Tech Competition And Cloud Shifts Will Erode Margins

AN

AnalystLowTarget

Not Invested

Community Contributor

Published

03 Jul 25

Updated

07 Jun 26

Views

50

07 Jun

UK£18.06

AnalystLowTarget's Fair Value

UK£13.50

33.8% overvalued

1Y

-2.9%

7D

-3.9%

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1Y

-2.9%

7D

-3.9%

You can edit this narrative until Jun 8 2:10 PM. Then, changes will post as Updates.

Author's Valuation

UK£13.533.8% overvalued

AnalystLowTarget Fair Value

Shared on 07 Jun 26

Fair value Increased 12%

SCT: Higher Interim Dividend Will Continue To Mask Weakening Earnings Quality

Softcat lifts its interim dividend, but the update flags that the business’s earnings may be getting less reliable beneath the surface. Analysts also raise what they think the shares are worth after tweaking their expectations for sales, profit, and what investors might be willing to pay for the company in future.

0 views

Shared on 24 May 26

SCT: Rising Dividend Will Continue To Mask Weakening Earnings Quality

Softcat raises its interim dividend again, giving shareholders more cash back even as questions linger about how strong the underlying business really is. The latest analyst assumptions also lean on slightly better profitability and a lower return hurdle, which helps support the current view of what the shares are worth.

2 views

Shared on 02 May 26

SCT: Rich Dividend Payout Will Continue To Mask Weak Earnings Power

Analysts have raised their Softcat price target by £0.10 to reflect slightly higher assumed revenue growth and a marginally higher forward P/E. This is partly offset by a small reduction in expected profit margins and a modest increase in the discount rate.

3 views

Shared on 18 Apr 26

Fair value Decreased 17%

SCT: Softer Revenue Outlook Will Limit Appeal Of Dividend Returns

Analysts have reduced their Softcat price target from £14.50 to £12.10. This reflects updated views on softer revenue growth assumptions, a slightly higher discount rate, and a lower future P/E multiple, partly offset by a modestly improved profit margin outlook.

1 view

Shared on 20 Feb 26

SCT: Buybacks And Dividends Will Drive Attractive Future Return Profile

Analysts have kept their Softcat price target broadly unchanged at £14.50, citing relatively stable assumptions for the discount rate, revenue growth, profit margin and future P/E, which together point to a similar assessment of long term value. What's in the News Softcat began a share repurchase program on January 8, 2026, following approval at the December 15, 2025 AGM.

5 views

Shared on 06 Feb 26

SCT: Buybacks And Dividends Will Support Attractive Future Return Profile

Analysts have lifted their price target for Softcat to £14.50, reflecting slightly higher assumed revenue growth, a small improvement in profit margin, and a marginally lower discount rate, alongside a similar future P/E expectation. What's in the News Softcat began a share repurchase program on 8 January 2026, authorized to buy back up to 19,994,626 shares, with repurchased shares either cancelled or held in treasury (AGM resolution, 15 December 2025).

6 views

Shared on 23 Jan 26

SCT: Buybacks And Dividends Will Shape Future Fairly Valued Share Appeal

Analysts have nudged their price target on Softcat slightly higher to reflect modest adjustments to the discount rate, revenue growth assumptions, profit margin and future P/E expectations, indicating a marginally more constructive view on the company’s valuation drivers. What's in the News Softcat began a share repurchase program on January 8, 2026, following shareholder approval at the December 15, 2025 AGM.

0 views

Shared on 09 Jan 26

Fair value Increased 3.57%

SCT: Dividend Returns And Steady Outlook Will Shape Future Share Appeal

Analysts have raised their Softcat price target from £14.00 to £14.50, reflecting updated assumptions on discount rates, revenue growth, profit margins and future price-to-earnings (P/E) expectations. What's in the News Approval of a final dividend of 20.4 pence per ordinary share at the 15 December 2025 AGM.

5 views

Valuator

Company Info

Notes

AnalystLowTarget Fair Value

UK£13.5

33.8% overvalued

Future estimation in

Revenue

Profit Margin

Future PE

Growth p.a.

%

Decrease

Increase

Forecast revenue growth rate

5.23%

Historical revenue growth rate

10.54%

IT revenue growth rate

0.71%

Risk Level (Discount Rate)

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

%

0

Decrease

Increase

Current discount rate

9.18%

Calculation

UK£189.55m

Earnings '29

x

18.53x

PE Ratio '29

=

UK£3.51b

Market Cap '29

UK£3.51b

Market Cap '29

/

200.78m

No. shares '29

=

UK£17.50

Share Price '29

UK£17.50 Share Price '29

Discounted to 2026 @ 9.17% p.a.

=

UK£13.45

Fair Value '26