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STEM: Future Earnings Multiple Should Support Resilient Margins And Upside Potential

Update shared on 03 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-52.5%
7D
1.2%

Analysts have modestly raised their price target on SThree to reflect a slightly higher assumed future earnings multiple and a marginally increased discount rate. This results in a small upward revision in the company’s estimated equity value by several pence per share.

What's in the News

  • SThree plc has scheduled a special or extraordinary shareholders meeting for October 1, 2025, to be held at level 16, 8 Bishopsgate, London EC2N 4BQ, United Kingdom (company event filing).

Valuation Changes

  • Fair value estimate remains unchanged at £2.49 per share, indicating no material reassessment of intrinsic value.
  • The discount rate has risen slightly from 7.73 percent to 7.73 percent, reflecting a marginally higher assumed cost of capital.
  • Revenue growth is effectively unchanged at approximately 0.54 percent, suggesting stable top line growth expectations.
  • The net profit margin is broadly unchanged at around 1.84 percent, implying no significant shift in profitability assumptions.
  • The future P/E has risen slightly from 13.02x to 13.03x, supporting the modest uplift in the overall equity valuation.

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.