Reece Ltd
ASX:REH

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Reece Ltd
ASX:REH
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Price: 15.79 AUD 0.7% Market Closed
Market Cap: 10.2B AUD

Relative Value

The Relative Value of one REH stock under the Base Case scenario is 25.07 AUD. Compared to the current market price of 15.79 AUD, Reece Ltd is Undervalued by 37%.

Relative Value is the estimated value of a stock based on various valuation multiples like P/E and EV/EBIT ratios. It offers a quick snapshot of a stock's valuation in relation to its peers and historical norms.

REH Relative Value
Base Case
25.07 AUD
Undervaluation 37%
Relative Value
Price
Worst Case
Base Case
Best Case

Valuation Multiples

vs History
82
vs Industry
22
Median 3Y
1.5
Median 5Y
1.5
Industry
0.7
Forward
1.1
vs History
68
vs Industry
13
Median 3Y
32.3
Median 5Y
34.9
Industry
14.1
Forward
26.1
vs History
69
vs Industry
17
Median 3Y
22.1
Median 5Y
21.4
Industry
8.1
vs History
14
vs Industry
14
Median 3Y
23.6
Median 5Y
17.8
Industry
15
vs History
90
vs Industry
11
Median 3Y
3.5
Median 5Y
3.5
Industry
1.1
vs History
87
vs Industry
24
Median 3Y
1.7
Median 5Y
1.7
Industry
0.9
Forward
1.3
vs History
88
vs Industry
29
Median 3Y
5.8
Median 5Y
6
Industry
4.1
vs History
79
vs Industry
12
Median 3Y
21.4
Median 5Y
23.5
Industry
8.5
Forward
12.5
vs History
79
vs Industry
15
Median 3Y
21.4
Median 5Y
23.5
Industry
11.1
Forward
19.5
vs History
69
vs Industry
16
Median 3Y
24.6
Median 5Y
24.5
Industry
9.1
vs History
50
vs Industry
13
Median 3Y
38.4
Median 5Y
35.4
Industry
10.8
vs History
80
vs Industry
12
Median 3Y
2.6
Median 5Y
2.6
Industry
0.9

Multiples Across Competitors

REH Competitors Multiples
Reece Ltd Competitors

Market Cap P/S P/E EV/EBITDA EV/EBIT
AU
Reece Ltd
ASX:REH
10.2B AUD 1.1 27.1 19 19
JP
Mitsubishi Corp
TSE:8058
11.1T JPY 0.6 10.1 15 38.2
JP
Itochu Corp
TSE:8001
10.3T JPY 0.7 11.9 11.4 18.3
JP
Mitsui & Co Ltd
TSE:8031
8.7T JPY 0.6 8.8 14.3 24.3
US
WW Grainger Inc
XMUN:GWW
43.5B EUR 2.7 24.7 16.7 18.2
US
W W Grainger Inc
NYSE:GWW
47B USD 2.7 24.6 16.7 18.2
US
Fastenal Co
NASDAQ:FAST
42.8B USD 5.7 37.2 25.3 28.3
US
United Rentals Inc
NYSE:URI
41B USD 2.7 15.9 7.6 13
US
Ferguson Enterprises Inc
NYSE:FERG
32.5B USD 4.7 117 82.6 86.5
IN
Adani Enterprises Ltd
NSE:ADANIENT
2.7T INR 3 72.7 23.4 31.4
JP
Sumitomo Corp
TSE:8053
4.4T JPY 0.6 11 10.7 16.6
EV/EBITDA Multiple
EBITDA Growth EV/EBITDA to Growth
AU
Reece Ltd
ASX:REH
Average EV/EBITDA: 22.1
19
17%
1.1
JP
Mitsubishi Corp
TSE:8058
15
-2%
N/A
JP
Itochu Corp
TSE:8001
11.4
5%
2.3
JP
Mitsui & Co Ltd
TSE:8031
14.3
3%
4.8
US
W
WW Grainger Inc
XMUN:GWW
16.7
7%
2.4
US
W W Grainger Inc
NYSE:GWW
16.7
7%
2.4
US
Fastenal Co
NASDAQ:FAST
25.3
9%
2.8
US
United Rentals Inc
NYSE:URI
7.6
6%
1.3
US
Ferguson Enterprises Inc
NYSE:FERG
82.6
959%
0.1
IN
Adani Enterprises Ltd
NSE:ADANIENT
23.4
26%
0.9
JP
Sumitomo Corp
TSE:8053
10.7
9%
1.2
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
AU
Reece Ltd
ASX:REH
Average EV/EBIT: 28.4
19
3%
6.3
JP
Mitsubishi Corp
TSE:8058
38.2
N/A N/A
JP
Itochu Corp
TSE:8001
18.3
N/A N/A
JP
Mitsui & Co Ltd
TSE:8031
24.3
N/A N/A
US
W
WW Grainger Inc
XMUN:GWW
18.2
7%
2.6
US
W W Grainger Inc
NYSE:GWW
18.2
7%
2.6
US
Fastenal Co
NASDAQ:FAST
28.3
9%
3.1
US
United Rentals Inc
NYSE:URI
13
0%
N/A
US
Ferguson Enterprises Inc
NYSE:FERG
86.5
972%
0.1
IN
Adani Enterprises Ltd
NSE:ADANIENT
31.4
27%
1.2
JP
Sumitomo Corp
TSE:8053
16.6
N/A N/A