We’ve recently updated our valuation analysis.

Spire Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SR 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/Revenue3.8x
Enterprise Value/EBITDA13.3x
PEG Ratio2.4x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.7x
NJR New Jersey Resources
17.3x5.7%US$4.8b
OGS ONE Gas
20.3x7.8%US$4.4b
SWX Southwest Gas Holdings
30.1x9.7%US$4.4b
BIPC Brookfield Infrastructure
19.2xn/aUS$5.0b
SR Spire
18.2x7.5%US$3.7b

Price-To-Earnings vs Peers: SR is good value based on its Price-To-Earnings Ratio (18.2x) compared to the peer average (21.7x).


Price to Earnings Ratio vs Industry

How does SR's PE Ratio compare vs other companies in the Global Gas Utilities Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a7.9%
n/an/an/a

Price-To-Earnings vs Industry: SR is expensive based on its Price-To-Earnings Ratio (18.2x) compared to the Global Gas Utilities industry average (14.7x)


Price to Earnings Ratio vs Fair Ratio

What is SR'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.

SR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.2x
Fair PE Ratio20.2x

Price-To-Earnings vs Fair Ratio: SR is good value based on its Price-To-Earnings Ratio (18.2x) compared to the estimated Fair Price-To-Earnings Ratio (20.2x).


Share Price vs Fair Value

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

Below Fair Value: SR ($71.31) is trading above our estimate of fair value ($44.94)

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


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 SR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$71.31
US$70.33
-1.4%
5.5%US$75.00US$61.00n/a9
Jan ’24US$68.86
US$69.67
+1.2%
6.5%US$75.00US$61.00n/a9
Dec ’23US$71.19
US$73.33
+3.0%
4.0%US$78.00US$67.00n/a9
Nov ’23US$70.35
US$73.61
+4.6%
6.8%US$81.50US$67.00n/a9
Oct ’23US$62.33
US$75.50
+21.1%
5.9%US$81.50US$67.00n/a9
Sep ’23US$69.84
US$75.17
+7.6%
6.3%US$81.50US$67.00n/a9
Aug ’23US$75.12
US$74.39
-1.0%
5.7%US$81.50US$67.00n/a9
Jul ’23US$76.32
US$74.28
-2.7%
6.3%US$81.50US$67.00n/a9
Jun ’23US$77.80
US$74.83
-3.8%
5.8%US$81.50US$67.00n/a9
May ’23US$72.75
US$73.89
+1.6%
7.4%US$81.00US$62.00n/a9
Apr ’23US$72.63
US$68.78
-5.3%
6.2%US$74.00US$61.00n/a9
Mar ’23US$66.01
US$68.00
+3.0%
6.2%US$74.00US$61.00n/a9
Feb ’23US$66.31
US$68.44
+3.2%
6.3%US$74.00US$61.00n/a9
Jan ’23US$65.22
US$68.50
+5.0%
7.9%US$77.00US$58.00US$68.8610
Dec ’22US$59.64
US$69.30
+16.2%
7.1%US$77.00US$58.00US$71.1910
Nov ’22US$64.08
US$76.80
+19.9%
7.0%US$84.00US$70.00US$70.3510
Oct ’22US$62.09
US$78.70
+26.8%
5.9%US$84.00US$71.00US$62.3310
Sep ’22US$67.49
US$80.00
+18.5%
5.0%US$84.00US$71.00US$69.8410
Aug ’22US$70.95
US$79.90
+12.6%
5.1%US$84.00US$71.00US$75.1210
Jul ’22US$73.03
US$80.91
+10.8%
4.8%US$84.00US$71.00US$76.3211
Jun ’22US$72.20
US$80.64
+11.7%
5.1%US$85.00US$71.00US$77.8011
May ’22US$75.34
US$76.27
+1.2%
8.1%US$84.00US$67.00US$72.7511
Apr ’22US$73.37
US$72.30
-1.5%
6.0%US$82.00US$67.00US$72.6310
Mar ’22US$66.97
US$70.00
+4.5%
3.2%US$74.00US$66.00US$66.0110
Feb ’22US$62.35
US$69.20
+11.0%
3.5%US$74.00US$66.00US$66.3110
Jan ’22US$64.04
US$69.30
+8.2%
6.6%US$74.00US$57.00US$65.2210

Analyst Forecast: Target price is lower than the current share price.


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