Five Below, Inc.

LSE:0IPD Stock Report

Market Cap: US$4.8b

Five Below Valuation

Is 0IPD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 0IPD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0IPD ($93.89) is trading below our estimate of fair value ($380.51)

Significantly Below Fair Value: 0IPD is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0IPD?

Key metric: As 0IPD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0IPD. This is calculated by dividing 0IPD's market cap by their current earnings.
What is 0IPD's PE Ratio?
PE Ratio17.9x
EarningsUS$281.26m
Market CapUS$4.78b

Price to Earnings Ratio vs Peers

How does 0IPD's PE Ratio compare to its peers?

The above table shows the PE ratio for 0IPD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.1x
JD. JD Sports Fashion
15.6x24.9%UK£5.3b
FRAS Frasers Group
8.4x9.3%UK£3.3b
SMWH WH Smith
24.3x17.4%UK£1.6b
PETS Pets at Home Group
16x14.3%UK£1.3b
0IPD Five Below
17.9x4.4%US$4.8b

Price-To-Earnings vs Peers: 0IPD is expensive based on its Price-To-Earnings Ratio (17.9x) compared to the peer average (16.1x).

Price to Earnings Ratio vs Industry

How does 0IPD's PE Ratio compare vs other companies in the GB Specialty Retail Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
WRKS TheWorks.co.uk
2.2xn/aUS$17.57m
No more companies available in this PE range
0IPD 17.9xIndustry Avg. 16.2xNo. of Companies6PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0IPD is expensive based on its Price-To-Earnings Ratio (17.9x) compared to the UK Specialty Retail industry average (16.2x).

Price to Earnings Ratio vs Fair Ratio

What is 0IPD'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.

0IPD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.9x
Fair PE Ratio18.4x

Price-To-Earnings vs Fair Ratio: 0IPD is good value based on its Price-To-Earnings Ratio (17.9x) compared to the estimated Fair Price-To-Earnings Ratio (18.4x).

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 0IPD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$93.89
US$99.40
+5.9%
14.5%US$125.00US$75.00n/a20
Nov ’25US$95.01
US$100.52
+5.8%
11.9%US$125.00US$79.00n/a21
Oct ’25US$89.52
US$99.19
+10.8%
11.0%US$125.00US$79.00n/a21
Sep ’25US$75.27
US$97.55
+29.6%
12.3%US$125.00US$79.00n/a20
Aug ’25US$70.20
US$104.20
+48.4%
15.8%US$140.00US$79.00n/a20
Jul ’25US$106.95
US$158.20
+47.9%
17.3%US$223.15US$120.00n/a21
Jun ’25US$136.23
US$203.05
+49.1%
10.7%US$245.00US$166.00n/a21
May ’25US$142.74
US$210.32
+47.3%
8.1%US$245.00US$170.00n/a22
Apr ’25US$181.95
US$213.05
+17.1%
6.9%US$245.00US$180.00n/a22
Mar ’25US$201.54
US$221.82
+10.1%
7.5%US$270.00US$190.00n/a21
Feb ’25US$180.48
US$221.34
+22.6%
7.6%US$270.00US$190.00n/a21
Jan ’25US$213.35
US$220.25
+3.2%
5.3%US$240.00US$190.00n/a20
Dec ’24US$199.52
US$219.50
+10.0%
5.1%US$240.00US$190.00n/a20
Nov ’24US$171.80
US$212.80
+23.9%
7.6%US$235.00US$175.00US$95.0120
Oct ’24US$161.97
US$216.55
+33.7%
9.1%US$269.00US$175.00US$89.5220
Sep ’24US$168.69
US$216.00
+28.0%
8.8%US$269.00US$175.00US$75.2721
Aug ’24US$205.86
US$220.68
+7.2%
5.9%US$242.00US$185.00US$70.2022
Jul ’24US$197.17
US$220.23
+11.7%
6.1%US$242.00US$185.00US$106.9522
Jun ’24US$166.91
US$219.96
+31.8%
9.3%US$242.00US$148.00US$136.2323
May ’24US$193.32
US$221.26
+14.5%
9.4%US$242.00US$148.00US$142.7423
Apr ’24US$204.77
US$220.35
+7.6%
9.2%US$240.00US$149.00US$181.9523
Mar ’24US$205.52
US$209.83
+2.1%
10.2%US$240.00US$149.00US$201.5423
Feb ’24US$195.42
US$198.68
+1.7%
9.0%US$235.00US$149.00US$180.4822
Jan ’24US$175.90
US$188.05
+6.9%
11.8%US$215.00US$125.00US$213.3522
Dec ’23US$183.78
US$183.05
-0.4%
12.9%US$215.00US$125.00US$199.5220
Nov ’23US$145.02
US$163.15
+12.5%
11.6%US$205.00US$125.00US$171.8020

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

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