£10.19
+38.8%
20.5%UK£13.75UK£7.10UK£10.5510
Sep ’23UK£6.77
UK£10.76
+59.0%
14.0%UK£13.75UK£8.50UK£11.4410

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

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y