JD Sports Fashion Plc

LSE:JD. Stock Report

Market Cap: UK£6.0b

JD Sports Fashion Valuation

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

Below Fair Value: JD. (£1.16) is trading below our estimate of fair value (£3.3)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for JD.. This is calculated by dividing JD.'s market cap by their current earnings.
What is JD.'s PE Ratio?
PE Ratio17.6x
EarningsUK£342.20m
Market CapUK£6.01b

Price to Earnings Ratio vs Peers

How does JD.'s PE Ratio compare to its peers?

The above table shows the PE ratio for JD. vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.7x
FRAS Frasers Group
8.3x9.3%UK£3.2b
PETS Pets at Home Group
16.4x14.3%UK£1.3b
SMWH WH Smith
24.3x24.1%UK£1.6b
WOSG Watches of Switzerland Group
17.7x19.6%UK£1.0b
JD. JD Sports Fashion
17.6x24.5%UK£6.0b

Price-To-Earnings vs Peers: JD. is expensive based on its Price-To-Earnings Ratio (17.6x) compared to the peer average (16.7x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
WRKS TheWorks.co.uk
2.3xn/aUS$18.63m
No more companies available in this PE range
JD. 17.6xIndustry Avg. 17.0xNo. of Companies3PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: JD. is expensive based on its Price-To-Earnings Ratio (17.6x) compared to the UK Specialty Retail industry average (17x).

Price to Earnings Ratio vs Fair Ratio

What is JD.'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.

JD. PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.6x
Fair PE Ratio26x

Price-To-Earnings vs Fair Ratio: JD. is good value based on its Price-To-Earnings Ratio (17.6x) compared to the estimated Fair Price-To-Earnings Ratio (26x).

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 JD. forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.16
UK£1.73
+49.0%
22.3%UK£2.50UK£1.10n/a14
Nov ’25UK£1.24
UK£1.73
+39.8%
22.3%UK£2.50UK£1.10n/a14
Oct ’25UK£1.50
UK£1.69
+13.2%
22.6%UK£2.50UK£1.10n/a14
Sep ’25UK£1.38
UK£1.67
+20.9%
22.3%UK£2.50UK£1.10n/a15
Aug ’25UK£1.32
UK£1.63
+23.4%
20.7%UK£2.50UK£1.10n/a15
Jul ’25UK£1.19
UK£1.68
+40.7%
19.5%UK£2.50UK£1.15n/a14
Jun ’25UK£1.28
UK£1.69
+32.4%
19.4%UK£2.50UK£1.15n/a14
May ’25UK£1.12
UK£1.69
+50.5%
19.4%UK£2.50UK£1.15n/a14
Apr ’25UK£1.35
UK£1.66
+23.1%
19.8%UK£2.50UK£1.15n/a13
Mar ’25UK£1.20
UK£1.78
+48.4%
20.7%UK£2.50UK£1.15n/a13
Feb ’25UK£1.15
UK£1.82
+57.9%
21.5%UK£2.50UK£1.15n/a13
Jan ’25UK£1.66
UK£2.16
+30.0%
18.3%UK£3.00UK£1.30n/a13
Dec ’24UK£1.60
UK£2.15
+34.0%
18.7%UK£3.00UK£1.30n/a13
Nov ’24UK£1.27
UK£2.14
+69.4%
19.4%UK£3.00UK£1.30UK£1.2412
Oct ’24UK£1.50
UK£2.14
+43.3%
18.5%UK£3.00UK£1.30UK£1.5013
Sep ’24UK£1.44
UK£2.18
+51.6%
18.3%UK£3.00UK£1.30UK£1.3814
Aug ’24UK£1.53
UK£2.25
+47.0%
14.5%UK£3.00UK£1.70UK£1.3213
Jul ’24UK£1.46
UK£2.26
+55.1%
13.9%UK£3.00UK£1.70UK£1.1913
Jun ’24UK£1.52
UK£2.28
+49.8%
14.1%UK£3.00UK£1.70UK£1.2812
May ’24UK£1.61
UK£2.28
+41.4%
14.8%UK£3.00UK£1.70UK£1.1211
Apr ’24UK£1.78
UK£2.28
+28.1%
14.8%UK£3.00UK£1.70UK£1.3511
Mar ’24UK£1.80
UK£2.27
+26.1%
14.3%UK£3.00UK£1.70UK£1.2012
Feb ’24UK£1.63
UK£2.09
+27.8%
16.0%UK£3.00UK£1.70UK£1.1512
Jan ’24UK£1.26
UK£1.93
+52.7%
22.6%UK£3.00UK£1.31UK£1.6612
Dec ’23UK£1.28
UK£1.93
+50.5%
22.6%UK£3.00UK£1.31UK£1.6012
Nov ’23UK£1.00
UK£1.93
+92.2%
22.6%UK£3.00UK£1.31UK£1.2712

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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