We’ve recently updated our valuation analysis.

Halma Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

HLMA 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/Revenue5.5x
Enterprise Value/EBITDA24.9x
PEG Ratio5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HLMA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average24.4x
RSW Renishaw
25x6.6%UK£3.0b
SXS Spectris
17.4x4.4%UK£3.5b
OXIG Oxford Instruments
33x10.4%UK£1.4b
SDI SDI Group
22.2x-1.5%UK£181.9m
HLMA Halma
38.7x7.7%UK£8.6b

Price-To-Earnings vs Peers: HLMA is expensive based on its Price-To-Earnings Ratio (38.7x) compared to the peer average (24.4x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.3%
n/an/an/a

Price-To-Earnings vs Industry: HLMA is expensive based on its Price-To-Earnings Ratio (38.7x) compared to the European Electronic industry average (23.8x)


Price to Earnings Ratio vs Fair Ratio

What is HLMA'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.

HLMA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio38.7x
Fair PE Ratio23.7x

Price-To-Earnings vs Fair Ratio: HLMA is expensive based on its Price-To-Earnings Ratio (38.7x) compared to the estimated Fair Price-To-Earnings Ratio (23.7x).


Share Price vs Fair Value

What is the Fair Price of HLMA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HLMA (£22.89) is trading above our estimate of fair value (£11.98)

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


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 HLMA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£22.89
UK£22.87
-0.1%
12.9%UK£28.50UK£16.29n/a17
Jan ’24UK£19.74
UK£22.97
+16.4%
13.1%UK£28.50UK£16.29n/a17
Dec ’23UK£22.19
UK£22.98
+3.6%
13.0%UK£28.50UK£16.29n/a17
Nov ’23UK£21.25
UK£23.25
+9.4%
16.5%UK£33.00UK£16.29n/a16
Oct ’23UK£20.45
UK£23.24
+13.6%
16.3%UK£33.00UK£16.29n/a16
Sep ’23UK£19.97
UK£23.37
+17.1%
15.7%UK£33.00UK£16.29n/a16
Aug ’23UK£22.99
UK£23.54
+2.4%
15.5%UK£33.00UK£16.29n/a16
Jul ’23UK£20.10
UK£24.59
+22.4%
14.1%UK£33.00UK£19.60n/a16
Jun ’23UK£21.81
UK£27.32
+25.3%
13.2%UK£33.00UK£20.50n/a17
May ’23UK£24.75
UK£28.09
+13.5%
12.3%UK£33.52UK£22.00n/a17
Apr ’23UK£24.91
UK£28.10
+12.8%
12.4%UK£33.52UK£22.00n/a17
Mar ’23UK£23.82
UK£27.93
+17.3%
13.4%UK£33.52UK£21.20n/a17
Feb ’23UK£25.04
UK£28.49
+13.8%
12.5%UK£33.52UK£21.20UK£21.7917
Jan ’23UK£32.00
UK£28.87
-9.8%
10.7%UK£33.50UK£22.00UK£19.7417
Dec ’22UK£30.35
UK£28.87
-4.9%
10.7%UK£33.50UK£22.00UK£22.1917
Nov ’22UK£29.77
UK£27.85
-6.5%
11.7%UK£33.50UK£22.00UK£21.2517
Oct ’22UK£28.20
UK£27.59
-2.2%
12.3%UK£33.50UK£22.00UK£20.4517
Sep ’22UK£30.44
UK£26.63
-12.5%
12.1%UK£32.00UK£21.55UK£19.9717
Aug ’22UK£28.89
UK£26.11
-9.6%
12.5%UK£31.91UK£21.00UK£22.9917
Jul ’22UK£27.10
UK£26.21
-3.3%
11.9%UK£32.03UK£21.00UK£20.1016
Jun ’22UK£26.34
UK£24.48
-7.1%
11.5%UK£29.25UK£19.00UK£21.8115
May ’22UK£25.88
UK£24.35
-5.9%
12.0%UK£29.25UK£19.00UK£24.7515
Apr ’22UK£24.38
UK£23.72
-2.7%
9.9%UK£28.37UK£19.00UK£24.9115
Mar ’22UK£23.07
UK£22.96
-0.5%
9.9%UK£26.50UK£19.00UK£23.8214
Feb ’22UK£25.10
UK£22.90
-8.8%
9.7%UK£26.50UK£19.00UK£25.0415

Analyst Forecast: Target price is lower than the current share price.


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