Renishaw Valuation

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

Below Fair Value: RSWL (£32.3) is trading above our estimate of fair value (£21.08)

Significantly Below Fair Value: RSWL is trading above our estimate of fair value.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

RSWL 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/Revenue3.1x
Enterprise Value/EBITDA16.4x
PEG Ratio1.9x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RSWL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.3x
SXS Spectris
9.3x-13.0%UK£2.5b
OXIG Oxford Instruments
24.9x10.5%UK£1.3b
HLMA Halma
35.6x8.3%UK£9.6b
BIG Big Technologies
31.3x26.9%UK£392.4m
RSWL Renishaw
24.4x12.6%UK£2.4b

Price-To-Earnings vs Peers: RSWL is good value based on its Price-To-Earnings Ratio (24.4x) compared to the peer average (25.3x).


Price to Earnings Ratio vs Industry

How does RSWL's PE Ratio compare vs other companies in the European Electronic Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: RSWL is expensive based on its Price-To-Earnings Ratio (24.4x) compared to the European Electronic industry average (18.5x).


Price to Earnings Ratio vs Fair Ratio

What is RSWL'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.

RSWL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.4x
Fair PE Ratio27.3x

Price-To-Earnings vs Fair Ratio: RSWL is good value based on its Price-To-Earnings Ratio (24.4x) compared to the estimated Fair Price-To-Earnings Ratio (27.3x).


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 RSWL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£31.40
UK£39.54
+25.9%
15.0%UK£50.00UK£32.00n/a7
Oct ’25UK£37.55
UK£39.69
+5.7%
14.9%UK£50.00UK£32.00n/a7
Sep ’25UK£35.00
UK£42.80
+22.3%
14.7%UK£50.00UK£32.00n/a7
Aug ’25UK£35.95
UK£42.80
+19.1%
14.7%UK£50.00UK£32.00n/a7
Jul ’25UK£36.70
UK£42.80
+16.6%
14.7%UK£50.00UK£32.00n/a7
Jun ’25UK£39.85
UK£41.33
+3.7%
17.1%UK£50.00UK£31.00n/a8
May ’25UK£41.50
UK£41.50
0%
17.9%UK£50.00UK£31.00n/a8
Apr ’25UK£42.72
UK£39.57
-7.4%
17.4%UK£50.00UK£31.00n/a7
Mar ’25UK£43.26
UK£38.43
-11.2%
16.1%UK£50.00UK£31.00n/a7
Feb ’25UK£35.24
UK£34.23
-2.9%
14.0%UK£40.00UK£29.00n/a7
Jan ’25UK£35.70
UK£34.00
-4.8%
13.8%UK£40.00UK£29.00n/a7
Dec ’24UK£31.48
UK£34.00
+8.0%
13.8%UK£40.00UK£29.00n/a7
Nov ’24UK£30.33
UK£34.50
+13.7%
14.1%UK£40.00UK£29.00n/a6
Oct ’24UK£35.24
UK£36.06
+2.3%
16.6%UK£44.00UK£29.00UK£37.555
Sep ’24UK£35.86
UK£37.64
+5.0%
21.4%UK£50.00UK£29.00UK£35.005
Aug ’24UK£38.62
UK£38.04
-1.5%
20.4%UK£50.00UK£29.00UK£35.955
Jul ’24UK£38.98
UK£39.43
+1.1%
19.6%UK£50.00UK£29.00UK£36.706
Jun ’24UK£40.20
UK£39.43
-1.9%
19.6%UK£50.00UK£29.00UK£39.856
May ’24UK£35.94
UK£39.54
+10.0%
19.4%UK£50.00UK£29.00UK£41.506
Apr ’24UK£41.26
UK£41.39
+0.3%
17.2%UK£50.00UK£29.00UK£42.726
Mar ’24UK£40.52
UK£40.62
+0.2%
16.9%UK£50.00UK£29.00UK£43.267
Feb ’24UK£38.80
UK£40.26
+3.8%
17.4%UK£50.00UK£30.00UK£35.246
Jan ’24UK£36.84
UK£43.27
+17.5%
21.4%UK£58.70UK£32.00UK£35.707
Dec ’23UK£37.44
UK£43.27
+15.6%
21.4%UK£58.70UK£32.00UK£31.487
Nov ’23UK£35.82
UK£43.56
+21.6%
20.5%UK£58.70UK£34.00UK£30.337
Oct ’23UK£35.10
UK£44.21
+25.9%
19.1%UK£58.70UK£34.00UK£35.247

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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