Reece Ltd
ASX:REH

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Reece Ltd
ASX:REH
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Price: 22.78 AUD -0.91% Market Closed
Market Cap: 14.7B AUD
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Relative Value

The Relative Value of one REH stock under the Base Case scenario is 26.41 AUD. Compared to the current market price of 22.78 AUD, Reece Ltd is Undervalued by 14%.

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
26.41 AUD
Undervaluation 14%
Relative Value
Price
Worst Case
Base Case
Best Case

Valuation Multiples

1.6
P/S
P/S
Price to Sales
1.6
vs History
39
vs Industry
22
Median 3Y
1.6
Median 5Y
1.5
Industry
0.7
Forward
1.6
More Details
35.1
P/E
P/E
Price to Earnings
35.1
vs History
44
vs Industry
13
Median 3Y
33.8
Median 5Y
34
Industry
14.4
Forward
37.7
More Details
19.6
P/OCF
P/OCF
Price to OCF
19.6
vs History
55
vs Industry
17
Median 3Y
22.7
Median 5Y
21.4
Industry
7.9
More Details
77.5
P/FCFE
P/FCFE
Price to FCFE
77.5
vs History
7
vs Industry
14
Median 3Y
22.7
Median 5Y
17.1
Industry
15
More Details
3.8
P/B
P/B
Price to Book Value
3.8
vs History
39
vs Industry
11
Median 3Y
3.7
Median 5Y
3.5
Industry
1.1
More Details
1.8
EV/S
EV/S
Enterprise Value to Sales
1.8
vs History
39
vs Industry
24
Median 3Y
1.7
Median 5Y
1.7
Industry
0.9
Forward
1.8
More Details
6.2
EV/GP
EV/GP
Enterprise Value to Gross Profit
6.2
vs History
39
vs Industry
29
Median 3Y
6.1
Median 5Y
6
Industry
4.2
More Details
23.8
EV/EBITDA
EV/EBITDA
Enterprise Value to EBITDA
23.8
vs History
41
vs Industry
12
Median 3Y
22.5
Median 5Y
22.7
Industry
8.9
Forward
16.4
More Details
23.8
EV/EBIT
EV/EBIT
Enterprise Value to EBIT
23.8
vs History
41
vs Industry
15
Median 3Y
22.5
Median 5Y
22.7
Industry
11.6
Forward
25.3
More Details
21.4
EV/OCF
EV/OCF
Enterprise Value to OCF
21.4
vs History
57
vs Industry
16
Median 3Y
25.3
Median 5Y
24.5
Industry
8.8
More Details
32.6
EV/FCFF
EV/FCFF
Enterprise Value to FCFF
32.6
vs History
52
vs Industry
13
Median 3Y
38.6
Median 5Y
34.1
Industry
10.2
More Details
2.9
EV/IC
EV/IC
Enterprise Value to IC
2.9
vs History
33
vs Industry
12
Median 3Y
2.7
Median 5Y
2.6
Industry
0.9
More Details

