Alfa Financial Software Holdings PLC

LSE:ALFA Stock Report

Market Cap: UK£672.1m

Alfa Financial Software Holdings Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 ALFA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

UK£1.79
Fair Value
27.0% overvalued intrinsic discount
7
Number of Analysts

Below Fair Value: ALFA (£2.27) is trading above our estimate of fair value (£1.79)

Significantly Below Fair Value: ALFA is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ALFA. This is calculated by dividing ALFA's market cap by their current earnings.
What is ALFA's PE Ratio?
PE Ratio22.7x
EarningsUK£29.60m
Market CapUK£672.08m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ALFA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average39.4x
GBG GB Group
69.3x33.98%UK£598.3m
BYIT Bytes Technology Group
16.6x5.62%UK£888.7m
CER Cerillion
30.4x11.45%UK£433.7m
IDOX IDOX
41.2x23.10%UK£256.7m
ALFA Alfa Financial Software Holdings
22.7x2.92%UK£672.1m

Price-To-Earnings vs Peers: ALFA is good value based on its Price-To-Earnings Ratio (22.7x) compared to the peer average (39.4x).

Price to Earnings Ratio vs Industry

How does ALFA's PE Ratio compare vs other companies in the GB Software Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
ALFA 22.7xIndustry Avg. 31.2xNo. of Companies5PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ALFA is good value based on its Price-To-Earnings Ratio (22.7x) compared to the UK Software industry average (31x).

Price to Earnings Ratio vs Fair Ratio

What is ALFA'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.

ALFA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.7x
Fair PE Ratio28.4x

Price-To-Earnings vs Fair Ratio: ALFA is good value based on its Price-To-Earnings Ratio (22.7x) compared to the estimated Fair Price-To-Earnings Ratio (28.4x).

Analyst Price Targets

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

The above table shows the analyst ALFA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£2.27
UK£2.90
+27.69%
6.52%UK£3.20UK£2.70n/a7
Oct ’26UK£2.32
UK£2.90
+25.21%
6.52%UK£3.20UK£2.70n/a7
Sep ’26UK£2.28
UK£2.83
+24.40%
8.32%UK£3.20UK£2.50n/a6
Aug ’26UK£2.26
UK£2.83
+25.31%
9.11%UK£3.20UK£2.50n/a5
Jul ’26UK£2.25
UK£2.83
+25.87%
9.11%UK£3.20UK£2.50n/a5
Jun ’26UK£2.39
UK£2.83
+18.49%
9.11%UK£3.20UK£2.50n/a5
May ’26UK£2.20
UK£2.83
+28.73%
9.11%UK£3.20UK£2.50n/a5
Apr ’26UK£2.18
UK£2.83
+30.21%
9.11%UK£3.20UK£2.50n/a5
Mar ’26UK£2.40
UK£2.66
+11.23%
5.25%UK£2.82UK£2.50n/a5
Feb ’26UK£2.24
UK£2.66
+19.19%
5.25%UK£2.82UK£2.50n/a5
Jan ’26UK£2.15
UK£2.56
+19.11%
4.64%UK£2.72UK£2.40n/a4
Dec ’25UK£2.21
UK£2.56
+15.87%
4.64%UK£2.72UK£2.40n/a4
Nov ’25UK£2.23
UK£2.45
+9.87%
8.03%UK£2.65UK£2.15n/a4
Oct ’25UK£1.98
UK£2.45
+23.49%
8.03%UK£2.65UK£2.15UK£2.324
Sep ’25UK£1.94
UK£2.20
+13.52%
5.33%UK£2.40UK£2.10UK£2.284
Aug ’25UK£1.98
UK£2.20
+11.22%
5.33%UK£2.40UK£2.10UK£2.264
Jul ’25UK£1.89
UK£2.20
+16.40%
5.33%UK£2.40UK£2.10UK£2.254
Jun ’25UK£1.85
UK£2.20
+18.66%
5.33%UK£2.40UK£2.10UK£2.394
May ’25UK£1.72
UK£2.20
+27.76%
5.33%UK£2.40UK£2.10UK£2.204
Apr ’25UK£1.70
UK£2.20
+29.79%
5.33%UK£2.40UK£2.10UK£2.184
Mar ’25UK£1.73
UK£2.20
+27.17%
5.33%UK£2.40UK£2.10UK£2.404
Feb ’25UK£1.71
UK£2.20
+28.65%
5.33%UK£2.40UK£2.10UK£2.244
Jan ’25UK£1.40
UK£2.20
+57.14%
5.33%UK£2.40UK£2.10UK£2.154
Dec ’24UK£1.53
UK£2.20
+43.79%
5.33%UK£2.40UK£2.10UK£2.214
Nov ’24UK£1.49
UK£2.20
+48.15%
5.33%UK£2.40UK£2.10UK£2.234
Oct ’24UK£1.85
UK£2.22
+20.14%
5.92%UK£2.40UK£2.10UK£1.983
UK£2.9
Fair Value
21.7% undervalued intrinsic discount
7
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/10/24 02:26
End of Day Share Price 2025/10/24 00:00
Earnings2025/06/30
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Alfa Financial Software Holdings PLC is covered by 10 analysts. 6 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
James GoodmanBarclays
Sven MerktBarclays
Robert ChantryBerenberg