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Renishaw plc (RSW) Fair Value & Analysis

Technology · GB · Market cap 3.5B GBX

RP Renishaw plc RSW · LSE
Price£51.75
Fair Value£35.93
Upside-30.6%
Quality64/100
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Healthy Growth
Solidly profitable · 10.1% net margin
Low debt · generates free cash flow
1.60% dividend yield
Ranks above peers (9/14)
Moderate moat 48/100
Evidence: High Range £22.90 – £52.02 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated yesterday

Fair value updated Aug 13, 2026, revised from £23.03 to £35.93 (+56.0%) since Jul 19, 2026. Share price +7.6% over the past month.

A solid business, but screening 31% overvalued on our models.

What matters now

  • Solid but not exceptional quality (64/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (£22.90 to £52.02) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

£54.55 £21.00 Fair Value £35.93 May 2021 Aug 2026

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 £21.00 – £54.55 · fair‑value band £22.90 – £52.02 · the £51.75 price screens above the £35.93 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Renishaw plc (RSW) currently trades at £51.75, while our model-based Fair Value estimate is £35.93, implying the stock looks roughly 30.6% overvalued today. The Quality Score stands at 64/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Renishaw plc generated revenue of £737M at a net margin of 10.1%. Revenue grew 7.1% year over year. It earns a return on equity of 8.2%. The balance sheet holds a net cash position of £71.8M. Fundamentals as of Aug 13, 2026

Our scenario range runs from £22.90 (bear case) to £52.02 (bull case); at £51.75, the current price sits within 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 Technology peers we cover trades at -46% fair-value upside, at -31%, RSW screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

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. Evidence
Highest evidence
Growth DCF £16.80 £24.47 £35.23 80
Residual Income £10.83 £11.77 £14.30 76
Rev-Margin DCF £15.02 £23.35 £33.21 74
All 26 models by family
DCF Models
FCF DCF £16.66 £25.55 £38.95 38
Owner Earnings £11.91 £18.06 £27.35 31
5Y Revenue Exit £15.02 £23.35 £34.05 39
5Y EBITDA Exit £21.75 £36.21 £53.39 41
5Y P/E Exit £20.63 £34.06 £48.44 38
10Y Revenue Exit £15.07 £22.78 £33.33 36
10Y EBITDA Exit £19.70 £31.62 £48.05 37
10Y P/E Exit £19.00 £30.14 £44.28 35
Earnings-Based
Graham-Dodd £7.83 £26.96 £36.19 54
Lynch FV £6.22 £8.89 £11.56 50
PEG = 1.0 £6.22 £8.89 £11.56 46
EPV £10.38 £11.83 £13.08 59
Dividend Discount
Gordon GGM £6.69 £13.34 £20.19 70
DDM Multi-Stage £6.69 £11.39 £14.08 61
Multiples
P/E Multiple £24.18 £32.24 £40.30 63
P/S Multiple £14.68 £19.58 £24.47 58
P/B Multiple £14.68 £19.58 £24.47 55
EV/EBIT £27.87 £36.77 £45.67 53
EV/EBITDA £27.31 £36.02 £44.74 54
EV/Revenue £14.67 £20.46 £26.24 43
Asset-Based
NCAV (Graham) £6.37 £8.53 £12.74 50
Growth DCF
Growth DCF £16.80 £24.47 £35.23 80
Rev-Margin DCF £15.02 £23.35 £33.21 74
Economic Profit
Residual Income £10.83 £11.77 £14.30 76
ROIC Compounder £10.38 £11.83 £13.52 72
Growth Earnings
Growth-Adj P/E £20.11 £28.72 £37.34 68

Widest divergence: Growth Earnings (£28.72) versus Asset-Based (£8.53). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 737M GBX
Revenue growth (YoY) +7.1%
Net margin 10.1%
Return on equity 8.2%
Free cash flow 102M GBX FY2025
P/E ratio 50.7
More key figures
Operating margin 11.0%
EPS (TTM) £1.02
Dividend yield 1.5%
EPS growth (YoY) -21.0%
Net cash 71.8M GBX FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 64/100

Of which business quality 64 · Market factors (momentum, volatility) 74

Profitability 48
Margins and returns on capital today
Quality Growth 21
Are margins and returns improving?
Cashflow 70
Earnings quality: real cash, not paper profit
Fin. Strength 85
Balance sheet, leverage, solvency risk
Investment 77
Disciplined investing over empire-building
Low Volatility 56
Calm price path (market factor)
Momentum 74
Price trend over the last 3–12 months (market factor)
52W Momentum 94
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

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.

About the company

Renishaw plc, an engineering and scientific technology company, designs, manufactures, distributes, sells, and services technological products and services, and analytical instruments and medical devices worldwide. It operates through two segments: Manufacturing technologies; and Analytical instruments and medical devices.

