Lookers Valuation

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

Below Fair Value: LOOK (£1.3) is trading below our estimate of fair value (£1.79)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LOOK. This is calculated by dividing LOOK's market cap by their current earnings.
What is LOOK's PE Ratio?
PE Ratio7.9x
EarningsUK£63.90m
Market CapUK£503.23m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LOOK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.5x
HFD Halfords Group
9.9x13.9%UK£287.2m
VTU Vertu Motors
10.4xn/aUK£199.5m
VIC Victorian Plumbing Group
29.9x36.2%UK£361.5m
WIX Wickes Group
11.8x12.6%UK£362.1m
LOOK Lookers
7.9x-1.8%UK£503.2m

Price-To-Earnings vs Peers: LOOK is good value based on its Price-To-Earnings Ratio (7.9x) compared to the peer average (9.2x).


Price to Earnings Ratio vs Industry

How does LOOK'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$17.62m
No more companies available in this PE range
LOOK 7.9xIndustry Avg. 16.2xNo. of Companies6PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LOOK is good value based on its Price-To-Earnings Ratio (7.9x) compared to the UK Specialty Retail industry average (15.2x).


Price to Earnings Ratio vs Fair Ratio

What is LOOK'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.

LOOK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.9x
Fair PE Ratio10x

Price-To-Earnings vs Fair Ratio: LOOK is good value based on its Price-To-Earnings Ratio (7.9x) compared to the estimated Fair Price-To-Earnings Ratio (10x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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