The recent Fool report13 Jul 2023 14:20
With the share price near 234p, the price-to-book value is just under 0.6. And a reading below one suggests the valuation is less than the value of the firm’s assets. However, it’s always worth considering that assets may be worth less in reality than the figures shown in the accounts.
Yet City analysts are optimistic. They’ve pencilled in a robust recovery in earnings for the trading year to March 2025. And they think the shareholder dividend will likely increase by almost 60% that year.
But that projected increase arises because the directors stopped the final dividend for the year to March 2023. And that was because the poor performance of Royal Mail, and increased investment in GLS – its European parcels division.
Nevertheless, set against those analysts’ expectations, the forward-looking dividend yield is around 7.6% as I write