M&C Saatchi plc

DB:IZH Stock Report

Market Cap: €285.4m

M&C Saatchi Valuation

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

Below Fair Value: IZH (€2.28) is trading below our estimate of fair value (€5.76)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for IZH. This is calculated by dividing IZH's market cap by their current earnings.
What is IZH's PE Ratio?
PE Ratio21.6x
EarningsUK£10.96m
Market CapUK£237.18m

Price to Earnings Ratio vs Peers

How does IZH's PE Ratio compare to its peers?

The above table shows the PE ratio for IZH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average31.3x
M8G Verve Group
14.9x22.0%€762.2m
SYZ SYZYGY
15.9x20.8%€37.8m
SAX Ströer SE KGaA
23.2x29.2%€2.7b
APM ad pepper media International
71.2x9.4%€37.3m
IZH M&C Saatchi
21.4x27.4%€234.7m

Price-To-Earnings vs Peers: IZH is good value based on its Price-To-Earnings Ratio (21.4x) compared to the peer average (31.3x).

Price to Earnings Ratio vs Industry

How does IZH's PE Ratio compare vs other companies in the European Media Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
IZH 21.6xIndustry Avg. 12.2xNo. of Companies17PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IZH is expensive based on its Price-To-Earnings Ratio (21.4x) compared to the European Media industry average (12.2x).

Price to Earnings Ratio vs Fair Ratio

What is IZH'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.

IZH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.6x
Fair PE Ratio17.9x

Price-To-Earnings vs Fair Ratio: IZH is expensive based on its Price-To-Earnings Ratio (21.4x) compared to the estimated Fair Price-To-Earnings Ratio (17.9x).

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 IZH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€2.28
€2.85
+24.9%
8.2%€3.16€2.51n/a4
Nov ’25€2.40
€2.85
+18.7%
8.2%€3.16€2.51n/a4
Oct ’25€2.12
€2.85
+34.3%
8.2%€3.16€2.51n/a4
Sep ’25€2.44
€2.74
+12.3%
11.3%€3.13€2.27n/a4
Aug ’25€2.52
€2.74
+8.7%
11.3%€3.13€2.27n/a4
Jul ’25€2.24
€2.69
+20.1%
13.0%€3.11€2.26n/a3
Jun ’25€2.34
€2.69
+15.0%
13.0%€3.11€2.26n/a3
May ’25€2.08
€2.52
+21.0%
20.0%€3.10€1.87n/a3
Apr ’25€1.99
€2.52
+26.4%
20.0%€3.10€1.87n/a3
Mar ’25€1.97
€2.52
+27.7%
20.0%€3.10€1.87n/a3
Feb ’25€2.06
€2.30
+11.6%
13.3%€2.57€1.87n/a3
Jan ’25€1.81
€2.20
+21.6%
18.7%€2.55€1.62n/a3
Dec ’24€1.57
€2.20
+40.2%
18.7%€2.55€1.62n/a3
Nov ’24€1.37
€2.20
+60.7%
18.7%€2.55€1.62€2.403
Oct ’24€1.57
€2.20
+40.2%
18.7%€2.55€1.62€2.123
Sep ’24€1.40
€2.47
+76.6%
21.3%€2.95€1.74€2.443
Aug ’24€1.52
€2.47
+62.6%
21.3%€2.95€1.74€2.523
Jul ’24€1.72
€2.92
+69.9%
4.3%€3.04€2.75€2.243
Jun ’24€1.93
€2.98
+54.5%
1.8%€3.06€2.94€2.343
May ’24€1.85
€2.98
+61.1%
1.8%€3.06€2.94€2.083
Apr ’24€2.12
€2.98
+40.6%
1.8%€3.06€2.94€1.993
Mar ’24€2.06
€2.98
+44.7%
1.8%€3.06€2.94€1.973
Feb ’24€1.78
€2.61
+46.5%
10.6%€2.95€2.27€2.063
Jan ’24€1.63
€2.81
+72.6%
5.0%€2.98€2.63€1.813
Dec ’23€1.66
€2.81
+69.5%
5.0%€2.98€2.63€1.573

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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