Frasers Group Plc

BATS-CHIXE:FRASL Stock Report

Market Cap: UK£3.2b

Frasers Group Valuation

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

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: FRASL (£7.51) is trading below our estimate of fair value (£10.65)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for FRASL. This is calculated by dividing FRASL's market cap by their current earnings.
What is FRASL's PE Ratio?
PE Ratio8.3x
EarningsUK£393.30m
Market CapUK£3.25b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for FRASL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19x
JD. JD Sports Fashion
17.6x24.5%UK£6.0b
SMWH WH Smith
24.3x24.1%UK£1.6b
PETS Pets at Home Group
16.4x14.3%UK£1.3b
WOSG Watches of Switzerland Group
17.7x19.6%UK£1.0b
FRASL Frasers Group
8.3x9.3%UK£3.2b

Price-To-Earnings vs Peers: FRASL is good value based on its Price-To-Earnings Ratio (8.3x) compared to the peer average (19x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
WRKS TheWorks.co.uk
2.3xn/aUS$18.63m
No more companies available in this PE range
No. of Companies3PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FRASL is good value based on its Price-To-Earnings Ratio (8.3x) compared to the UK Specialty Retail industry average (17x).

Price to Earnings Ratio vs Fair Ratio

What is FRASL'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.

FRASL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.3x
Fair PE Ratio15.7x

Price-To-Earnings vs Fair Ratio: FRASL is good value based on its Price-To-Earnings Ratio (8.3x) compared to the estimated Fair Price-To-Earnings Ratio (15.7x).

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 FRASL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£7.51
UK£10.66
+41.9%
10.5%UK£13.00UK£9.60n/a6
Nov ’25UK£7.67
UK£10.79
+40.7%
11.0%UK£13.00UK£9.60n/a5
Oct ’25UK£8.20
UK£11.17
+36.3%
11.8%UK£13.00UK£10.00n/a3
Sep ’25UK£8.63
UK£10.23
+18.6%
14.4%UK£13.00UK£7.65n/a7
Aug ’25UK£8.77
UK£10.23
+16.6%
14.4%UK£13.00UK£7.65n/a7
Jul ’25UK£8.79
UK£9.68
+10.2%
10.2%UK£10.85UK£7.65n/a6
Jun ’25UK£8.79
UK£9.09
+3.4%
19.0%UK£10.85UK£5.50n/a7
May ’25UK£8.03
UK£9.09
+13.2%
19.0%UK£10.85UK£5.50n/a7
Apr ’25UK£8.15
UK£9.23
+13.3%
19.8%UK£11.00UK£5.50n/a7
Mar ’25UK£8.15
UK£9.85
+20.9%
11.2%UK£11.00UK£7.65n/a6
Feb ’25UK£8.00
UK£9.85
+23.1%
11.2%UK£11.00UK£7.65n/a6
Jan ’25UK£9.13
UK£9.14
+0.1%
21.1%UK£11.00UK£5.50n/a7
Dec ’24UK£8.99
UK£8.62
-4.0%
20.9%UK£10.60UK£5.50n/a7
Nov ’24UK£8.10
UK£8.29
+2.4%
20.9%UK£10.50UK£5.50UK£7.676
Oct ’24UK£8.09
UK£8.40
+3.8%
22.4%UK£10.50UK£5.50UK£8.205
Sep ’24UK£8.07
UK£8.40
+4.2%
22.4%UK£10.50UK£5.50UK£8.635
Aug ’24UK£8.09
UK£8.40
+3.8%
22.4%UK£10.50UK£5.50UK£8.775
Jul ’24UK£7.00
UK£8.21
+17.3%
20.8%UK£10.50UK£5.50UK£8.796
Jun ’24UK£6.87
UK£8.75
+27.5%
23.6%UK£12.00UK£5.50UK£8.797
May ’24UK£7.66
UK£8.75
+14.3%
23.6%UK£12.00UK£5.50UK£8.037
Apr ’24UK£7.80
UK£8.75
+12.2%
23.6%UK£12.00UK£5.50UK£8.157
Mar ’24UK£8.01
UK£8.75
+9.2%
23.6%UK£12.00UK£5.50UK£8.157
Feb ’24UK£7.87
UK£8.69
+10.5%
24.4%UK£12.00UK£5.50UK£8.007
Jan ’24UK£7.16
UK£8.61
+20.3%
25.7%UK£12.00UK£5.50UK£9.137
Dec ’23UK£8.96
UK£7.20
-19.6%
21.8%UK£10.00UK£5.50UK£8.995
Nov ’23UK£6.58
UK£7.25
+10.3%
24.1%UK£10.00UK£5.50UK£8.104

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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