Latitude Group Holdings Limited

ASX:LFS Stock Report

Market Cap: AU$1.2b

Latitude Group Holdings Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: LFS (A$1.15) is trading above our estimate of fair value (A$0.43)

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

Key Valuation Metric

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

Key metric: As LFS is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for LFS. This is calculated by dividing LFS's market cap by their current revenue.
What is LFS's PS Ratio?
PS Ratio2.8x
SalesAU$423.10m
Market CapAU$1.20b

Price to Sales Ratio vs Peers

How does LFS's PS Ratio compare to its peers?

The above table shows the PS ratio for LFS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.7x
CCP Credit Corp Group
3.2x9.3%AU$1.2b
FPR FleetPartners Group
1x4.5%AU$746.4m
HUM Humm Group
1.6x13.1%AU$386.7m
SVR Solvar
1.2x1.6%AU$254.0m
LFS Latitude Group Holdings
2.8x22.9%AU$1.2b

Price-To-Sales vs Peers: LFS is expensive based on its Price-To-Sales Ratio (2.8x) compared to the peer average (1.7x).

Price to Sales Ratio vs Industry

How does LFS's PS Ratio compare vs other companies in the AU Consumer Finance Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
CLH Collection House
0.2xn/aUS$6.30m
LBY Laybuy Group Holdings
0.2xn/aUS$5.65m
PYR Navalo Financial Services Group
0.2xn/aUS$2.65m
No more companies available in this PS range
LFS 2.8xIndustry Avg. 2.4xNo. of Companies3PS012345+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: LFS is expensive based on its Price-To-Sales Ratio (2.8x) compared to the Global Consumer Finance industry average (2.4x).

Price to Sales Ratio vs Fair Ratio

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

LFS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.8x
Fair PS Ratio5.2x

Price-To-Sales vs Fair Ratio: LFS is good value based on its Price-To-Sales Ratio (2.8x) compared to the estimated Fair Price-To-Sales Ratio (5.2x).

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 LFS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$1.15
AU$0.98
-14.5%
12.7%AU$1.15AU$0.85n/a3
Nov ’25AU$1.16
AU$0.98
-14.9%
12.7%AU$1.15AU$0.85n/a3
Oct ’25AU$1.17
AU$0.98
-15.6%
12.7%AU$1.15AU$0.85n/a3
Sep ’25AU$1.16
AU$0.99
-14.7%
12.5%AU$1.15AU$0.85n/a3
Aug ’25AU$1.17
AU$0.99
-15.4%
12.5%AU$1.15AU$0.85n/a3
Jul ’25AU$1.15
AU$0.99
-13.9%
12.5%AU$1.15AU$0.85n/a3
Jun ’25AU$1.16
AU$0.99
-14.7%
12.5%AU$1.15AU$0.85n/a3
May ’25AU$1.16
AU$0.99
-14.7%
12.5%AU$1.15AU$0.85n/a3
Apr ’25AU$1.17
AU$0.99
-15.0%
12.5%AU$1.15AU$0.85n/a3
Mar ’25AU$1.15
AU$0.99
-13.9%
12.5%AU$1.15AU$0.85n/a3
Feb ’25AU$1.17
AU$0.93
-20.2%
6.3%AU$0.99AU$0.85n/a3
Jan ’25AU$1.17
AU$0.93
-20.2%
6.3%AU$0.99AU$0.85n/a3
Dec ’24AU$1.17
AU$0.99
-15.0%
9.9%AU$1.10AU$0.85n/a4
Nov ’24AU$1.18
AU$0.99
-15.9%
8.8%AU$1.10AU$0.85AU$1.165
Oct ’24AU$1.18
AU$0.99
-15.9%
8.8%AU$1.10AU$0.85AU$1.175
Sep ’24AU$1.19
AU$0.99
-16.6%
8.8%AU$1.10AU$0.85AU$1.165
Aug ’24AU$1.19
AU$0.95
-20.2%
3.3%AU$1.00AU$0.90AU$1.175
Jul ’24AU$1.22
AU$0.97
-20.2%
7.0%AU$1.10AU$0.90AU$1.155
Jun ’24AU$1.25
AU$0.97
-22.4%
7.0%AU$1.10AU$0.90AU$1.165
May ’24AU$1.29
AU$1.09
-15.5%
7.9%AU$1.20AU$0.95AU$1.165
Apr ’24AU$1.20
AU$1.14
-5.0%
10.9%AU$1.30AU$0.95AU$1.175
Mar ’24AU$1.14
AU$1.38
+21.7%
29.9%AU$2.29AU$1.05AU$1.156
Feb ’24AU$1.46
AU$1.64
+12.3%
31.0%AU$2.40AU$1.10AU$1.176
Jan ’24AU$1.31
AU$1.69
+29.3%
32.2%AU$2.40AU$1.10AU$1.175
Dec ’23AU$1.31
AU$1.77
+35.3%
32.6%AU$2.40AU$1.10AU$1.174
Nov ’23AU$1.27
AU$2.00
+57.2%
24.8%AU$2.40AU$1.30AU$1.183

Analyst Forecast: Target price is lower than the current share price.

Discover undervalued companies

Navigator Global Investments

AU$808.6m

HFA Holdings Limited operates as a fund management company in Australia.

NGI

AU$1.65

7D

2.5%

1Y

36.4%

Liberty Financial Group

AU$972.2m

Engages in the financial services business in Australia and New Zealand.

LFG

AU$3.20

7D

-4.8%

1Y

-21.0%

OFX Group

AU$320.9m

Provides international payments and foreign exchange services in the Asia Pacific, North America, Europe, the Middle East, and Africa.

OFX

AU$1.34

7D

-5.0%

1Y

-2.5%