Frontdoor Valuation

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

Below Fair Value: FTDR ($54.29) is trading below our estimate of fair value ($109.45)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for FTDR. This is calculated by dividing FTDR's market cap by their current earnings.
What is FTDR's PE Ratio?
PE Ratio17.6x
EarningsUS$234.00m
Market CapUS$4.16b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for FTDR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.7x
MCW Mister Car Wash
34x22.7%US$2.6b
HRB H&R Block
14.1x5.0%US$8.2b
SCI Service Corporation International
24.6x7.7%US$12.2b
OSW OneSpaWorld Holdings
38x19.1%US$1.9b
FTDR Frontdoor
17.6x3.0%US$4.2b

Price-To-Earnings vs Peers: FTDR is good value based on its Price-To-Earnings Ratio (17.6x) compared to the peer average (27.7x).


Price to Earnings Ratio vs Industry

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

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
QSG QuantaSing Group
2.7x-21.4%US$143.12m
STG Sunlands Technology Group
1.4xn/aUS$91.73m
REDU RISE Education Cayman
1xn/aUS$40.41m
RGS Regis
0.5xn/aUS$39.58m
FTDR 17.6xIndustry Avg. 18.7xNo. of Companies6PE01632486480+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FTDR is good value based on its Price-To-Earnings Ratio (17.6x) compared to the US Consumer Services industry average (18.7x).


Price to Earnings Ratio vs Fair Ratio

What is FTDR'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.

FTDR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.6x
Fair PE Ratio18x

Price-To-Earnings vs Fair Ratio: FTDR is good value based on its Price-To-Earnings Ratio (17.6x) compared to the estimated Fair Price-To-Earnings Ratio (18x).


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 FTDR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$54.29
US$56.25
+3.6%
12.1%US$65.00US$46.00n/a4
Nov ’25US$49.52
US$50.50
+2.0%
11.8%US$56.00US$41.00n/a4
Oct ’25US$47.11
US$50.50
+7.2%
11.8%US$56.00US$41.00n/a4
Sep ’25US$48.08
US$50.50
+5.0%
11.8%US$56.00US$41.00n/a4
Aug ’25US$44.50
US$46.00
+3.4%
18.4%US$56.00US$33.00n/a4
Jul ’25US$33.39
US$41.20
+23.4%
11.3%US$45.00US$33.00n/a5
Jun ’25US$35.37
US$41.20
+16.5%
11.3%US$45.00US$33.00n/a5
May ’25US$30.76
US$39.50
+28.4%
13.8%US$45.00US$31.00n/a6
Apr ’25US$32.04
US$40.20
+25.5%
14.2%US$45.00US$31.00n/a5
Mar ’25US$31.14
US$40.20
+29.1%
14.2%US$45.00US$31.00n/a5
Feb ’25US$33.17
US$41.60
+25.4%
10.2%US$45.00US$34.00n/a5
Jan ’25US$35.22
US$41.00
+16.4%
13.0%US$45.00US$31.00n/a5
Dec ’24US$34.58
US$41.00
+18.6%
13.0%US$45.00US$31.00n/a5
Nov ’24US$33.31
US$40.80
+22.5%
14.0%US$45.00US$30.00US$49.525
Oct ’24US$30.59
US$39.80
+30.1%
13.3%US$45.00US$30.00US$47.115
Sep ’24US$33.26
US$39.80
+19.7%
13.3%US$45.00US$30.00US$48.085
Aug ’24US$34.93
US$33.00
-5.5%
15.7%US$38.00US$23.00US$44.505
Jul ’24US$31.90
US$32.00
+0.3%
16.2%US$38.00US$23.00US$33.395
Jun ’24US$31.49
US$32.00
+1.6%
16.2%US$38.00US$23.00US$35.375
May ’24US$27.24
US$30.00
+10.1%
12.8%US$34.00US$23.00US$30.765
Apr ’24US$27.88
US$30.00
+7.6%
12.8%US$34.00US$23.00US$32.045
Mar ’24US$27.97
US$26.80
-4.2%
15.7%US$34.00US$21.00US$31.145
Feb ’24US$27.55
US$26.80
-2.7%
15.7%US$34.00US$21.00US$33.175
Jan ’24US$20.80
US$26.80
+28.8%
15.7%US$34.00US$21.00US$35.225
Dec ’23US$23.38
US$26.80
+14.6%
15.7%US$34.00US$21.00US$34.585
Nov ’23US$21.79
US$27.00
+23.9%
15.6%US$34.00US$20.00US$33.316

Analyst Forecast: Target price is less than 20% higher than the current share price.


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