Travis Perkins Valuation

Is TPRK.Y 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-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: TPRK.Y ($9.69) is trading below our estimate of fair value ($12.57)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TPRK.Y?

Key metric: As TPRK.Y is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for TPRK.Y. This is calculated by dividing TPRK.Y's market cap by their current revenue.
What is TPRK.Y's PS Ratio?
PS Ratio	0.3x
Sales	UK£4.75b
Market Cap	UK£1.60b

TPRK.Y 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	0.5x
Enterprise Value/EBITDA	13x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does TPRK.Y's PS Ratio compare to its peers?

The above table shows the PS ratio for TPRK.Y vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	2x
TGH Textainer Group Holdings	2.5x	2.7%	US$2.1b
HEES H&E Equipment Services	1.4x	3.8%	US$2.2b
DNOW DNOW	0.7x	2.8%	US$1.6b
MGRC McGrath RentCorp	3.4x	3.4%	US$3.0b
TPRK.Y Travis Perkins	0.3x	2.6%	US$1.6b

Price-To-Sales vs Peers: TPRK.Y is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (2x).

Price to Sales Ratio vs Industry

How does TPRK.Y's PS Ratio compare vs other companies in the US Trade Distributors Industry?

6 Companies	Price / Sales	Estimated Growth	Market Cap
TITN Titan Machinery	0.1x	-2.1%	US$352.13m
ALTG Alta Equipment Group	0.1x	2.5%	US$263.06m
BYU BAIYU Holdings	0.07x	n/a	US$8.94m
MWG Multi Ways Holdings	0.2x	n/a	US$8.78m

6 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: TPRK.Y is good value based on its Price-To-Sales Ratio (0.3x) compared to the US Trade Distributors industry average (1.1x).

Price to Sales Ratio vs Fair Ratio

What is TPRK.Y's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TPRK.Y PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.3x
Fair PS Ratio	1x

Price-To-Sales vs Fair Ratio: TPRK.Y is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (1x).

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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