Grainger PLC
LSE:GRI

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Grainger PLC
LSE:GRI
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Price: 168.7 GBX -1.29% Market Closed
Market Cap: £1.3B

EV/EBIT

21.1
Current
17%
Cheaper
vs 3-y average of 25.5

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
21.1
=
Enterprise Value
GBX2.8B
/
EBIT
£127.4m

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
21.1
=
Enterprise Value
GBX2.8B
/
EBIT
£127.4m

Valuation Scenarios

Grainger PLC is trading below its 3-year average

If EV/EBIT returns to its 3-Year Average (25.5), the stock would be worth GBX203.91 (21% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-100%
Maximum Upside
+23%
Average Downside
39%
Scenario EV/EBIT Value Implied Price Upside/Downside
Current Multiple 21.1 GBX168.7
0%
3-Year Average 25.5 GBX203.91
+21%
5-Year Average 25.9 GBX207.5
+23%
Industry Average 0.1 GBX0.64
-100%
Country Average 0 GBX0.23
-100%

Forward EV/EBIT
Today’s price vs future ebit

Today's Enterprise Value EBIT Forward EV/EBIT
GBX2.8B
/
Oct 2025
£127.4m
=
21.1
Current
GBX2.8B
/
Sep 2026
£133.1m
=
21.3
Forward
GBX2.8B
/
Sep 2027
£137.8m
=
20.5
Forward
GBX2.8B
/
Sep 2028
£135.3m
=
20.9
Forward
GBX2.8B
/
Sep 2029
£148.8m
=
19
Forward
GBX2.8B
/
Sep 2030
£155.2m
=
18.2
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close

Market Distribution

Higher than 96% of companies in United Kingdom
Percentile
96th
Based on 1 864 companies
96th percentile
21.1
Low
0 — 0
Typical Range
0 — 0.1
High
0.1 —
Distribution Statistics
United Kingdom
Min 0
30th Percentile 0
Median 0
70th Percentile 0.1
Max 1 015

Grainger PLC
Glance View

Market Cap
1.3B GBX
Industry
Real Estate

Grainger PLC, the UK's largest listed residential landlord, has crafted its legacy over the decades with a strategic focus on sustainable rental housing. Founded in 1912, the company seamlessly evolved from its origins as a residential property trader into a cornerstone of the UK's private rental sector. Grainger's primary business model revolves around the acquisition, development, and management of residential rental properties. By concentrating on urban areas where demand consistently outpaces supply, Grainger leverages its substantial portfolio to optimize rental income. This approach is systematically reinforced through its build-to-rent schemes, which enable the company to provide high-quality, purpose-built rental properties that appeal to modern tenants seeking flexibility and quality living spaces. The essence of Grainger's profitability engine lies in its strategic foresight and extensive market knowledge. The firm skilfully maneuvers the intricacies of the UK property market by employing a dual strategy: capitalizing on asset value appreciation and ensuring steady rental yields. Their properties, often situated in vibrant communities, benefit from strategically important locations, offering tenants convenience and accessibility. Moreover, Grainger prioritizes customer service and property management, which further enhances tenant retention and provides a predictable cash flow. The company’s focus on sustainability and efficiency, coupled with a keen insight into future housing trends, allows it to not only sustain but also expand its market presence. Consequently, Grainger has established itself as a significant player in meeting the growing rental demands of the UK while securing a stable and potentially lucrative future in the sector.

GRI Intrinsic Value
119.16 GBX
Overvaluation 29%
Intrinsic Value
Price GBX168.7
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