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Diploma PLC (DPMAY) fair value: what the stock is really worth
As of Oct 2, 2026: fair value of Diploma PLC $21.92, price $25.81, upside -15.1%, quality 70 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
- Fair value above price? No
- Good quality? Yes
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Broad data
Oct 3, 2026
Broad data
Oct 3, 2026
Diploma PLC
DPMAY · USOvervalued / MonitorQuality growthQuality is not strong enough to offset the price risk.
!Fair value $21.92 · Overvalued (−15.1%)
✓Quality 70/100
✓Healthy Growth (revenue 5y +23.1 %/yr)
✓Solidly profitable · 11.5% net margin (TTM)
✓Low debt · generates free cash flow
✓2.4% dividend yield · Well covered
✓Wide moat 66/100
What runs behind every stock
26
valuation models
8 families, DCF to NCAV
37
quality factors
margins, balance sheet, cashflow, debt
6
AI factors
moat, what no ratio measures
2,000+
data points
verified, per stock, median
69 individual criteria per stock, every one traceable See the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 3, 2026.
How to read this chart
38‑month range $8.10 – $26.32 · fair‑value band $14.44 – $28.50 · the $25.81 price screens above the $21.92 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 3, 2026.
Company profile
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.
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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.
Stock analysis
Diploma PLC (DPMAY) currently trades at $25.81, while our model-based Fair Value estimate is $21.92, 15.1% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $14.15 per share, and 0 of the 26 models we run sit above the $25.81 price.
Bear case: the Dividend Discount group reads lowest at $3.21, and 26 of the 26 models stay below the price. Evidence for this calculation is high.
Scenario range: $14.44 (bear) to $28.50 (bull), the price of $25.81 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 70/100 (solid quality), in the Industrials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Diploma PLC reported revenue of £1.5B in FY2025 versus £787M in FY2021, a compound +18.0%/yr. Reported net income was £185M in FY2025, compounding +27.6%/yr from FY2021.
Key figures
Market cap $12.6B · P/E ratio 54.9 · P/S ratio 6.66 · EPS (TTM) $0.4700 · Dividend yield 2.4% · Net margin 12.1% · Return on equity 19.0% · Return on assets (EBIT) 12.0%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (medium confidence).
What moves the price
The share trades about 2% below its 52-week high and 59% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −30% fair-value upside, at −15%, DPMAY screens cheaper than that median.
Fair Value models
Bear $14.44
Fair Value $21.92
Bull $28.50
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model.
Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.
Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Highest evidence
FCF DCF
$9.00
$17.14
$37.90
74
Growth DCF
$8.72
$18.65
$34.49
74
Residual Income
$2.98
$3.84
$6.35
74
All 26 models by family
DCF Models
FCF DCF
$9.00
$17.14
$37.90
74
Owner Earnings
$7.14
$15.54
$31.83
71
5Y Revenue Exit
$5.57
$10.50
$17.40
70
5Y EBITDA Exit
$7.25
$14.26
$23.51
73
5Y P/E Exit
$6.98
$13.66
$21.75
69
10Y Revenue Exit
$6.41
$11.72
$20.45
64
10Y EBITDA Exit
$7.75
$14.61
$25.99
65
10Y P/E Exit
$7.56
$14.15
$24.40
61
Earnings-Based
Graham-Dodd
$3.10
$18.55
$25.85
63
Lynch FV
$5.28
$7.54
$9.81
61
PEG = 1.0
$5.28
$7.54
$9.81
57
EPV
$4.55
$5.44
$6.21
71
Dividend Discount
Gordon GGM
$1.83
$3.80
$6.03
66
DDM Multi-Stage
$1.83
$3.21
$3.99
67
Multiples
P/E Multiple
$7.19
$9.58
$11.98
63
P/S Multiple
$5.64
$7.53
$9.41
58
P/B Multiple
$5.82
$7.76
$9.70
55
EV/EBIT
$8.23
$11.22
$14.21
66
EV/EBITDA
$6.85
$9.38
$11.91
67
EV/Revenue
$4.00
$6.04
$8.07
53
Asset-Based
NCAV (Graham)
$1.23
$1.64
$2.45
54
Growth DCF
Growth DCF
$8.72
$18.65
$34.49
74
Rev-Margin DCF
$5.57
$10.35
$17.08
70
Economic Profit
Residual Income
$2.98
$3.84
$6.35
74
ROIC Compounder
$5.60
$8.45
$12.21
70
Growth Earnings
Growth-Adj P/E
$7.69
$10.99
$14.28
67
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Set up alert →Quality Score breakdown
Overall quality
70/100
Of which business quality 68 · Market factors (momentum, volatility) 71
Profitability
64
Margins and returns on capital today
Quality Growth
69
Are margins and returns improving?
