DFS Furniture plc

LSE:DFS Stock Report

Market Cap: UK£297.6m

DFS Furniture Valuation

Is DFS 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DFS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DFS (£1.33) is trading below our estimate of fair value (£1.8)

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

Key Valuation Metric

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

Key metric: As DFS is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for DFS. This is calculated by dividing DFS's market cap by their current revenue.
What is DFS's PS Ratio?
PS Ratio0.3x
SalesUK£987.10m
Market CapUK£297.59m

Price to Sales Ratio vs Peers

How does DFS's PS Ratio compare to its peers?

The above table shows the PS ratio for DFS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.6x
SCS ScS Group
0.3x6.3%UK£95.6m
PROC ProCook Group
0.6x9.4%UK£36.6m
DNLM Dunelm Group
1.3x4.6%UK£2.3b
WIX Wickes Group
0.2x3.7%UK£358.7m
DFS DFS Furniture
0.3x4.4%UK£297.6m

Price-To-Sales vs Peers: DFS is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (0.6x).

Price to Sales Ratio vs Industry

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

9 CompaniesPrice / SalesEstimated GrowthMarket Cap
CURY Currys
0.1x1.0%US$1.07b
VTU Vertu Motors
0.04x5.8%US$245.47m
MOTR Motorpoint Group
0.1x6.3%US$133.75m
WRKS TheWorks.co.uk
0.05xn/aUS$17.93m
DFS 0.3xIndustry Avg. 0.3xNo. of Companies9PS00.40.81.21.62+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: DFS is good value based on its Price-To-Sales Ratio (0.3x) compared to the UK Specialty Retail industry average (0.3x).

Price to Sales Ratio vs Fair Ratio

What is DFS's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DFS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ratio0.6x

Price-To-Sales vs Fair Ratio: DFS is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (0.6x).

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 DFS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.33
UK£1.48
+11.1%
21.1%UK£2.00UK£1.20n/a4
Nov ’25UK£1.34
UK£1.48
+10.1%
21.1%UK£2.00UK£1.20n/a4
Oct ’25UK£1.23
UK£1.48
+20.3%
21.1%UK£2.00UK£1.20n/a4
Sep ’25UK£1.25
UK£1.41
+13.0%
25.3%UK£2.00UK£1.10n/a4
Aug ’25UK£1.20
UK£1.41
+17.5%
25.3%UK£2.00UK£1.10n/a4
Jul ’25UK£1.10
UK£1.41
+28.4%
25.3%UK£2.00UK£1.10n/a4
Jun ’25UK£1.12
UK£1.52
+35.5%
20.1%UK£2.00UK£1.20n/a5
May ’25UK£1.16
UK£1.52
+31.0%
20.1%UK£2.00UK£1.20n/a5
Apr ’25UK£1.11
UK£1.52
+37.4%
20.1%UK£2.00UK£1.20n/a5
Mar ’25UK£1.23
UK£1.65
+33.7%
16.7%UK£2.00UK£1.20n/a5
Feb ’25UK£1.15
UK£1.65
+44.0%
16.7%UK£2.00UK£1.20n/a5
Jan ’25UK£1.22
UK£1.66
+36.5%
16.8%UK£2.00UK£1.21n/a5
Dec ’24UK£1.08
UK£1.59
+46.8%
19.4%UK£2.00UK£1.20n/a6
Nov ’24UK£1.03
UK£1.59
+53.9%
19.4%UK£2.00UK£1.20UK£1.346
Oct ’24UK£1.08
UK£1.59
+46.2%
19.4%UK£2.00UK£1.20UK£1.236
Sep ’24UK£1.11
UK£1.61
+45.2%
20.7%UK£2.00UK£1.20UK£1.256
Aug ’24UK£1.15
UK£1.66
+44.2%
17.4%UK£2.00UK£1.25UK£1.206
Jul ’24UK£1.08
UK£1.78
+65.1%
15.2%UK£2.10UK£1.35UK£1.106
Jun ’24UK£1.20
UK£1.86
+55.4%
17.4%UK£2.25UK£1.35UK£1.126
May ’24UK£1.26
UK£1.86
+47.5%
17.4%UK£2.25UK£1.35UK£1.166
Apr ’24UK£1.36
UK£1.86
+36.4%
17.4%UK£2.25UK£1.35UK£1.116
Mar ’24UK£1.51
UK£1.81
+19.6%
22.8%UK£2.25UK£1.04UK£1.236
Feb ’24UK£1.48
UK£1.78
+20.1%
24.4%UK£2.25UK£1.04UK£1.156
Jan ’24UK£1.55
UK£1.96
+26.6%
27.8%UK£2.80UK£1.04UK£1.227
Dec ’23UK£1.53
UK£1.95
+27.6%
28.8%UK£2.80UK£0.97UK£1.087
Nov ’23UK£1.25
UK£1.90
+51.4%
33.6%UK£2.80UK£0.95UK£1.037

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

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