PolyNovo Limited

DB:MFJ Stock Report

Market Cap: €853.5m

PolyNovo Valuation

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

Below Fair Value: MFJ (€1.19) is trading below our estimate of fair value (€1.99)

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

Key Valuation Metric

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

Key metric: As MFJ is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for MFJ. This is calculated by dividing MFJ's market cap by their current revenue.
What is MFJ's PS Ratio?
PS Ratio13.2x
SalesAU$103.23m
Market CapAU$1.37b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for MFJ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1x
PHH2 Paul Hartmann
0.3xn/a€742.3m
EUZ Eckert & Ziegler
3x6.3%€831.3m
DRW3 Drägerwerk KGaA
0.2x4.2%€796.1m
RHK RHÖN-KLINIKUM
0.5x2.1%€836.7m
MFJ PolyNovo
13.2x17.5%€1.4b

Price-To-Sales vs Peers: MFJ is expensive based on its Price-To-Sales Ratio (13.2x) compared to the peer average (1x).

Price to Sales Ratio vs Industry

How does MFJ's PS Ratio compare vs other companies in the DE Medical Equipment Industry?

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
DRW3 Drägerwerk KGaA
0.2x4.2%US$828.96m
PHH2 Paul Hartmann
0.3xn/aUS$773.00m
U4W0 Quotient
0.07xn/aUS$2.78m
MF6 MagForce
0.3xn/aUS$404.27k
No more companies available in this PS range
MFJ 13.2xIndustry Avg. 3.4xNo. of Companies4PS01.63.24.86.48+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: MFJ is expensive based on its Price-To-Sales Ratio (13.2x) compared to the European Medical Equipment industry average (3.4x).

Price to Sales Ratio vs Fair Ratio

What is MFJ'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.

MFJ PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio13.2x
Fair PS Ratio5.8x

Price-To-Sales vs Fair Ratio: MFJ is expensive based on its Price-To-Sales Ratio (13.2x) compared to the estimated Fair Price-To-Sales Ratio (5.8x).

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 MFJ forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€1.19
€1.59
+33.3%
22.7%€1.85€0.65n/a9
Nov ’25€1.18
€1.59
+34.5%
22.7%€1.85€0.65n/a9
Oct ’25€1.61
€1.58
-2.1%
23.6%€1.82€0.64n/a8
Sep ’25€1.40
€1.60
+14.0%
23.6%€1.84€0.64n/a8
Aug ’25€1.61
€1.43
-11.1%
23.2%€1.69€0.64n/a8
Jul ’25€1.41
€1.33
-5.5%
23.6%€1.71€0.62n/a8
Jun ’25€1.34
€1.27
-5.5%
22.8%€1.65€0.60n/a8
May ’25€1.21
€1.27
+4.7%
22.8%€1.65€0.60n/a8
Apr ’25€1.28
€1.27
-1.0%
22.8%€1.65€0.60n/a8
Mar ’25€1.29
€1.27
-1.8%
22.8%€1.65€0.60n/a8
Feb ’25€1.11
€1.18
+6.1%
26.1%€1.75€0.60n/a8
Jan ’25€0.99
€1.12
+12.6%
29.4%€1.67€0.62n/a8
Dec ’24€0.81
€1.13
+38.3%
30.0%€1.62€0.60n/a8
Nov ’24€0.69
€1.13
+63.4%
30.0%€1.62€0.60€1.188
Oct ’24€0.77
€1.14
+47.5%
30.0%€1.63€0.61€1.618
Sep ’24€0.81
€1.25
+53.3%
29.0%€1.72€0.64€1.406
Aug ’24€0.93
€1.37
+46.9%
31.9%€1.76€0.54€1.616
Jul ’24€0.92
€1.37
+49.3%
31.9%€1.76€0.54€1.416
Jun ’24€0.88
€1.37
+55.3%
31.9%€1.76€0.54€1.346
May ’24€0.96
€1.61
+67.7%
14.4%€1.85€1.21€1.216
Apr ’24€1.08
€1.61
+49.1%
14.4%€1.85€1.21€1.286
Mar ’24€1.46
€1.61
+10.3%
14.4%€1.85€1.21€1.296
Feb ’24€1.59
€1.34
-15.6%
25.9%€1.83€0.77€1.115
Jan ’24€1.27
€1.26
-0.5%
21.0%€1.47€0.77€0.995
Dec ’23€1.29
€1.23
-4.7%
22.6%€1.49€0.78€0.814
Nov ’23€1.29
€1.09
-15.2%
17.0%€1.22€0.77€0.696

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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