Five Below, Inc.

LSE:0IPD Stock Report

Market Cap: US$5.2b

Five Below Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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.

Discounted Cash Flow
Simply Wall St
US$194.48
Fair Value
51.9% undervalued intrinsic discount
20
Number of Analysts

Below Fair Value: 0IPD ($93.49) is trading below our estimate of fair value ($194.48)

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 Ratio19.4x
EarningsUS$268.35m
Market CapUS$5.21b

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 Average18.5x
JD. JD Sports Fashion
12.3x23.2%UK£4.4b
FRAS Frasers Group
8.7x13.2%UK£2.7b
WOSG Watches of Switzerland Group
30.6x27.4%UK£1.3b
SMWH WH Smith
22.3x16.2%UK£1.6b
0IPD Five Below
19.4x7.8%US$5.2b

Price-To-Earnings vs Peers: 0IPD is expensive based on its Price-To-Earnings Ratio (19.4x) compared to the peer average (18.5x).

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
1xn/aUS$17.03m
No more companies available in this PE range
0IPD 19.4xIndustry Avg. 17.3xNo. of Companies4PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0IPD is expensive based on its Price-To-Earnings Ratio (19.4x) compared to the European Specialty Retail industry average (17.3x).

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 Ratio19.4x
Fair PE Ratio20.8x

Price-To-Earnings vs Fair Ratio: 0IPD is good value based on its Price-To-Earnings Ratio (19.4x) compared to the estimated Fair Price-To-Earnings Ratio (20.8x).

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$93.49
US$120.60
+29.0%
13.6%US$150.00US$88.00n/a20
Feb ’26US$94.09
US$122.20
+29.9%
13.3%US$150.00US$88.00n/a20
Jan ’26US$104.30
US$122.80
+17.7%
13.3%US$150.00US$88.00n/a20
Dec ’25US$93.08
US$99.40
+6.8%
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$190.00US$94.0921
Jan ’25US$213.35
US$220.25
+3.2%
5.3%US$240.00US$190.00US$104.3020
Dec ’24US$199.52
US$219.50
+10.0%
5.1%US$240.00US$190.00US$93.0820
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
Analyst Price Target
Consensus Narrative from 20 Analysts
US$119.10
Fair Value
21.5% undervalued intrinsic discount
20
Number of Analysts

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/19 17:24
End of Day Share Price 2025/02/18 00:00
Earnings2024/11/02
Annual Earnings2024/02/03

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Five Below, Inc. is covered by 45 analysts. 21 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ishan MajumdarBaptista Research
Meredith AdlerBarclays
Seth SigmanBarclays