Funding Circle Holdings plc

DB:FCA Stock Report

Market Cap: €524.5m

Funding Circle Holdings Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: Insufficient data to calculate FCA's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate FCA's fair value for valuation analysis.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for FCA. This is calculated by dividing FCA's market cap by their current revenue.
What is FCA's PS Ratio?
PS Ratio2.3x
SalesUK£187.60m
Market CapUK£437.06m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for FCA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.4x
OT8 Eleving Group
1.1x6.4%€190.9m
E4I Multitude
0.9x24.0%€103.6m
PBB Deutsche Pfandbriefbank
1.8x12.0%€671.6m
DBAN Deutsche Beteiligungs
5.7x41.7%€422.7m
FCA Funding Circle Holdings
2.3x9.0%€437.1m

Price-To-Sales vs Peers: FCA is good value based on its Price-To-Sales Ratio (2.3x) compared to the peer average (2.4x).

Price to Sales Ratio vs Industry

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

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
FCA 2.3xIndustry Avg. 1.6xNo. of Companies7PS01.63.24.86.48+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: FCA is expensive based on its Price-To-Sales Ratio (2.3x) compared to the European Consumer Finance industry average (1.7x).

Price to Sales Ratio vs Fair Ratio

What is FCA'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.

FCA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.3x
Fair PS Ratio1.6x

Price-To-Sales vs Fair Ratio: FCA is expensive based on its Price-To-Sales Ratio (2.3x) compared to the estimated Fair Price-To-Sales Ratio (1.6x).

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 FCA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€1.55
€1.96
+26.5%
7.6%€2.16€1.80n/a3
Nov ’25€1.56
€1.96
+25.7%
7.6%€2.16€1.80n/a3
Oct ’25€1.65
€1.96
+18.9%
7.6%€2.16€1.80n/a3
Sep ’25€1.21
€1.47
+21.3%
29.8%€2.00€0.82n/a4
Aug ’25€1.31
€1.60
+22.1%
37.7%€2.49€0.83n/a4
Jul ’25€1.17
€1.60
+36.7%
37.7%€2.49€0.83n/a4
Jun ’25€1.05
€1.54
+47.0%
57.9%€2.94€0.71n/a4
May ’25€0.85
€1.47
+73.3%
68.9%€2.91€0.70n/a3
Apr ’25€0.52
€1.46
+184.4%
60.5%€2.93€0.70n/a4
Mar ’25€0.32
€1.48
+363.2%
51.8%€2.92€0.82n/a5
Feb ’25€0.36
€1.39
+282.6%
52.5%€2.92€0.82n/a6
Jan ’25€0.46
€1.37
+198.6%
52.5%€2.88€0.81n/a6
Dec ’24€0.42
€1.37
+224.0%
52.5%€2.88€0.81n/a6
Nov ’24€0.37
€1.37
+273.3%
52.5%€2.88€0.81€1.566
Oct ’24€0.44
€1.37
+210.8%
52.5%€2.88€0.81€1.656
Sep ’24€0.49
€1.34
+171.5%
51.8%€2.91€0.72€1.217
Aug ’24€0.56
€1.34
+140.7%
51.8%€2.91€0.72€1.317
Jul ’24€0.62
€1.34
+115.6%
51.8%€2.91€0.72€1.177
Jun ’24€0.61
€1.30
+113.2%
51.8%€2.83€0.70€1.057
May ’24€0.56
€1.30
+132.3%
51.8%€2.83€0.70€0.857
Apr ’24€0.56
€1.29
+130.4%
55.8%€2.83€0.75€0.526
Mar ’24€0.66
€1.57
+139.5%
64.8%€3.75€0.75€0.326
Feb ’24€0.66
€1.57
+139.4%
64.8%€3.75€0.75€0.366
Jan ’24€0.58
€1.70
+191.0%
71.7%€4.35€0.77€0.466
Dec ’23€0.59
€1.70
+188.5%
71.7%€4.35€0.77€0.426
Nov ’23€0.51
€1.70
+237.1%
71.7%€4.35€0.77€0.376

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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