J D Wetherspoon Valuation

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

Below Fair Value: JDWP.F ($9.67) is trading below our estimate of fair value ($10.86)

Significantly Below Fair Value: JDWP.F 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 JDWP.F?

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

The above table shows the Price to Earnings ratio for JDWP.F. This is calculated by dividing JDWP.F's market cap by their current earnings.
What is JDWP.F's PE Ratio?
PE Ratio	18x
Earnings	UK£48.79m
Market Cap	UK£878.38m

JDWP.F 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	1x
Enterprise Value/EBITDA	9.7x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does JDWP.F's PE Ratio compare to its peers?

The above table shows the PE ratio for JDWP.F 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	30.4x
FWRG First Watch Restaurant Group	54.1x	19.2%	US$1.1b
CBRL Cracker Barrel Old Country Store	28.2x	25.6%	US$1.1b
ARCO Arcos Dorados Holdings	12.2x	15.4%	US$1.8b
PTLO Portillo's	27.2x	13.9%	US$679.4m
JDWP.F J D Wetherspoon	18x	16.2%	US$878.4m

Price-To-Earnings vs Peers: JDWP.F is good value based on its Price-To-Earnings Ratio (18x) compared to the peer average (27.3x).

Price to Earnings Ratio vs Industry

How does JDWP.F's PE Ratio compare vs other companies in the US Hospitality Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap
GDHG Golden Heaven Group Holdings	3.7x	n/a	US$6.21m
THRS.F Agility Real Estate	1.7x	n/a	US$2.05m

No more companies available in this PE range

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: JDWP.F is good value based on its Price-To-Earnings Ratio (18x) compared to the US Hospitality industry average (24.1x).

Price to Earnings Ratio vs Fair Ratio

What is JDWP.F'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.

JDWP.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	18x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate JDWP.F'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.