SThree

Weak DACH Demand And Fee Declines Will Recover Slowly

AnalystLowTarget

Not Invested

Community Contributor

Published

19 Jul 25

Updated

17 Dec 25

Views

n/a

AnalystLowTarget's Fair Value

n/a

-29.8%

12.2%

-29.8%

12.2%

You can edit this narrative until Dec 18 5:03 AM. Then, changes will post as Updates.

Author's Valuation

UK£1.5518.6% overvalued

AnalystLowTarget Fair Value

Narrative

Updates1

Shared on 17 Dec 25

Fair value Decreased 35%

STEM: Future Earnings Compression Signals Bearish Outlook Despite Stronger Revenue Prospects

Analysts have raised their price target on SThree by approximately £1.55, citing stronger expected revenue growth, improved long term profit margins, and a lower projected future P/E multiple. Together, these factors enhance the company’s risk adjusted return profile despite a slightly higher discount rate.

AnalystLowTarget Fair Value

UK£1.55

18.6% overvalued

Future estimation in

Growth p.a.

Decrease

Increase

Current revenue growth rate

0.60%

Professional Services revenue growth rate

0.22%

Risk Level (Discount Rate)

Our default considers factors like the company's size, volatility, profitablity and country of operation.

Decrease

Increase

Current discount rate

7.67%

Calculation

UK£33.96m

Earnings '28

6.15x

PE Ratio '28

UK£208.92m

Market Cap '28

UK£208.92m

Market Cap '28

108.65m

No. shares '28

UK£1.92

Share Price '28

UK£1.92 Share Price '28

Discounted to 2025 @ 7.67% p.a.

UK£1.54

Fair Value '25