Fintel Valuation

Q: What is the Fair Price of FNTL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

FNTL (£2.83) is trading below our estimate of [[fair value]] (£4.47)

Is FNTL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of FNTL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FNTL (£2.83) is trading below our estimate of fair value (£4.47)

Significantly Below Fair Value: FNTL is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FNTL?

Key metric: As FNTL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for FNTL. This is calculated by dividing FNTL's market cap by their current earnings.
What is FNTL's PE Ratio?
PE Ratio	50.3x
Earnings	UK£5.90m
Market Cap	UK£294.85m

FNTL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	4.4x
Enterprise Value/EBITDA	17.1x
PEG Ratio	1.5x

Price to Earnings Ratio vs Peers

How does FNTL's PE Ratio compare to its peers?

The above table shows the PE ratio for FNTL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	26.5x
DWF DWF Group	25.4x	47.9%	UK£316.4m
WIL Wilmington	20.4x	7.3%	UK£350.0m
SAG Science Group	34.8x	18.3%	UK£210.2m
KEYS Keystone Law Group	25.3x	4.5%	UK£199.0m
FNTL Fintel	50x	34.0%	UK£294.9m

Price-To-Earnings vs Peers: FNTL is expensive based on its Price-To-Earnings Ratio (50x) compared to the peer average (26.8x).

Price to Earnings Ratio vs Industry

How does FNTL's PE Ratio compare vs other companies in the GB Professional Services Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap
IBPO iEnergizer	1.7x	n/a	US$140.06m
TEK Tekcapital	1.5x	n/a	US$20.36m

No more companies available in this PE range

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: FNTL is expensive based on its Price-To-Earnings Ratio (50x) compared to the UK Professional Services industry average (23.1x).

Price to Earnings Ratio vs Fair Ratio

What is FNTL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FNTL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	50.3x
Fair PE Ratio	27x

Price-To-Earnings vs Fair Ratio: FNTL is expensive based on its Price-To-Earnings Ratio (50x) compared to the estimated Fair Price-To-Earnings Ratio (27x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.