Cashflow
75
Earnings quality: real cash, not paper profit
Fin. Strength
70
Balance sheet, leverage, solvency risk
Investment
61
Disciplined investing over empire-building
Low Volatility
58
Calm price path (market factor)
Momentum
69
Price trend over the last 3–12 months (market factor)
52W Momentum
90
Distance to the 52-week high (market factor)
Net Issuance
69
Share count: buybacks or dilution?
Revenue & earnings trend
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.
100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+11.8%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+14.6%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+23.1%
Start year 2020 (pandemic)
’20
’21
’22
’23
’24
’25
What shareholders gained per year (last 5 years) (mathematically smoothed) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip.
+27.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year+25.2%
Dividend (yield on the price)2.4%
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.13% → 19%
2025 sits 57% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−2.1%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+11.7%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in GBP, UK: IMF forecast 2.3% a year to 2030, 3.3% from 2016 to 2025) that is about −4.3% a year for the price and +9.1% for the forecasts.
Forecast 2026 (sales)+13.4%
Forecast 2027 (sales)+13.4%
Projected 2028 (sales)+12.0%
Projected 2029 (sales)+10.6%
Projected 2030 (sales)+9.1%
DPMAY screens overvalued: fair value 15% below the price. Compare with W.W. Grainger, Inc →
Earlier news
News mood ⓘNews mood, the average tone of recent news (39 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.
Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
- Diploma (LSE:DPLM) Stock Sees Modest Fair Value Lift After Analyst Target Increases
- Diploma (LSE:DPLM) Stock Gets Fair Value Bump As Analysts Lift Targets
- How The Diploma (LSE:DPLM) Story Is Shifting As Analyst Targets Converge Around £75.54
- Diploma PLC (DPLMF) (Half Year 2026) Earnings Call Highlights: Strong Growth and Strategic ...
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Context: sector, industry, market
- P/E, EV/EBITDA and margins by industry (reference tables)
- Undervalued stocks: US Stocks
- Valuation of the USA market
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
None of the checked exposures detected
Similar stocks
10 more Industrial Distribution stocks, each showing price versus our Fair Value estimate.
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| W.W. Grainger, Inc GWW | $1,256 | $623.81 | −50% |
| Fastenal Company FAST | $50.23 | $41.28 | −18% |
| Ferguson Enterprises Inc FERG | $222.74 | $32.49 | −85% |
| WESCO International, Inc WCC | $367.44 | $151.88 | −59% |
| Toromont Industries Ltd TIH | C$226.98 | C$127.90 | −44% |
| Watsco, Inc WSO | $317.23 | $250.18 | −21% |
| Applied Industrial Technologies, Inc AIT | $332.29 | $205.13 | −38% |
| Finning International Inc FTT | C$106.19 | C$74.26 | −30% |
| Indutrade AB INDT | kr 258.60 | kr 284.46 | +10% |
| Core & Main, Inc CNM | $42.64 | $50.21 | +18% |
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Frequently asked questions
Is Diploma PLC (DPMAY) overvalued or undervalued?
As of Oct 3, 2026, our model estimates a fair value of $21.92 versus a price of $25.81, about −15% upside (overvalued).
What is the fair value of DPMAY?
Our model-based fair value for Diploma PLC is $21.92 (as of Oct 3, 2026), built from audited fundamentals. The current price: $25.81.
What is the quality score of DPMAY?
Diploma PLC has a Quality Score of 70/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Diploma PLC (DPMAY)?
Our model-based price target is the fair value of $21.92 (as of Oct 3, 2026) from 26 valuation models. Cautious scenario $14.44, optimistic scenario $28.50. It is a calculation from audited fundamentals, not an analyst target.
What is the Diploma PLC stock forecast for 2026?
Our models put fair value at $21.92, about −15% upside versus a price of $25.81 (overvalued). Cautious scenario $14.44, optimistic scenario $28.50. The calculation is refreshed regularly with new filings.
What is the revenue of Diploma PLC (DPMAY)?
Diploma PLC reported trailing-twelve-month revenue of about £1.6B (latest available figure, as of Oct 3, 2026).
Does Diploma PLC pay a dividend?
Diploma PLC currently shows a dividend yield of about 2.45% relative to its recent price (as of Oct 3, 2026).
What growth is priced into Diploma PLC (DPMAY)?
