SBRY.L Fair Value
What is the fair value of SBRY.L?
As of 2025-05-07, the Fair Value of J Sainsbury PLC (SBRY.L) is 257.68 GBP. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 272.4 GBP, the upside of J Sainsbury PLC is -5.4%.
Is SBRY.L a good investment?
With the market price of 272.4 GBP and our fair value calculation, J Sainsbury PLC (SBRY.L) is not a good investment. Investing in SBRY.L stocks now will result in a potential loss of 5.4%.
Peter Lynch's formula is:
The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.
| Historical Earnings | ||||||
| 03-2021 | 03-2022 | 03-2023 | 03-2024 | 03-2025 | 5Y Avg | |
| Net income | -201 | 677 | 207 | 137 | 242 | 212 |
| YoY growth | -232.2% | 436.8% | -69.4% | -33.8% | 76.6% | 35.6% |
| Market Cap (mil) | 6,396 |
| P/E | 26.4x |
| Forward P/E | 14.5x |
| EPS | 10.31 |
| Avg earnings growth rate | 35.6% |
| TTM earnings | 242 |
Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.
Therefore, his formula to determine a company's fair value is:
Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG
PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.