Kingfisher plc

BATS-CHIXE:KGFL Stock Report

Market Cap: UK£4.5b

Kingfisher Valuation

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

Below Fair Value: KGFL (£2.5) is trading below our estimate of fair value (£3.34)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for KGFL. This is calculated by dividing KGFL's market cap by their current earnings.
What is KGFL's PE Ratio?
PE Ratio13x
EarningsUK£345.00m
Market CapUK£4.50b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for KGFL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.6x
WIX Wickes Group
11.6x12.6%UK£355.8m
VIC Victorian Plumbing Group
31x36.2%UK£374.6m
JD. JD Sports Fashion
15.7x23.2%UK£5.4b
FRAS Frasers Group
8.1x9.3%UK£3.2b
KGFL Kingfisher
13x10.4%UK£4.5b

Price-To-Earnings vs Peers: KGFL is good value based on its Price-To-Earnings Ratio (13x) compared to the peer average (16.6x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
WRKS TheWorks.co.uk
2xn/aUS$16.26m
No more companies available in this PE range
No. of Companies4PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: KGFL is good value based on its Price-To-Earnings Ratio (13x) compared to the UK Specialty Retail industry average (15.4x).

Price to Earnings Ratio vs Fair Ratio

What is KGFL'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.

KGFL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13x
Fair PE Ratio17.4x

Price-To-Earnings vs Fair Ratio: KGFL is good value based on its Price-To-Earnings Ratio (13x) compared to the estimated Fair Price-To-Earnings Ratio (17.4x).

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 KGFL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£2.50
UK£2.89
+15.5%
15.0%UK£3.87UK£2.35n/a13
Nov ’25UK£2.96
UK£3.12
+5.5%
12.9%UK£3.87UK£2.44n/a14
Oct ’25UK£3.17
UK£3.02
-4.6%
10.7%UK£3.50UK£2.44n/a13
Sep ’25UK£2.84
UK£2.60
-8.3%
14.9%UK£3.10UK£1.80n/a14
Aug ’25UK£2.81
UK£2.60
-7.4%
14.9%UK£3.10UK£1.80n/a14
Jul ’25UK£2.51
UK£2.53
+0.5%
15.4%UK£3.05UK£1.80n/a14
Jun ’25UK£2.64
UK£2.53
-4.1%
15.4%UK£3.05UK£1.80n/a14
May ’25UK£2.49
UK£2.42
-2.7%
16.4%UK£3.05UK£1.80n/a15
Apr ’25UK£2.50
UK£2.33
-6.5%
15.8%UK£3.00UK£1.80n/a16
Mar ’25UK£2.33
UK£2.29
-1.4%
14.4%UK£3.00UK£1.80n/a16
Feb ’25UK£2.16
UK£2.35
+8.8%
16.6%UK£3.30UK£1.90n/a17
Jan ’25UK£2.44
UK£2.32
-4.9%
17.2%UK£3.30UK£1.80n/a18
Dec ’24UK£2.26
UK£2.32
+2.8%
17.2%UK£3.30UK£1.80n/a18
Nov ’24UK£2.12
UK£2.35
+11.3%
19.1%UK£3.30UK£1.75UK£2.9617
Oct ’24UK£2.24
UK£2.36
+5.4%
18.9%UK£3.30UK£1.75UK£3.1718
Sep ’24UK£2.33
UK£2.61
+12.2%
18.4%UK£3.50UK£1.75UK£2.8418
Aug ’24UK£2.46
UK£2.61
+6.1%
18.7%UK£3.50UK£1.65UK£2.8118
Jul ’24UK£2.33
UK£2.62
+12.9%
18.8%UK£3.50UK£1.65UK£2.5118
Jun ’24UK£2.35
UK£2.62
+11.7%
18.9%UK£3.50UK£1.65UK£2.6418
May ’24UK£2.57
UK£2.62
+1.8%
19.2%UK£3.50UK£1.65UK£2.4919
Apr ’24UK£2.61
UK£2.62
+0.3%
19.1%UK£3.50UK£1.65UK£2.5019
Mar ’24UK£2.82
UK£2.47
-12.5%
17.3%UK£3.30UK£1.65UK£2.3318
Feb ’24UK£2.79
UK£2.39
-14.2%
17.7%UK£3.30UK£1.50UK£2.1618
Jan ’24UK£2.37
UK£2.39
+0.6%
17.3%UK£3.30UK£1.50UK£2.4418
Dec ’23UK£2.46
UK£2.39
-3.0%
17.3%UK£3.30UK£1.50UK£2.2618
Nov ’23UK£2.23
UK£2.45
+10.0%
18.1%UK£3.30UK£1.50UK£2.1218

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

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