RELX Valuation

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

RELX ($46.81) is trading above our estimate of [[fair value]] ($43.02)

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: RELX ($46.81) is trading above our estimate of fair value ($43.02)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for RELX. This is calculated by dividing RELX's market cap by their current earnings.
What is RELX's PE Ratio?
PE Ratio	36.5x
Earnings	UK£1.89b
Market Cap	UK£69.08b

RELX 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	8.2x
Enterprise Value/EBITDA	25.3x
PEG Ratio	4.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RELX 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	52x
VRSK Verisk Analytics	44.7x	7.9%	US$41.2b
EFX Equifax	57.1x	26.2%	US$32.7b
LDOS Leidos Holdings	18.5x	5.1%	US$21.8b
TRU TransUnion	87.6x	33.5%	US$20.0b
RELX RELX	36.5x	8.1%	US$69.1b

Price-To-Earnings vs Peers: RELX is good value based on its Price-To-Earnings Ratio (36.5x) compared to the peer average (52x).

Price to Earnings Ratio vs Industry

How does RELX's PE Ratio compare vs other companies in the US Professional Services Industry?

10 Companies	Price / Earnings	Estimated Growth	Market Cap
CNDT Conduent	1.4x	-104.3%	US$615.57m
CIH China Index Holdings	3.5x	n/a	US$87.15m
ALJJ ALJ Regional Holdings	0.7x	n/a	US$70.26m
STCN Steel Connect	3.1x	n/a	US$62.04m

10 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: RELX is expensive based on its Price-To-Earnings Ratio (36.5x) compared to the US Professional Services industry average (25.8x).

Price to Earnings Ratio vs Fair Ratio

What is RELX'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.

RELX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	36.5x
Fair PE Ratio	34.7x

Price-To-Earnings vs Fair Ratio: RELX is expensive based on its Price-To-Earnings Ratio (36.5x) compared to the estimated Fair Price-To-Earnings Ratio (34.7x).

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.