Zinc Media Group plc

DB:YE42 Stock Report

Market Cap: €15.6m

Zinc Media Group Valuation

Is YE42 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 YE42 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: YE42 (€0.7) is trading below our estimate of fair value (€7.18)

Significantly Below Fair Value: YE42 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for YE42?

Key metric: As YE42 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for YE42. This is calculated by dividing YE42's market cap by their current revenue.
What is YE42's PS Ratio?
PS Ratio0.4x
SalesUK£36.62m
Market CapUK£13.00m

Price to Sales Ratio vs Peers

How does YE42's PS Ratio compare to its peers?

The above table shows the PS ratio for YE42 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.4x
S6P Spielvereinigung Unterhaching Fußball GmbH KGaA
5.9xn/a€11.5m
SPM Splendid Medien
0.3xn/a€12.1m
ERO tmc Content Group
1.4xn/a€9.8m
PAL Pantaflix
2x20.9%€32.2m
YE42 Zinc Media Group
0.4x8.2%€13.0m

Price-To-Sales vs Peers: YE42 is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (2.4x).

Price to Sales Ratio vs Industry

How does YE42's PS Ratio compare vs other companies in the European Entertainment Industry?

37 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.1.4x6.2%
YE42 Zinc Media Group
 0.4x8.2%US$16.29m
YE42 0.4xIndustry Avg. 1.4xNo. of Companies36PS01.63.24.86.48+
37 CompaniesEstimated GrowthMarket Cap
Industry Avg.1.4x10.8%
YE42 Zinc Media Group
 0.4xn/aUS$16.29m
No more companies

Price-To-Sales vs Industry: YE42 is good value based on its Price-To-Sales Ratio (0.4x) compared to the European Entertainment industry average (1.4x).

Price to Sales Ratio vs Fair Ratio

What is YE42'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.

YE42 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ratio0.5x

Price-To-Sales vs Fair Ratio: YE42 is good value based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (0.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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