( ), the leisure retailer, looks to be a bit of a bargain to me. For the year ending 1 February 2025 (FY25), analysts are expecting earnings per share of 13.1p.
If their predictions prove to be correct, it means the stock’s currently (18 December) trading on a of just 7.4. Critics will point out that this earnings figure is only marginally higher than the one reported for FY22 (12.
84p). However, at one point in November 2021, the company’s shares were changing hands for 233p. At that time, the stock was trading on a multiple of 18.
1 times earnings. But this more generous valuation might have moved too far in the other direction. However, if we split the difference and assume a multiple of 12.
8 is fair, it could be argued that the stock is currently undervalued by 73% (71p). Huge potential This doesn’t seem unreasonable to me. The company that will add over a third more stores to its expanding footprint.
It now has a presence in America and a smaller foothold in Western Europe and North West Africa. And the global sportswear market is forecast to grow by 6.6% a year over the next seven years, with so-called ‘sports fashion’ driving this expansion.
According to the company, its target market of 16 to 24-year-olds consider sportswear as their first choice when it comes to spending their discretionary income. Trouble afoot? But investors appear wary — JD Sport’s share price has fallen approximately 40% since the middle of September. They appear to have a concern tha.
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