Legrand Valuation

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

Below Fair Value: LR N (MX$2172.09) is trading below our estimate of fair value (MX$2334.64)

Significantly Below Fair Value: LR N 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 LR N?

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

The above table shows the Price to Earnings ratio for LR N. This is calculated by dividing LR N's market cap by their current earnings.
What is LR N's PE Ratio?
PE Ratio	24x
Earnings	€1.05b
Market Cap	€25.07b

LR N 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/Revenue	3.4x
Enterprise Value/EBITDA	15.7x
PEG Ratio	2.8x

Price to Earnings Ratio vs Peers

How does LR N's PE Ratio compare to its peers?

The above table shows the PE ratio for LR N vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	24.5x
GCARSO A1 Grupo Carso. de	18.8x	15.6%	Mex$260.7b
IDEAL B-1 Impulsora del Desarrollo y el Empleo en América Latina. de	13.6x	n/a	Mex$110.6b
ROK Rockwell Automation	33.1x	10.7%	US$31.6b
HUBB Hubbell	32.7x	10.3%	US$23.9b
LR N Legrand	24x	8.6%	Mex$25.1b

Price-To-Earnings vs Peers: LR N is good value based on its Price-To-Earnings Ratio (24x) compared to the peer average (24.5x).

Price to Earnings Ratio vs Industry

How does LR N's PE Ratio compare vs other companies in the Global Electrical Industry?

36 Companies	Price / Earnings	Estimated Growth	Market Cap

36 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: LR N is good value based on its Price-To-Earnings Ratio (24x) compared to the Global Electrical industry average (26.5x).

Price to Earnings Ratio vs Fair Ratio

What is LR N'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.

LR N PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	24x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate LR N's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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