Multiples Across Competitors

REH Competitors Multiples
Reece Ltd Competitors

All Multiples
P/S
P/E
EV/EBITDA
EV/EBIT
All Countries
All Countries
Close
Market Cap P/S P/E EV/EBITDA EV/EBIT
AU
Reece Ltd
ASX:REH
14.7B AUD 1.6 35.1 23.8 23.8
JP
Itochu Corp
TSE:8001
10.7T JPY 0.7 13 11.2 17.7
JP
Mitsubishi Corp
TSE:8058
9.9T JPY 0.5 8.9 11.3 25.8
JP
Mitsui & Co Ltd
TSE:8031
9.2T JPY 0.6 9.1 13.4 21.1
US
W W Grainger Inc
NYSE:GWW
53.2B USD 3.1 29.1 19.4 21.1
US
WW Grainger Inc
XMUN:GWW
51.1B EUR 3.1 29.1 19.4 21.1
US
United Rentals Inc
NYSE:URI
47.5B USD 3.2 18.5 8.6 14.5
US
Fastenal Co
NASDAQ:FAST
42.9B USD 5.7 37.1 25.2 28.1
UK
Ferguson PLC
NYSE:FERG
35.7B USD 1.2 21.2 13.2 14.9
IN
Adani Enterprises Ltd
NSE:ADANIENT
2.7T INR 2.8 48.3 23.3 31.2
UK
Ashtead Group PLC
LSE:AHT
22B GBP 2.5 17.8 192.1 327.2
P/E Multiple
Earnings Growth P/E to Growth
AU
Reece Ltd
ASX:REH
Average P/E: 24.3
35.1
22%
1.6
JP
Itochu Corp
TSE:8001
13
24%
0.6
JP
Mitsubishi Corp
TSE:8058
8.9
0%
N/A
JP
Mitsui & Co Ltd
TSE:8031
9.1
-15%
N/A
US
W W Grainger Inc
NYSE:GWW
29.1
25%
1.2
US
W
WW Grainger Inc
XMUN:GWW
29.1
25%
1.2
US
United Rentals Inc
NYSE:URI
18.5
40%
0.5
US
Fastenal Co
NASDAQ:FAST
37.1
20%
1.9
UK
F
Ferguson PLC
NYSE:FERG
21.2
41%
0.5
IN
Adani Enterprises Ltd
NSE:ADANIENT
48.3
146%
0.3
UK
Ashtead Group PLC
LSE:AHT
17.8
41%
0.4
EV/EBITDA Multiple
EBITDA Growth EV/EBITDA to Growth
AU
Reece Ltd
ASX:REH
Average EV/EBITDA: 32.8
23.8
73%
0.3
JP
Itochu Corp
TSE:8001
11.2
15%
0.8
JP
Mitsubishi Corp
TSE:8058
11.3
0%
N/A
JP
Mitsui & Co Ltd
TSE:8031
13.4
17%
0.8
US
W W Grainger Inc
NYSE:GWW
19.4
22%
0.9
US
W
WW Grainger Inc
XMUN:GWW
19.4
22%
0.9
US
United Rentals Inc
NYSE:URI
8.6
19%
0.4
US
Fastenal Co
NASDAQ:FAST
25.2
19%
1.3
UK
F
Ferguson PLC
NYSE:FERG
13.2
25%
0.5
IN
Adani Enterprises Ltd
NSE:ADANIENT
23.3
116%
0.2
UK
Ashtead Group PLC
LSE:AHT
192.1
11%
16.9
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
AU
Reece Ltd
ASX:REH
Average EV/EBIT: 49.7
23.8
19%
1.3
JP
Itochu Corp
TSE:8001
17.7
N/A N/A
JP
Mitsubishi Corp
TSE:8058
25.8
N/A N/A
JP
Mitsui & Co Ltd
TSE:8031
21.1
N/A N/A
US
W W Grainger Inc
NYSE:GWW
21.1
20%
1.1
US
W
WW Grainger Inc
XMUN:GWW
21.1
20%
1.1
US
United Rentals Inc
NYSE:URI
14.5
24%
0.6
US
Fastenal Co
NASDAQ:FAST
28.1
21%
1.3
UK
F
Ferguson PLC
NYSE:FERG
14.9
31%
0.5
IN
Adani Enterprises Ltd
NSE:ADANIENT
31.2
122%
0.3
UK
Ashtead Group PLC
LSE:AHT
327.2
5%
65.7

See Also

Summary
REH intrinsic value, competitors valuation, and company profile.
DCF Valuation
REH stock valuation using Discount Cash Flow valuation method.
Relative Valuation
REH stock valuation using valuation multiples.
Wall Street Estimates
REH price targets and financial estimates made by Wall st analysts.
Profitability Analysis
Detailed analysis of the company's profitability.
Solvency Analysis
Analysis of the financial position and solvency of the company.
Financials
Income Statement, Balance Sheet, Cash Flow Statement.
Discount Rate
REH stock discount rate: cost of equity and WACC.
Summary
DCF Valuation
Relative Valuation
Wall Street Estimates
Profitability Analysis
Solvency Analysis
Financials
Discount Rate
Discover More
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