Full company description

Renishaw plc, an engineering and scientific technology company, designs, manufactures, distributes, sells, and services technological products and services, and analytical instruments and medical devices worldwide. It operates through two segments: Manufacturing technologies; and Analytical instruments and medical devices. The company offers precision measurement and process control products, such as co-ordinate measuring machine probes, software, retrofits, equator gauging systems, fixtures, machine calibration and optimization, machine tool probes, precision styli for metrology, and smart manufacturing data platform; and position and motion control products comprising interferometric laser, magnetic, and optical encoders. It also provides healthcare products, such as neuromate stereotactic robots, neuroinfuse drug delivery systems, neuroinspire surgical planning software, dixi medical's, and Raman spectrometers; industrial robots; and additive 3D printing manufacturing systems. It serves the aerospace, automotive, consumer electronics, medical and healthcare, heavy, machine builder, energy, and precision manufacturing industries, as well as scientific, research, and analysis industries. The company was incorporated in 1973 and is based in Wotton-under-Edge, the United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Renishaw plc reported revenue of £713M in FY2025 versus £567M in FY2021, a compound +5.9%/yr. Reported net income was £83.8M in FY2025, compounding −6.9%/yr from FY2021.

Growth Quality 79/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
£713M
Latest YoY
+3.1%
Avg. growth/yr (3Y) 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.
+1.9%
Avg. growth/yr (5Y) 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.
+7.0%
Avg. growth/yr (39Y) 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.
+9.4%
Revenue +5.9%/yr
FY21 £567M
FY22 £674M
FY23 £689M
FY24 £691M
FY25 £713M
Net income −6.9%/yr
FY21 £111M
FY22 £120M
FY23 £116M
FY24 £96.9M
FY25 £83.8M
Character of growth · EPS growth decomposed (2014-2025) +1.5 % p.a.
Revenue per share +5.6 pp

of which total revenue +5.6 pp · buybacks/dilution +0.0 pp

EBIT margin −3.5 pp
Tax rate −1.2 pp
Residual (interest, one-offs) +0.5 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

RSW screens 31% overvalued. Compare with Keysight Technologies, Inc →

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Cite: Fair Value Calculator (2026). "Renishaw plc Fair Value". https://www.fairvalue-calculator.com/stock/RSW

Peer Group

Scientific & Technical Instruments · 168 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.

Quality Score 64 · Above median
Fair Value upside −32% · Above median
Return on equity (TTM) 8% · Above median
Return on assets 6% · Top 25%
Net margin (TTM) 10% · Above median
Operating margin (TTM) 11% · Above median
Revenue growth 7% · Above median
Dividend yield (TTM) 1.6% · Above median
Debt / equity 0.00× · Lower than median

Valuation Multiples vs Scientific & Technical Instruments median · lower = cheaper

P/E (TTM) 50.7× · Pricier than median
P/B 5.11× · Pricier than 75% of peers
P/S (TTM) 6.43× · Pricier than 75% of peers
P/FCF 46.6× · Pricier than 75% of peers
EV/EBITDA 38.1× · Pricier than 75% of peers

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 · sector 0
FUTURE 36 · sector 28
PAST 33 · sector 23
HEALTH 100 · sector 98
DIVIDEND 32 · sector 19

VALUE 0: the price sits above our fair-value range.

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Scientific & Technical Instruments stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Keysight Technologies, Inc KEYS $354.50 $107.22 -70%
Garmin Ltd GRMN $309.98 $139.44 -55%
Teledyne Technologies Incorporated TDY $686.49 $488.95 -29%
Chroma ATE Inc 2360 2,195 TWD 322.57 TWD -85%
Hexagon AB HEXAB kr 95.06 kr 73.99 -22%
MKS Inc MKSI $294.38 $76.00 -74%
AVIC Chengdu Aircraft Company 302132 ¥57.89 ¥34.47 -40%
Fortive Corporation FTV $61.54 $33.48 -46%
Trimble Inc TRMB $57.98 $34.12 -41%
Cognex Corporation CGNX $60.67 $19.25 -68%

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Frequently asked questions

Is Renishaw plc (RSW) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of £35.93 versus a price of £51.75, about −31% (overvalued).
What is the fair value of RSW?
Our model-based fair value for Renishaw plc is £35.93 (as of Aug 13, 2026), built from audited fundamentals. The current price is £51.75.
What is the quality score of RSW?
Renishaw plc has a Quality Score of 64/100. 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 revenue of Renishaw plc (RSW)?
Renishaw plc reported trailing-twelve-month revenue of about £737M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of RSW?
The net profit margin of Renishaw plc is about 10.1%, meaning it keeps roughly 10.1% of revenue as net income. Based on the latest reported figures.
Does Renishaw plc pay a dividend?
Renishaw plc currently shows a dividend yield of about 1.47% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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