# Derwent London plc (DLN.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Real Estate / Equity Real Estate Investment Trusts (REITs). Price 1945p, market value 2.1 billionp.

## Valuation
- **P/E (trailing): 45.2×** (5-yr avg 1543.2×, 3-yr avg 1553.9×). Derwent London plc trades at 45.2× trailing earnings, well below its own five-year average of 1543.2×: cheap by its own standards. The Real Estate median in the September 2026 study was 25.2×. Forward P/E is 18.5×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.47**. A PEG of 0.47 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 3.2×**. Each dollar of revenue is priced at 3.2×.
- **Price / book: 0.6×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **EV / EBITDA: 11.1×**. Enterprise value is 11.1× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 16.8%** (5-yr avg 0.0%). Free cash flow equals 16.8% of the market value, above its five-year average of 0.0%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 2.2%**. The inverse of the P/E: 2.2% of the price is earned each year.

## Profitability
- **Gross margin: 59.0%**. Derwent London plc keeps 59.0% of revenue after the direct cost of what it sells.
- **Operating margin: 47.4%**. 47.4% of revenue is left after running the business, an exceptional level.
- **Net margin: 41.4%**. 41.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 4.5%**. 4.5% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 6.2%**. Return on all capital, debt included, is 6.2%.
- **Return on assets: 5.2%**. Each dollar of assets produces 5.2% of profit.

## Growth
- **Revenue growth (1 yr): 43.1%** (3-yr 16.0%/yr, 5-yr 7.8%/yr). Revenue grew 43.1% over the last year, against 7.8% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 39.8%**. Earnings per share rose 39.8%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): 25.8%/yr**. Free cash flow has compounded at 25.8% a year over three years.

## Financial health
- **Debt to equity: 0.43**. Debt is 0.43 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 4.5×**. It would take 4.5 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: 3.5×**. Operating profit covers interest 3.5× over, a safe margin.
- **Current ratio: 0.59** (quick 0.45). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 1.86**. A Z-score of 1.86 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 4.18%** (1p per share, trailing). Derwent London plc yields 4.18%, an income-level yield.
- **Payout ratio: 56%** (50% of free cash flow). 56% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 6**. 6 straight years of increases.
- **Dividend growth (5 yr): 2.0%/yr** (1-yr 1.3%). The dividend has grown 2.0% a year over five years.
- **Shareholder yield: 4.2%**. Dividends plus net buybacks return 4.2% of the market value a year.

## Analyst view
- **Analyst consensus: hold** (13 analysts). 13 analysts cover Derwent London plc; the consensus is hold, with an average price target of 2112p (+9% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 16.8%** (YTD 12.6%, 3-mo 11.1%). The shares are up 16.8% over twelve months including dividends.
- **From 52-week high: -11.4%** (32.4% above the low). Trading 11% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 36**. An RSI of 36 is neutral.
- **Beta (1 yr): 1.09** (volatility 25%). Beta of 1.09 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=DLN.L · Page: https://foliofundamentals.com/stocks/dln.l

Not investment advice.