For today's price to be fair in a discounted-cash-flow model, Diploma PLC would have to grow free cash flow by -2.1 % per year for five years (discount rate 9.0 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +23.1 % per year. As of Oct 3, 2026.
What discount rate (WACC) does the fair value of DPMAY use?
Our models discount Diploma PLC at 9.0 %: a base by market capitalisation (large), damped by beta 0.92, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Diploma PLC that is -2.1 % per year a year over ten years, using the same discount rate (9.0 %) and the same formula as our fair value.
How much growth has Diploma PLC (DPMAY) delivered so far?
Over the past 5 years revenue at Diploma PLC grew +23.1 % a year. The price currently implies -2.1 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Diploma PLC (DPMAY) growing?
The median revenue growth in the sector is +7.0 % a year. That is the yardstick for the growth priced into Diploma PLC (-2.1 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Diploma PLC (DPMAY)?
The free-cash-flow yield on the price is 9.69 %: that much free cash flow Diploma PLC produces per unit of market value. When it exceeds the discount rate of our models (9.0 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Diploma PLC (DPMAY)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Diploma PLC it is $21.92 per share (as of Oct 3, 2026), against a price of $25.81. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Diploma PLC stock overvalued or undervalued in 2026?
As of Oct 3, 2026, DPMAY trades above its calculated fair value: price $25.81, fair value $21.92, a gap of about −15% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of DPMAY?
No. The price is what the market pays today ($25.81); the fair value is what the company's own numbers justify ($21.92). For Diploma PLC the two are $3.89 per share apart. That gap is exactly why we show both numbers side by side.
How much is Diploma PLC worth?
The market values Diploma PLC at about $12.6B (market capitalisation, as of Oct 3, 2026). Per share that is $25.81; our models calculate a fair value of $21.92 per share.
What do the bullish and bearish scenarios say about DPMAY?
Our models span a range for Diploma PLC: cautious scenario $14.44, base $21.92, optimistic $28.50 per share (as of Oct 3, 2026, price $25.81). The range comes from different growth and margin assumptions, not from analyst opinions.
How far is DPMAY from its 52-week high?
Diploma PLC trades at $25.81, about 2% below its 52-week high of $26.32 and 59% above the low of $16.24 (as of Oct 2, 2026). Distance from the high says nothing about value: that is what the fair value of $21.92 is for.
Which stocks are comparable to Diploma PLC?
From the same area (Industrials) we also value W.W. Grainger, Inc, Fastenal Company, Ferguson Enterprises Inc, WESCO International, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Diploma PLC stock attractive at the current price?
The data as of Oct 3, 2026: price $25.81, calculated fair value $21.92 (−15%), Quality Score 70/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of DPMAY calculated?
We run Diploma PLC through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $21.92, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. Diploma PLC itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Diploma PLC (DPMAY)?
The closing price on Oct 2, 2026 was $25.81. Our model-based fair value is $21.92, about −15% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Diploma PLC right now?
A high-quality business (quality 70/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety. A fairly wide model range ($14.44 to $28.50) leaves room in how you read the outcome.
Key figures of Diploma PLC
How large is the market capitalisation of Diploma PLC (DPMAY)?
The market capitalisation of Diploma PLC is $12.6B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/E ratio of Diploma PLC (DPMAY)?
The price-to-earnings ratio of Diploma PLC is 54.9. Price to earnings: how many years of current profit you pay for the stock. A P/E of 10 means ten years of profit.
What is the P/S ratio of Diploma PLC (DPMAY)?
The price-to-sales ratio of Diploma PLC is 6.66 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Diploma PLC (DPMAY)?
Earnings per share at Diploma PLC are $0.4700 (price ÷ EPS = P/E 54.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Diploma PLC (DPMAY)?
The dividend yield of Diploma PLC is 2.4% (payout 134%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Diploma PLC (DPMAY)?
The net margin of Diploma PLC is 12.1% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Diploma PLC (DPMAY)?
The return on equity (ROE) of Diploma PLC is 19.0% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Diploma PLC (DPMAY)?
On an EBIT basis the return on assets of Diploma PLC is 12.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Diploma PLC (DPMAY)?
The operating margin of Diploma PLC is 19.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Diploma PLC (DPMAY)?
Revenue at Diploma PLC is growing +16.8% versus a year earlier (3y avg +14.6%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Diploma PLC (DPMAY)?
Earnings per share at Diploma PLC are growing +4.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Diploma PLC (DPMAY) carry?
The net debt of Diploma PLC is £299M (fiscal year 2025, ≈ 1.2 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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