Smith & Nephew plc

OTCPK:SNNU.F Stock Report

Market Cap: US$11.0b

Smith & Nephew Valuation

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

Below Fair Value: SNNU.F ($12.92) is trading below our estimate of fair value ($20.6)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SNNU.F?

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

The above table shows the Price to Earnings ratio for SNNU.F. This is calculated by dividing SNNU.F's market cap by their current earnings.
What is SNNU.F's PE Ratio?
PE Ratio36.1x
EarningsUS$305.00m
Market CapUS$11.01b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SNNU.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average78.8x
TFX Teleflex
37.5x22.8%US$8.9b
BAX Baxter International
140.6x39.8%US$16.8b
MASI Masimo
116.4x29.6%US$9.2b
ZBH Zimmer Biomet Holdings
20.6x8.1%US$22.0b
SNNU.F Smith & Nephew
36.1x22.5%US$8.7b

Price-To-Earnings vs Peers: SNNU.F is good value based on its Price-To-Earnings Ratio (36.1x) compared to the peer average (78.8x).

Price to Earnings Ratio vs Industry

How does SNNU.F's PE Ratio compare vs other companies in the US Medical Equipment Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MHUA Meihua International Medical Technologies
1.5xn/aUS$13.64m
PAVM PAVmed
0.7x-77.8%US$9.89m
RTSL Rapid Therapeutic Science Laboratories
0.3xn/aUS$18.99k
UTRS Minerva Surgical
n/an/aUS$8.00
No more companies available in this PE range
SNNU.F 36.1xIndustry Avg. 37.8xNo. of Companies9PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SNNU.F is good value based on its Price-To-Earnings Ratio (36.1x) compared to the US Medical Equipment industry average (37.8x).

Price to Earnings Ratio vs Fair Ratio

What is SNNU.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.

SNNU.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio36.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SNNU.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?

The above table shows the analyst SNNU.F forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$12.92
US$16.04
+24.2%
12.4%US$19.12US$13.08n/a18
Nov ’25US$14.33
US$16.51
+15.2%
12.7%US$19.31US$13.00n/a18
Oct ’25n/a
US$17.28
0%
11.2%US$19.80US$13.82n/a18
Sep ’25US$15.50
US$17.09
+10.3%
10.5%US$19.21US$13.82n/a18
Aug ’25US$14.98
US$16.59
+10.8%
10.4%US$19.15US$13.82n/a18
Jul ’25n/a
US$16.36
0%
10.9%US$19.12US$13.38n/a17
Jun ’25n/a
US$16.37
0%
12.5%US$20.65US$13.38n/a17
May ’25US$12.33
US$16.43
+33.3%
11.6%US$20.65US$13.38n/a17
Apr ’25US$12.31
US$16.51
+34.1%
11.2%US$20.65US$13.58n/a18
Mar ’25US$13.32
US$16.68
+25.2%
10.5%US$20.65US$13.58n/a18
Feb ’25US$13.95
US$16.44
+17.8%
11.1%US$20.23US$12.84n/a18
Jan ’25US$13.86
US$16.16
+16.6%
12.1%US$20.23US$12.84n/a18
Dec ’24US$12.72
US$16.21
+27.4%
11.7%US$20.23US$12.84n/a18
Nov ’24US$10.80
US$16.89
+56.4%
12.2%US$20.23US$12.45US$14.3315
Oct ’24US$12.47
US$17.58
+41.0%
9.9%US$20.36US$14.64n/a14
Sep ’24US$13.19
US$17.71
+34.3%
8.0%US$20.36US$14.66US$15.5015
Aug ’24US$14.87
US$17.96
+20.8%
10.6%US$20.56US$13.22US$14.9815
Jul ’24US$16.05
US$17.79
+10.8%
10.5%US$20.19US$13.22n/a15
Jun ’24US$14.84
US$17.70
+19.3%
11.6%US$20.19US$12.04n/a15
May ’24US$16.48
US$16.94
+2.8%
15.3%US$20.25US$10.28US$12.3316
Apr ’24US$13.64
US$15.95
+16.9%
14.8%US$19.63US$10.28US$12.3116
Mar ’24US$14.57
US$16.01
+9.9%
13.8%US$19.07US$10.28US$13.3215
Feb ’24n/a
US$15.99
0%
15.7%US$19.07US$10.28US$13.9514
Jan ’24US$13.35
US$15.42
+15.5%
16.4%US$19.07US$10.28US$13.8614
Dec ’23n/a
US$15.11
0%
16.0%US$19.07US$10.28US$12.7213
Nov ’23n/a
US$15.34
0%
14.5%US$19.07US$10.28US$10.8013

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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