An Intrinsic Calculation For Learning Technologies Group plc (LON:LTG) Suggests It's 45% Undervalued
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Learning Technologies...
U.K. (FTSE) Application Software Industry Analysis
UpdatedMay 26, 2022
DataAggregated Company Financials
Companies55
- 7D2.1%
- 3M-6.9%
- 1Y-25.3%
- YTD-26.1%
The Application Software industry is up 2.1% in the last week, with AVEVA Group up 4.3%. In contrast, the industry has lost 25% in the last 12 months. Looking forward, earnings are forecast to grow by 26% annually.
Industry Valuation and Performance
Has the U.K. Application Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sat, 28 May 2022 | UK£22.9b | UK£7.6b | UK£24.4m | 32.4x |
| Mon, 25 Apr 2022 | UK£25.5b | UK£7.4b | UK£21.2m | 36.8x |
| Wed, 23 Mar 2022 | UK£25.0b | UK£7.3b | -UK£9,506,638.00 | 36.3x |
| Fri, 18 Feb 2022 | UK£26.1b | UK£7.2b | UK£3.7m | 44.1x |
| Sun, 16 Jan 2022 | UK£28.9b | UK£7.2b | -UK£1,249,840,769.00 | 47.3x |
| Tue, 14 Dec 2021 | UK£30.5b | UK£7.3b | -UK£1,302,809,344.00 | 50.1x |
| Thu, 11 Nov 2021 | UK£30.6b | UK£7.1b | -UK£1,262,095,743.00 | 58.6x |
| Sat, 09 Oct 2021 | UK£30.4b | UK£7.1b | -UK£1,250,382,844.00 | 57.3x |
| Mon, 06 Sep 2021 | UK£34.3b | UK£7.0b | -UK£1,209,711,223.47 | 57.3x |
| Wed, 04 Aug 2021 | UK£32.0b | UK£7.0b | -UK£1,222,498,641.73 | 56.5x |
| Sat, 08 May 2021 | UK£30.0b | UK£6.9b | -UK£1,228,804,046.56 | 50.1x |
| Tue, 09 Feb 2021 | UK£27.4b | UK£6.9b | -UK£1,493,355,738.16 | 45.1x |
| Mon, 02 Nov 2020 | UK£21.5b | UK£6.6b | -UK£1,922,977,319.40 | 39.5x |
| Thu, 06 Aug 2020 | UK£21.7b | UK£6.7b | -UK£1,118,926,797.42 | 34.2x |
| Sun, 10 May 2020 | UK£20.1b | UK£6.9b | -UK£573,623,930.56 | 29.8x |
| Sat, 01 Feb 2020 | UK£25.8b | UK£6.8b | UK£13.5m | 38.4x |
| Tue, 05 Nov 2019 | UK£23.6b | UK£6.9b | UK£343.2m | 29.4x |
| Fri, 09 Aug 2019 | UK£26.2b | UK£6.6b | UK£228.8m | 36.5x |
Median PE Ratio
35.3x
Current Industry PE
- Investors are relatively neutral on the industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 40.5x.
Past Earnings Growth
- The earnings for companies in the Application Software industry have declined 53% per year over the last three years.
- Meanwhile revenues for these companies have grown 5.4% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Comparison
How does U.K. Application Software compare with similar industries?
| GB Market | 1.04% | |
| Tech | 1.60% | |
| Software | 1.49% | |
| Application Software | 2.12% | |
| Systems Software | 0.058% | |
Industry PEThere is insufficient data on the sub-industries of this industry.
Forecasted GrowthThere is insufficient data on the sub-industries of this industry.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| AVV AVEVA Group | UK£22.73 | 4.3% +UK£283.4m | -35.0% | PS7.1x | |
| LTG Learning Technologies Group | UK£1.32 | 9.8% +UK£92.9m | -22.5% | PS69.6x | |
| GBG GB Group | UK£5.61 | 6.6% +UK£86.9m | -40.0% | PS53.7x | |
| BYIT Bytes Technology Group | UK£4.58 | 7.9% +UK£80.5m | -8.4% | PS33.4x | |
| SGE Sage Group | UK£6.73 | 0.9% +UK£61.1m | 2.5% | PS23.5x |
