Update shared on 17 Dec 2025
Fair value Decreased 35%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.
Valuation Changes
- The Fair Value Target has risen by approximately £1.55, reflecting the updated assessment of SThree’s equity value.
- The Discount Rate has increased slightly from about 7.40 percent to around 7.67 percent, implying a modestly higher required return.
- Revenue Growth expectations have risen significantly from roughly 0.47 percent to about 2.65 percent, indicating a materially stronger top line outlook.
- Net Profit Margin assumptions have increased moderately from around 1.84 percent to approximately 2.28 percent, pointing to improved profitability.
- The future P/E multiple has fallen significantly from about 12.6x to roughly 6.2x, suggesting a lower valuation per unit of expected earnings.
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