NEXT plc

LSE:NXT Stock Report

Market Cap: UK£11.2b

NEXT Valuation

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

Below Fair Value: NXT (£95) is trading below our estimate of fair value (£115.93)

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?

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

The above table shows the Price to Earnings ratio for NXT. This is calculated by dividing NXT's market cap by their current earnings.
What is NXT's PE Ratio?
PE Ratio13.9x
EarningsUK£803.40m
Market CapUK£11.19b

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 Average11.6x
BME B&M European Value Retail
11.1x10.7%UK£3.6b
JD. JD Sports Fashion
14.1x23.2%UK£4.8b
KGF Kingfisher
12.8x9.5%UK£4.4b
FRAS Frasers Group
8.5x13.2%UK£2.6b
NXT NEXT
13.9x2.6%UK£11.2b

Price-To-Earnings vs Peers: NXT is expensive based on its Price-To-Earnings Ratio (13.9x) compared to the peer average (11.6x).

Price to Earnings Ratio vs Industry

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

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
NXT 13.9xIndustry Avg. 22.7xNo. of Companies22PE01632486480+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: NXT is good value based on its Price-To-Earnings Ratio (13.9x) compared to the Global Multiline Retail industry average (23.1x).

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 Ratio13.9x
Fair PE Ratio16.6x

Price-To-Earnings vs Fair Ratio: NXT is good value based on its Price-To-Earnings Ratio (13.9x) compared to the estimated Fair Price-To-Earnings Ratio (16.6x).

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 NXT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£95.00
UK£102.64
+8.0%
12.3%UK£126.00UK£60.00n/a19
Dec ’25UK£100.80
UK£102.46
+1.6%
12.5%UK£126.00UK£60.00n/a19
Nov ’25UK£99.14
UK£100.98
+1.9%
11.7%UK£118.00UK£60.00n/a18
Oct ’25UK£99.10
UK£98.61
-0.5%
12.7%UK£118.00UK£60.00n/a17
Sep ’25UK£101.65
UK£95.73
-5.8%
11.3%UK£114.00UK£60.00n/a18
Aug ’25UK£98.30
UK£92.38
-6.0%
11.4%UK£110.00UK£60.00n/a17
Jul ’25UK£91.20
UK£92.42
+1.3%
10.2%UK£107.00UK£65.00n/a17
Jun ’25UK£93.38
UK£91.81
-1.7%
9.8%UK£107.00UK£65.00n/a19
May ’25UK£90.64
UK£91.71
+1.2%
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£60.00UK£100.8020
Nov ’24UK£71.32
UK£76.56
+7.3%
9.1%UK£89.70UK£60.00UK£99.1420
Oct ’24UK£72.96
UK£75.19
+3.0%
9.8%UK£89.70UK£57.00UK£99.1021
Sep ’24UK£70.28
UK£72.97
+3.8%
9.5%UK£89.70UK£57.00UK£101.6522
Aug ’24UK£69.62
UK£71.69
+3.0%
10.4%UK£88.00UK£55.79UK£98.3023
Jul ’24UK£69.00
UK£71.30
+3.3%
10.1%UK£88.00UK£55.79UK£91.2023
Jun ’24UK£64.04
UK£68.66
+7.2%
10.0%UK£81.40UK£54.00UK£93.3821
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

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/30 07:33
End of Day Share Price 2024/12/30 00:00
Earnings2024/07/27
Annual Earnings2024/01/27

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 here.

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 .

Analyst Sources

NEXT plc is covered by 49 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Pierre-Yves GauthierAlphaValue
Nicholas BubbArden Partners Plc.
Karen HowlandBarclays