Diploma (DPLM.L)
Industrials · LSE · UK
Fundamentals
Valuation and ratings
Diploma trades at £71.95, which is 62% above the £27.20 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 66 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 48.2 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Diploma
Diploma PLC, together with its subsidiaries, supplies specialized technical products and services in the United Kingdom, Europe, North America, and internationally. It operates through three business sectors: Controls, Seals, and Life Sciences. The Controls sector offers wire and cabling, interconnect, specialty fasteners, specialty adhesive and industrial automation solutions for various applications. The Seals sector supplies sealing and fluid power products, gaskets, hoses and fittings, pumps and valves, and solutions for aftermarket repairs, original equipment manufacturing, and maintenance, repair and overhaul projects. The Life Sciences sector supplies and services equipment; provides consumables and instrumentation for surgery, diagnosis of disease, and critical care support; and supplies diagnostic and scientific technologies, surgical instruments, medical devices, endoscopes, patient monitoring equipment, specialist hospital supplies, and clinical nutrition. It serves public and private hospitals, clinics and diagnostics laboratories. Diploma PLC was incorporated in 1999 and is based in London, the United Kingdom.
DPLM.L passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Diploma (DPLM.L) undervalued?
Against our discounted cash flow estimate of £27.20, DPLM.L at £71.95 is 62% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is DPLM.L's P/E ratio?
DPLM.L trades at 48.2 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.