Smiths News plc

LSE:SNWS Stock Report

Market Cap: UK£147.4m

Smiths News Valuation

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

Below Fair Value: SNWS (£0.62) is trading below our estimate of fair value (£2.23)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SNWS. This is calculated by dividing SNWS's market cap by their current earnings.
What is SNWS's PE Ratio?
PE Ratio5.8x
EarningsUK£25.50m
Market CapUK£147.37m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SNWS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.4x
ULTP Ultimate Products
10.2x10.8%UK£107.1m
SUP Supreme
8.6x-1.2%UK£192.4m
LIKE Likewise Group
40x48.5%UK£40.2m
INCH Inchcape
10.9x9.6%UK£3.1b
SNWS Smiths News
5.8x-2.7%UK£147.4m

Price-To-Earnings vs Peers: SNWS is good value based on its Price-To-Earnings Ratio (5.8x) compared to the peer average (17.4x).

Price to Earnings Ratio vs Industry

How does SNWS's PE Ratio compare vs other companies in the European Retail Distributors Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SNWS 5.8xIndustry Avg. 13.7xNo. of Companies4PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SNWS is good value based on its Price-To-Earnings Ratio (5.8x) compared to the European Retail Distributors industry average (13.1x).

Price to Earnings Ratio vs Fair Ratio

What is SNWS'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.

SNWS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.8x
Fair PE Ratio9.3x

Price-To-Earnings vs Fair Ratio: SNWS is good value based on its Price-To-Earnings Ratio (5.8x) compared to the estimated Fair Price-To-Earnings Ratio (9.3x).

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 SNWS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.61
UK£0.82
+34.1%
15.2%UK£0.95UK£0.70n/a2
Nov ’25UK£0.57
UK£0.82
+44.7%
15.2%UK£0.95UK£0.70n/a2
Oct ’25UK£0.57
UK£0.82
+44.2%
15.2%UK£0.95UK£0.70n/a2
Sep ’25UK£0.57
UK£0.80
+39.9%
18.7%UK£0.95UK£0.65n/a2
Aug ’25UK£0.61
UK£0.80
+32.0%
18.7%UK£0.95UK£0.65n/a2
Jul ’25UK£0.58
UK£0.80
+37.9%
18.7%UK£0.95UK£0.65n/a2
Jun ’25UK£0.61
UK£0.83
+36.6%
15.7%UK£0.95UK£0.65n/a3
May ’25UK£0.53
UK£0.72
+35.8%
17.2%UK£0.85UK£0.60n/a2
Apr ’25UK£0.48
UK£0.72
+51.2%
17.2%UK£0.85UK£0.60n/a2
Mar ’25UK£0.48
UK£0.72
+51.0%
17.2%UK£0.85UK£0.60n/a2
Dec ’24UK£0.48
UK£0.74
+56.2%
19.5%UK£0.89UK£0.60n/a2
Nov ’24UK£0.48
UK£0.74
+55.9%
19.5%UK£0.89UK£0.60UK£0.572
Oct ’24UK£0.41
UK£0.74
+81.7%
19.5%UK£0.89UK£0.60UK£0.572
Sep ’24UK£0.42
UK£0.74
+76.5%
19.5%UK£0.89UK£0.60UK£0.572
Aug ’24UK£0.44
UK£0.74
+69.3%
19.5%UK£0.89UK£0.60UK£0.612
Jul ’24UK£0.47
UK£0.74
+59.2%
19.5%UK£0.89UK£0.60UK£0.582
Jun ’24UK£0.53
UK£0.74
+40.6%
19.5%UK£0.89UK£0.60UK£0.612
Jan ’24UK£0.47
UK£0.51
+9.1%
2.0%UK£0.52UK£0.50UK£0.532
Dec ’23UK£0.40
UK£0.51
+26.2%
2.0%UK£0.52UK£0.50UK£0.482
Nov ’23UK£0.37
UK£0.51
+38.6%
2.0%UK£0.52UK£0.50UK£0.482

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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