NEXT plc

LSE:NXT Stock Report

Market Cap: UK£11.0b

NEXT Valuation

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

Below Fair Value: NXT (£90.98) is trading below our estimate of fair value (£97.12)

Significantly Below Fair Value: NXT is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

NXT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.3x
Enterprise Value/EBITDA11.9x
PEG Ratio8.3x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for NXT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.3x
BME B&M European Value Retail
14.7x8.5%UK£5.2b
JD. JD Sports Fashion
30.3x19.7%UK£6.0b
KGF Kingfisher
13.4x11.5%UK£4.6b
FRAS Frasers Group
6.6x-9.1%UK£3.5b
NXT NEXT
13.7x1.6%UK£11.0b

Price-To-Earnings vs Peers: NXT is good value based on its Price-To-Earnings Ratio (13.7x) compared to the peer average (16.3x).

Price to Earnings Ratio vs Industry

How does NXT's PE Ratio compare vs other companies in the Global Multiline Retail Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-5.9%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-5.9%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: NXT is good value based on its Price-To-Earnings Ratio (13.7x) compared to the Global Multiline Retail industry average (21.8x).

Price to Earnings Ratio vs Fair Ratio

What is NXT'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.

NXT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.7x
Fair PE Ratio14.7x

Price-To-Earnings vs Fair Ratio: NXT is good value based on its Price-To-Earnings Ratio (13.7x) compared to the estimated Fair Price-To-Earnings Ratio (14.7x).

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 NXT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£90.98
UK£91.71
+0.8%
9.8%UK£107.00UK£65.00n/a19
Apr ’25UK£92.32
UK£86.65
-6.1%
11.6%UK£107.00UK£65.00n/a19
Mar ’25UK£84.10
UK£84.44
+0.4%
11.1%UK£100.00UK£65.00n/a20
Feb ’25UK£83.02
UK£84.44
+1.7%
11.1%UK£100.00UK£65.00n/a20
Jan ’25UK£81.18
UK£77.78
-4.2%
8.8%UK£89.70UK£60.00n/a20
Dec ’24UK£80.42
UK£77.35
-3.8%
8.7%UK£89.70UK£60.00n/a20
Nov ’24UK£71.32
UK£76.56
+7.3%
9.1%UK£89.70UK£60.00n/a20
Oct ’24UK£72.96
UK£75.19
+3.0%
9.8%UK£89.70UK£57.00n/a21
Sep ’24UK£70.28
UK£72.97
+3.8%
9.5%UK£89.70UK£57.00n/a22
Aug ’24UK£69.62
UK£71.69
+3.0%
10.4%UK£88.00UK£55.79n/a23
Jul ’24UK£69.00
UK£71.30
+3.3%
10.1%UK£88.00UK£55.79n/a23
Jun ’24UK£64.04
UK£68.66
+7.2%
10.0%UK£81.40UK£54.00n/a21
May ’24UK£67.40
UK£68.66
+1.9%
10.0%UK£81.40UK£54.00UK£90.6421
Apr ’24UK£65.72
UK£68.55
+4.3%
10.5%UK£81.40UK£54.00UK£92.3221
Mar ’24UK£68.90
UK£67.38
-2.2%
11.8%UK£79.00UK£48.50UK£84.1022
Feb ’24UK£66.42
UK£65.68
-1.1%
10.5%UK£75.00UK£48.50UK£83.0222
Jan ’24UK£58.06
UK£61.38
+5.7%
10.1%UK£75.00UK£48.50UK£81.1822
Dec ’23UK£58.14
UK£61.27
+5.4%
10.7%UK£75.00UK£48.50UK£80.4222
Nov ’23UK£49.63
UK£62.06
+25.0%
12.3%UK£81.00UK£48.50UK£71.3221
Oct ’23UK£48.01
UK£68.41
+42.5%
13.6%UK£93.50UK£51.00UK£72.9620
Sep ’23UK£57.62
UK£72.95
+26.6%
12.3%UK£98.25UK£62.00UK£70.2820
Aug ’23UK£67.70
UK£73.23
+8.2%
12.4%UK£96.80UK£62.00UK£69.6220
Jul ’23UK£59.84
UK£74.61
+24.7%
12.2%UK£96.80UK£63.50UK£69.0020
Jun ’23UK£64.62
UK£74.91
+15.9%
12.4%UK£96.80UK£63.50UK£64.0420
May ’23UK£60.26
UK£76.88
+27.6%
13.1%UK£96.80UK£63.50UK£67.4020

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

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