Is There An Opportunity With Ryanair Holdings plc's (ISE:RYA) 22% Undervaluation?
Jun 18
Irish (ISEQ) Market Analysis & Valuation
UpdatedJun 19, 2024
DataAggregated Company Financials
Companies19
- 7D-0.8%
- 3M-4.1%
- 1Y10.1%
- YTD4.7%
Over the last 7 days, the market has remained flat, with no particular sector making any big moves this week. As for the longer term, the market has risen 10% in the past 12 months. As for the next few years, earnings are expected to grow by 5.1% per annum.
Market Valuation and Performance
Has the Irish Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 19 Jun 2024 | €90.8b | €61.5b | €8.1b | 14.3x | 11.2x | 1.5x |
| Fri, 17 May 2024 | €96.3b | €61.2b | €8.2b | 14.9x | 11.7x | 1.6x |
| Sun, 14 Apr 2024 | €96.2b | €61.3b | €8.2b | 14.1x | 11.7x | 1.6x |
| Tue, 12 Mar 2024 | €94.1b | €61.1b | €8.3b | 13.4x | 11.4x | 1.5x |
| Thu, 08 Feb 2024 | €89.0b | €62.1b | €7.5b | 10.9x | 11.8x | 1.4x |
| Sat, 06 Jan 2024 | €87.5b | €61.6b | €7.7b | 10.8x | 11.4x | 1.4x |
| Mon, 04 Dec 2023 | €86.1b | €61.7b | €7.7b | 10.4x | 11.2x | 1.4x |
| Wed, 01 Nov 2023 | €77.5b | €60.9b | €7.3b | 9.7x | 10.7x | 1.3x |
| Fri, 29 Sep 2023 | €83.4b | €60.9b | €7.3b | 10.2x | 11.5x | 1.4x |
| Sun, 27 Aug 2023 | €86.8b | €60.8b | €7.3b | 10.3x | 11.8x | 1.4x |
| Tue, 25 Jul 2023 | €85.4b | €59.3b | €5.8b | 12.1x | 14.6x | 1.4x |
| Thu, 22 Jun 2023 | €83.5b | €59.3b | €5.8b | 12.4x | 14.3x | 1.4x |
| Sat, 20 May 2023 | €85.6b | €58.6b | €5.9b | 12.4x | 14.5x | 1.5x |
| Mon, 17 Apr 2023 | €83.9b | €58.6b | €5.9b | 12.3x | 14.3x | 1.4x |
| Wed, 15 Mar 2023 | €83.7b | €58.6b | €5.9b | 12.4x | 14.2x | 1.4x |
| Fri, 10 Feb 2023 | €84.3b | €55.6b | €6.0b | 13.1x | 14x | 1.5x |
| Sun, 08 Jan 2023 | €80.9b | €53.7b | €5.7b | 12.8x | 14.1x | 1.5x |
| Tue, 06 Dec 2022 | €75.6b | €53.7b | €5.7b | 12.8x | 13.2x | 1.4x |
| Thu, 03 Nov 2022 | €72.0b | €51.5b | €4.9b | 14.2x | 14.7x | 1.4x |
| Sat, 01 Oct 2022 | €66.8b | €51.5b | €4.9b | 13.3x | 13.6x | 1.3x |
| Mon, 29 Aug 2022 | €54.6b | €43.1b | €4.0b | 17.2x | 13.8x | 1.3x |
| Wed, 27 Jul 2022 | €54.4b | €39.1b | €3.5b | 19x | 15.8x | 1.4x |
| Fri, 24 Jun 2022 | €54.2b | €36.8b | €3.0b | 17.3x | 18.1x | 1.5x |
| Sun, 22 May 2022 | €107.3b | €73.6b | €6.2b | 18.5x | 17.2x | 1.5x |
| Tue, 19 Apr 2022 | €111.4b | €71.9b | €6.0b | 20.9x | 18.6x | 1.5x |
| Thu, 17 Mar 2022 | €113.8b | €71.4b | €6.0b | 15.2x | 18.8x | 1.6x |
| Sat, 12 Feb 2022 | €129.1b | €65.9b | €3.4b | 26.6x | 37.6x | 2x |
| Mon, 10 Jan 2022 | €130.9b | €63.8b | €3.1b | 27.5x | 42x | 2.1x |
| Wed, 08 Dec 2021 | €145.4b | €70.9b | €3.0b | 23.1x | 47.7x | 2.1x |
| Fri, 05 Nov 2021 | €153.7b | €70.3b | €3.0b | 23.5x | 51.9x | 2.2x |
| Sun, 03 Oct 2021 | €151.9b | €69.5b | €2.5b | 24x | 60.6x | 2.2x |
| Tue, 31 Aug 2021 | €158.1b | €68.8b | €2.5b | 23.8x | 64.4x | 2.3x |
| Wed, 07 Jul 2021 | €146.8b | €68.7b | €2.4b | 22.9x | 60.1x | 2.1x |
Price to Earnings Ratio
60.1x
Current Market PE
- Investors are pessimistic on the Irish market, indicating that they anticipate earnings will not grow as fast as they have historically.
- The market is trading at a PE ratio of 11.2x which is lower than its 3-year average PE of 22.6x.
Past Earnings Growth
- The earnings for Irish listed companies have grown 49% per year over the last three years.
- Meanwhile revenues for these companies have declined 3.6% per year.
- This means that less sales are being generated overall, but since the cost of doing business is lower, profits are increasing.
Sector Trends
Which sectors have driven the changes within the Irish Market?
| IE Market | -0.79% | |
| Financials | 1.62% | |
| Utilities | 1.41% | |
| Energy | 0% | |
| Tech | 0% | |
| Telecom | 0% | |
| Materials | -0.45% | |
| Consumer Discretionary | -0.61% | |
| Consumer Staples | -1.12% | |
| Healthcare | -2.09% | |
| Real Estate | -2.16% | |
| Industrials | -2.33% | |
Sector PE
- Investors favour the Healthcare sector the most for future growth even though it's trading below its 3-year average PE ratio of 23.4x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 8.6% which is higher than its past year's earnings decline of 1.7% per year.
Forecasted Growth
- Analysts are most optimistic on the Utilities sector, expecting annual earnings growth of 19% over the next 5 years.
- This is better than its past earnings decline of 49% per year.
- In contrast, the Financials sector is expected to see its earnings decline by 5.6% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | Sector | |
|---|---|---|---|---|---|---|
| A5G AIB Group | €5.01 | 1.8% +€215.4m | 25.7% | PB0.8x | Financials | |
| BIRG Bank of Ireland Group | €10.02 | 1.9% +€190.2m | 4.9% | PB0.8x | Financials | |
| OIZ Origin Enterprises | €3.23 | 5.6% +€18.1m | -4.4% | PE8x | Consumer Staples | |
| GRP Greencoat Renewables | €0.86 | 1.4% +€12.7m | -17.6% | PE14.1x | Utilities | |
| MLC Malin | €5.90 | 3.5% +€3.8m | 22.9% | PB1x | Healthcare |
