Watches of Switzerland Group plc

LSE:WOSG Stock Report

Market Cap: UK£859.1m

Watches of Switzerland Group Valuation

Is WOSG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: WOSG (£3.59) is trading below our estimate of fair value (£9.74)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

WOSG 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/Revenue0.8x
Enterprise Value/EBITDA6.4x
PEG Ratio2.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for WOSG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.9x
PETS Pets at Home Group
15x14.8%UK£1.2b
SMWH WH Smith
21.7x18.3%UK£1.7b
MOON Moonpig Group
16.7x10.8%UK£581.2m
CARD Card Factory
6.2x-1.3%UK£319.3m
WOSG Watches of Switzerland Group
8.2x3.2%UK£859.1m

Price-To-Earnings vs Peers: WOSG is good value based on its Price-To-Earnings Ratio (8.2x) compared to the peer average (14.9x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: WOSG is good value based on its Price-To-Earnings Ratio (8.2x) compared to the UK Specialty Retail industry average (14.8x).


Price to Earnings Ratio vs Fair Ratio

What is WOSG'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.

WOSG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.2x
Fair PE Ratio13.1x

Price-To-Earnings vs Fair Ratio: WOSG is good value based on its Price-To-Earnings Ratio (8.2x) compared to the estimated Fair Price-To-Earnings Ratio (13.1x).


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 WOSG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£3.59
UK£4.84
+34.8%
14.1%UK£5.80UK£3.70n/a10
Mar ’25UK£4.14
UK£4.78
+15.3%
14.2%UK£5.80UK£3.70n/a11
Feb ’25UK£3.77
UK£5.95
+58.1%
33.3%UK£10.35UK£4.00n/a11
Jan ’25UK£7.09
UK£7.99
+12.8%
17.1%UK£10.35UK£5.50n/a11
Dec ’24UK£6.60
UK£7.89
+19.6%
17.0%UK£10.35UK£5.50n/a11
Nov ’24UK£5.02
UK£7.49
+49.2%
19.6%UK£10.60UK£5.50n/a11
Oct ’24UK£5.35
UK£7.95
+48.7%
17.3%UK£10.60UK£6.00n/a11
Sep ’24UK£5.90
UK£8.87
+50.5%
19.7%UK£12.25UK£6.00n/a11
Aug ’24UK£7.21
UK£9.47
+31.4%
15.3%UK£12.25UK£7.00n/a11
Jul ’24UK£6.11
UK£10.12
+65.7%
13.4%UK£12.70UK£8.45n/a11
Jun ’24UK£6.65
UK£10.12
+52.2%
13.4%UK£12.70UK£8.45n/a11
May ’24UK£8.32
UK£11.65
+40.0%
12.3%UK£14.00UK£9.45n/a10
Apr ’24UK£8.16
UK£11.81
+44.8%
11.4%UK£14.00UK£9.45n/a10
Mar ’24UK£8.11
UK£11.96
+47.6%
10.1%UK£14.00UK£9.95UK£4.149
Feb ’24UK£9.56
UK£12.14
+27.0%
11.7%UK£15.00UK£10.20UK£3.7710
Jan ’24UK£8.21
UK£12.25
+49.3%
11.5%UK£15.00UK£10.20UK£7.0910
Dec ’23UK£10.37
UK£12.28
+18.4%
11.2%UK£15.00UK£10.45UK£6.6010
Nov ’23UK£8.14
UK£12.34
+51.7%
11.6%UK£15.00UK£10.10UK£5.029
Oct ’23UK£6.74
UK£13.37
+98.3%
12.9%UK£17.00UK£11.00UK£5.359
Sep ’23UK£7.37
UK£13.37
+81.4%
12.9%UK£17.00UK£11.00UK£5.909
Aug ’23UK£8.82
UK£13.51
+53.2%
11.6%UK£17.00UK£11.80UK£7.219
Jul ’23UK£7.74
UK£15.23
+96.8%
8.6%UK£17.10UK£13.30UK£6.118
Jun ’23UK£9.44
UK£15.23
+61.4%
8.6%UK£17.10UK£13.30UK£6.658
May ’23UK£10.21
UK£15.27
+49.5%
9.6%UK£17.10UK£12.65UK£8.328
Apr ’23UK£11.41
UK£15.27
+33.8%
9.6%UK£17.10UK£12.65UK£8.168
Mar ’23UK£11.56
UK£16.47
+42.5%
12.2%UK£20.00UK£12.65UK£8.117

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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