Diploma PLC (DPLM) Fair Value & Analysis
Industrials · GB · Market cap 9.1B GBX · ISIN GB0001826634
What is Diploma PLC really worth?
A solid business, but trading 146% above our fair value of £28.96.
Strengths
Risks
For context
Fair value as of: Aug 13, 2026
From 26 valuation models · updated 22 days ago
Share price −7.2% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price sits above even our optimistic bull case (£36.20). The favourable scenario is already priced in.
- Solid but not exceptional quality (65/100) and above fair value, neither a clear bargain nor a standout compounder.
- A fairly wide model range (£18.27 to £36.20) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.
How to read this chart
60‑month range £20.32 – £77.00 · fair‑value band £18.27 – £36.20 · the £71.20 price screens above the £28.96 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.
Analysis
Diploma PLC (DPLM) currently trades at £71.20, while our model-based Fair Value estimate is £28.96, implying the stock looks roughly 145.9% overvalued today. The Quality Score stands at 65/100 (solid quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of £32.42 per share, and 0 of the 26 models we run sit above the £71.20 price. Bear case: the Asset-Based group reads lowest at £4.95, and 26 of the 26 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, Diploma PLC generated revenue of £1.6B at a net margin of 11.5%. Revenue grew 16.8% year over year. It earns a return on equity of 19.0%. Net debt stands at £383M. Fundamentals as of Aug 13, 2026
Our scenario range runs from £18.27 (bear case) to £36.20 (bull case); at £71.20, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. For context, the median of 10 Industrials peers we cover trades at −39% fair-value upside, at −59%, DPLM screens richer than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 11 months have passed since. In that time the company retained roughly £0.7226 per share, which is 2.5 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 26 models by family
Widest divergence: DCF Models (£32.42) versus Asset-Based (£4.95). Highest evidence: FCF DCF (77).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 65 · Market factors (momentum, volatility) 73
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
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.
Full company description
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.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
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.
of which total revenue +16.7 % · buybacks/dilution −1.8 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
DPLM screens 146% overvalued. Compare with W.W. Grainger, Inc →
Peer Group
Industrial Distribution · 112 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Industrial Distribution median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Insider activity: 40/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Industrial Distribution stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| W.W. Grainger, Inc GWW | $1,306 | $613.88 | −53% |
| Fastenal Company FAST | $51.14 | $20.64 | −60% |
| Ferguson Enterprises Inc FERG | $245.18 | $148.98 | −39% |
| WESCO International, Inc WCC | $347.60 | $213.01 | −39% |
| Watsco, Inc WSO | $313.05 | $251.37 | −20% |
| Toromont Industries Ltd TIH | C$199.59 | C$127.90 | −36% |
| Applied Industrial Technologies, Inc AIT | $319.11 | $191.65 | −40% |
| Finning International Inc FTT | C$93.86 | C$76.38 | −19% |
| Addtech AB ADDTB | kr 344.00 | kr 156.35 | −55% |
| Core & Main, Inc CNM | $45.45 | $49.47 | +9% |
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