THG Plc

DB:HG0 Stock Report

Market Cap: €786.8m

THG Valuation

Is HG0 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 HG0 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HG0 (€0.51) is trading above our estimate of fair value (€0.05)

Significantly Below Fair Value: HG0 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HG0?

Key metric: As HG0 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for HG0. This is calculated by dividing HG0's market cap by their current revenue.
What is HG0's PS Ratio?
PS Ratio0.3x
SalesUK£2.01b
Market CapUK£656.38m

Price to Sales Ratio vs Peers

How does HG0's PS Ratio compare to its peers?

The above table shows the PS ratio for HG0 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.6x
ECK LUDWIG BECK am Rathauseck - Textilhaus Feldmeier
0.9xn/a€63.9m
YOU About You Holding
0.3x7.7%€564.7m
MDN Medion
0.9xn/a€652.3m
HBH HORNBACH Holding KGaA
0.2x3.6%€1.3b
HG0 THG
0.3x4.2%€656.4m

Price-To-Sales vs Peers: HG0 is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (0.6x).

Price to Sales Ratio vs Industry

How does HG0's PS Ratio compare vs other companies in the European Multiline Retail Industry?

0 CompaniesPrice / SalesEstimated GrowthMarket Cap
HG0 0.3xIndustry Avg. 0.8xNo. of Companies3PS00.40.81.21.62+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: HG0 is good value based on its Price-To-Sales Ratio (0.3x) compared to the European Multiline Retail industry average (0.8x).

Price to Sales Ratio vs Fair Ratio

What is HG0'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.

HG0 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ratio0.3x

Price-To-Sales vs Fair Ratio: HG0 is expensive based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (0.3x).

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 HG0 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€0.51
€1.02
+100.1%
28.6%€1.70€0.64n/a10
Nov ’25€0.53
€1.02
+90.6%
28.6%€1.69€0.64n/a10
Oct ’25€0.64
€1.11
+73.7%
31.4%€1.69€0.64n/a10
Sep ’25€0.65
€1.31
+101.5%
40.2%€2.60€0.63n/a10
Aug ’25€0.73
€1.31
+80.1%
40.9%€2.62€0.58n/a10
Jul ’25€0.72
€1.26
+74.5%
41.4%€2.58€0.56n/a11
Jun ’25€0.82
€1.26
+53.6%
41.4%€2.58€0.56n/a11
May ’25€0.73
€1.24
+69.5%
42.5%€2.58€0.56n/a11
Apr ’25€0.77
€1.22
+59.8%
42.6%€2.56€0.56n/a11
Mar ’25€0.71
€1.19
+66.1%
44.7%€2.57€0.56n/a10
Feb ’25€0.75
€1.13
+50.4%
47.2%€2.57€0.56n/a11
Jan ’25€0.97
€1.12
+16.3%
47.1%€2.56€0.56n/a11
Dec ’24€0.87
€1.10
+26.4%
49.6%€2.54€0.58n/a10
Nov ’24€0.76
€1.10
+44.1%
49.6%€2.53€0.57€0.5310
Oct ’24€0.78
€1.11
+42.6%
49.4%€2.54€0.58€0.6410
Sep ’24€1.13
€1.06
-7.0%
53.3%€2.56€0.58€0.6510
Aug ’24€1.16
€1.11
-4.1%
51.2%€2.55€0.58€0.7311
Jul ’24€0.89
€1.08
+21.5%
53.7%€2.55€0.41€0.7211
Jun ’24€0.66
€1.04
+57.5%
62.1%€2.54€0.40€0.829
May ’24€1.07
€1.01
-5.5%
67.8%€2.49€0.40€0.738
Apr ’24€0.72
€0.77
+5.6%
44.7%€1.69€0.39€0.7711
Mar ’24€0.65
€0.77
+18.7%
44.7%€1.69€0.39€0.7111
Feb ’24€0.67
€0.77
+16.1%
45.3%€1.72€0.40€0.7511
Jan ’24€0.49
€0.80
+62.5%
58.2%€2.18€0.40€0.9712
Dec ’23€0.77
€0.78
+2.5%
61.1%€2.21€0.41€0.8712
Nov ’23€0.65
€0.78
+20.7%
61.1%€2.21€0.41€0.7612

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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