Update shared on 10 Dec 2025
Fair value Decreased 9.69%Narrative Update
Analysts have trimmed their price target on Microlise Group from approximately £1.68 to £1.52, reflecting slightly higher discount rates, more conservative expectations for revenue growth and profit margins, and a higher projected future P/E multiple. Together, these factors point to a more cautious valuation outlook.
What's in the News
- Microlise Group issued earnings guidance for fiscal 2025, forecasting revenue of not less than £84 million, representing around 4% growth versus adjusted fiscal 2024 revenues of £81.0 million (company guidance).
- The Board declared an increased interim dividend of 0.60 pence per share, up from 0.57 pence in H1 2024, totalling approximately £0.7 million and reaffirming the Group's progressive dividend policy (company announcement).
Valuation Changes
- Fair Value Estimate has fallen moderately from £1.68 to £1.52 per share, implying a lower central valuation for Microlise Group.
- Discount Rate has risen slightly from 8.72% to 8.79%, reflecting a marginally higher required return and risk adjustment.
- Revenue Growth has been cut significantly from 5.61% to 3.49%, indicating more cautious assumptions on top line expansion.
- Net Profit Margin has been reduced meaningfully from 4.99% to 3.69%, pointing to a less optimistic view on profitability.
- Future P/E multiple has increased notably from around 50x to 65x, implying a higher valuation multiple applied to future earnings despite more conservative forecasts.
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