Dowlais Group plc

DB:6O7 Stock Report

Market Cap: €901.3m

Dowlais Group Valuation

Is 6O7 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-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 6O7 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6O7 (€0.67) is trading below our estimate of fair value (€2.35)

Significantly Below Fair Value: 6O7 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6O7?

Key metric: As 6O7 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 6O7. This is calculated by dividing 6O7's market cap by their current revenue.
What is 6O7's PS Ratio?
PS Ratio0.2x
SalesUK£4.60b
Market CapUK£751.96m

Price to Sales Ratio vs Peers

How does 6O7's PS Ratio compare to its peers?

The above table shows the PS ratio for 6O7 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.3x
SFQ SAF-Holland
0.3x4.9%€618.3m
ZIL2 ElringKlinger
0.1x1.9%€247.4m
NVM Novem Group
0.4x4.1%€254.7m
SHA0 Schaeffler
0.3x16.7%€4.2b
6O7 Dowlais Group
0.2x-0.6%€752.0m

Price-To-Sales vs Peers: 6O7 is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (0.3x).

Price to Sales Ratio vs Industry

How does 6O7's PS Ratio compare vs other companies in the European Auto Components Industry?

8 CompaniesPrice / SalesEstimated GrowthMarket Cap
6O7 0.2xIndustry Avg. 0.3xNo. of Companies15PS00.40.81.21.62+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 6O7 is good value based on its Price-To-Sales Ratio (0.2x) compared to the European Auto Components industry average (0.3x).

Price to Sales Ratio vs Fair Ratio

What is 6O7'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.

6O7 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ratio0.1x

Price-To-Sales vs Fair Ratio: 6O7 is expensive based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (0.1x).

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 6O7 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€0.67
€0.97
+46.2%
19.6%€1.20€0.70n/a10
Nov ’25€0.57
€1.00
+75.5%
17.8%€1.19€0.69n/a10
Oct ’25€0.69
€1.12
+61.2%
19.8%€1.50€0.74n/a10
Sep ’25€0.76
€1.10
+45.9%
20.3%€1.47€0.73n/a10
Aug ’25€0.74
€1.34
+80.1%
23.2%€1.96€0.93n/a10
Jul ’25€0.85
€1.36
+58.7%
23.4%€1.94€0.92n/a10
Jun ’25€0.81
€1.37
+70.2%
22.0%€1.94€0.93n/a10
May ’25€0.96
€1.46
+51.3%
23.8%€2.04€0.92n/a10
Apr ’25€0.91
€1.46
+61.3%
23.6%€2.05€0.92n/a10
Mar ’25€1.05
€1.61
+52.9%
27.0%€2.34€0.97n/a10
Feb ’25€1.06
€1.67
+57.5%
26.6%€2.34€0.97n/a9
Jan ’25€1.21
€1.68
+38.6%
25.9%€2.32€1.04n/a9
Dec ’24€1.17
€1.69
+43.9%
23.0%€2.28€1.11n/a9
Nov ’24€1.18
€1.73
+46.4%
23.2%€2.29€1.11€0.579
Oct ’24€1.26
€1.87
+48.4%
22.6%€2.54€1.12€0.699
Sep ’24€1.34
€1.92
+43.7%
23.5%€2.56€1.13€0.768
Aug ’24€1.44
€1.92
+33.7%
23.3%€2.56€1.13€0.748
Jul ’24€1.46
€1.98
+35.2%
18.1%€2.58€1.35€0.858
Jun ’24€1.53
€1.99
+30.0%
18.8%€2.56€1.34€0.817
May ’24€1.47
€1.93
+31.1%
12.3%€2.26€1.63€0.964

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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