Inchcape plc

BATS-CHIXE:INCHL Stock Report

Market Cap: UK£3.1b

Inchcape Valuation

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

Below Fair Value: INCHL (£7.79) is trading below our estimate of fair value (£21.02)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for INCHL. This is calculated by dividing INCHL's market cap by their current earnings.
What is INCHL's PE Ratio?
PE Ratio11.1x
EarningsUK£279.00m
Market CapUK£3.10b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for INCHL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.4x
SUP Supreme
8.2x-1.2%UK£183.7m
SNWS Smiths News
6.2x-0.7%UK£146.2m
ULTP Ultimate Products
9.8x10.8%UK£103.3m
LIKE Likewise Group
41.2x48.5%UK£41.4m
INCHL Inchcape
11.1x9.6%UK£3.1b

Price-To-Earnings vs Peers: INCHL is good value based on its Price-To-Earnings Ratio (11.1x) compared to the peer average (16.4x).

Price to Earnings Ratio vs Industry

How does INCHL's PE Ratio compare vs other companies in the European Retail Distributors Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies6PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: INCHL is good value based on its Price-To-Earnings Ratio (11.1x) compared to the European Retail Distributors industry average (13.5x).

Price to Earnings Ratio vs Fair Ratio

What is INCHL'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.

INCHL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.1x
Fair PE Ratio16.1x

Price-To-Earnings vs Fair Ratio: INCHL is good value based on its Price-To-Earnings Ratio (11.1x) compared to the estimated Fair Price-To-Earnings Ratio (16.1x).

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 INCHL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£7.79
UK£10.42
+33.8%
6.9%UK£11.21UK£9.00n/a9
Nov ’25UK£7.34
UK£10.42
+42.0%
6.9%UK£11.21UK£9.00n/a9
Oct ’25UK£7.89
UK£11.01
+39.6%
6.1%UK£12.20UK£10.00n/a10
Sep ’25UK£8.54
UK£11.03
+29.2%
5.9%UK£12.20UK£10.00n/a10
Aug ’25UK£8.63
UK£10.88
+26.0%
7.0%UK£12.20UK£9.50n/a10
Jul ’25UK£7.45
UK£10.87
+46.0%
7.0%UK£12.20UK£9.50n/a10
Jun ’25UK£7.98
UK£10.87
+36.2%
7.0%UK£12.20UK£9.50n/a10
May ’25UK£7.98
UK£10.87
+36.2%
7.0%UK£12.20UK£9.50n/a10
Apr ’25UK£7.25
UK£10.88
+50.0%
7.4%UK£12.20UK£9.30n/a10
Mar ’25UK£6.87
UK£11.21
+63.2%
8.7%UK£12.70UK£9.20n/a10
Feb ’25UK£6.80
UK£11.21
+64.8%
8.7%UK£12.70UK£9.20n/a10
Jan ’25UK£7.19
UK£11.46
+59.4%
9.4%UK£13.00UK£9.20n/a10
Dec ’24UK£6.43
UK£11.71
+82.1%
6.9%UK£13.00UK£10.69n/a9
Nov ’24UK£6.53
UK£11.71
+79.3%
6.9%UK£13.00UK£10.69UK£7.349
Oct ’24UK£7.63
UK£11.98
+57.0%
7.1%UK£13.00UK£10.85UK£7.899
Sep ’24UK£7.69
UK£11.85
+54.2%
6.8%UK£13.00UK£10.85UK£8.548
Aug ’24UK£8.08
UK£11.85
+46.8%
6.8%UK£13.00UK£10.85UK£8.638
Jul ’24UK£7.81
UK£11.81
+51.2%
7.1%UK£13.00UK£10.85UK£7.458
Jun ’24UK£7.79
UK£11.81
+51.7%
7.1%UK£13.00UK£10.85UK£7.988
May ’24UK£8.08
UK£11.76
+45.6%
7.8%UK£13.00UK£10.50UK£7.988
Apr ’24UK£7.83
UK£11.75
+50.1%
7.8%UK£13.00UK£10.50UK£7.258
Mar ’24UK£9.09
UK£11.76
+29.3%
7.7%UK£13.00UK£10.50UK£6.878
Feb ’24UK£9.14
UK£11.54
+26.3%
8.7%UK£13.00UK£10.50UK£6.807
Jan ’24UK£8.21
UK£9.96
+21.3%
4.9%UK£10.50UK£9.10UK£7.195
Dec ’23UK£8.46
UK£9.96
+17.7%
4.9%UK£10.50UK£9.10UK£6.435
Nov ’23UK£7.67
UK£9.96
+29.9%
4.9%UK£10.50UK£9.10UK£6.535

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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