Thermon Group Holdings, Inc.

DB:8TG Stock Report

Market Cap: €1.0b

Thermon Group Holdings Valuation

Is 8TG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 8TG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 8TG (€30) is trading below our estimate of fair value (€42)

Significantly Below Fair Value: 8TG is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 8TG?

Key metric: As 8TG is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 8TG. This is calculated by dividing 8TG's market cap by their current earnings.
What is 8TG's PE Ratio?
PE Ratio24.5x
EarningsUS$43.93m
Market CapUS$1.08b

Price to Earnings Ratio vs Peers

How does 8TG's PE Ratio compare to its peers?

The above table shows the PE ratio for 8TG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.6x
SGL SGL Carbon
7.5x17.7%€514.1m
F3C SFC Energy
12.7x4.2%€296.9m
OSR OSRAM Licht
82.2xn/a€4.9b
EKT Energiekontor
7.8x9.1%€580.9m
8TG Thermon Group Holdings
24.5x21.1%€1.1b

Price-To-Earnings vs Peers: 8TG is good value based on its Price-To-Earnings Ratio (24.5x) compared to the peer average (27.6x).


Price to Earnings Ratio vs Industry

How does 8TG's PE Ratio compare vs other companies in the European Electrical Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
8TG 24.5xIndustry Avg. 16.8xNo. of Companies9PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 8TG is expensive based on its Price-To-Earnings Ratio (24.5x) compared to the European Electrical industry average (16.9x).


Price to Earnings Ratio vs Fair Ratio

What is 8TG'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.

8TG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.5x
Fair PE Ratio17.7x

Price-To-Earnings vs Fair Ratio: 8TG is expensive based on its Price-To-Earnings Ratio (24.5x) compared to the estimated Fair Price-To-Earnings Ratio (17.7x).


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 8TG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€30.20
€33.03
+9.4%
6.2%€34.92€30.20n/a3
Nov ’25€23.60
€34.20
+44.9%
11.0%€38.48€29.32n/a3
Oct ’25€26.40
€34.20
+29.6%
11.0%€38.48€29.32n/a3
Sep ’25€28.20
€34.20
+21.3%
11.0%€38.48€29.32n/a3
Aug ’25€28.60
€34.52
+20.7%
11.0%€38.83€29.59n/a3
Jul ’25€27.40
€34.47
+25.8%
11.0%€38.78€29.55n/a3
Jun ’25€30.80
€34.47
+11.9%
11.0%€38.78€29.55n/a3
May ’25€29.80
€36.06
+21.0%
17.6%€44.77€29.85n/a3
Apr ’25€30.00
€31.31
+4.4%
5.9%€33.16€29.47n/a2

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


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