Kainos Group plc

DB:1KG Stock Report

Market Cap: €1.2b

Kainos Group Valuation

Is 1KG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 1KG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1KG (€8.8) is trading below our estimate of fair value (€8.83)

Significantly Below Fair Value: 1KG is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1KG?

Key metric: As 1KG is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1KG. This is calculated by dividing 1KG's market cap by their current earnings.
What is 1KG's PE Ratio?
PE Ratio18.8x
EarningsUK£52.01m
Market CapUK£978.60m

Price to Earnings Ratio vs Peers

How does 1KG's PE Ratio compare to its peers?

The above table shows the PE ratio for 1KG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.9x
NA9 Nagarro
24x17.1%€1.3b
SANT Kontron
12.3x19.1%€1.0b
COK Cancom
18.1x1.1%€733.0m
YSN secunet Security Networks
25x8.5%€690.9m
1KG Kainos Group
18.8x1.7%€978.6m

Price-To-Earnings vs Peers: 1KG is good value based on its Price-To-Earnings Ratio (18.8x) compared to the peer average (19.9x).

Price to Earnings Ratio vs Industry

How does 1KG's PE Ratio compare vs other companies in the DE IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
1KG 18.8xIndustry Avg. 18.1xNo. of Companies4PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1KG is expensive based on its Price-To-Earnings Ratio (18.8x) compared to the European IT industry average (17.4x).

Price to Earnings Ratio vs Fair Ratio

What is 1KG'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.

1KG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.8x
Fair PE Ratio20.7x

Price-To-Earnings vs Fair Ratio: 1KG is good value based on its Price-To-Earnings Ratio (18.8x) compared to the estimated Fair Price-To-Earnings Ratio (20.7x).

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 1KG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€8.80
€12.45
+41.5%
19.5%€18.12€8.70n/a11
Nov ’25€8.65
€13.39
+54.9%
14.4%€18.00€10.67n/a10
Oct ’25€10.20
€15.56
+52.6%
17.5%€20.72€11.84n/a10
Sep ’25€12.90
€16.51
+28.0%
18.8%€22.67€12.51n/a10
Aug ’25€12.70
€16.51
+30.0%
18.8%€22.67€12.51n/a10
Jul ’25€12.20
€16.57
+35.8%
20.1%€22.54€11.66n/a9
Jun ’25€13.30
€16.31
+22.6%
19.6%€22.43€11.60n/a10
May ’25€11.20
€15.85
+41.5%
24.6%€24.58€11.70n/a10
Apr ’25€11.19
€16.62
+48.5%
21.9%€24.55€11.69n/a9
Mar ’25€12.58
€16.62
+32.1%
21.9%€24.55€11.69n/a9
Feb ’25€13.21
€16.54
+25.2%
22.6%€24.59€11.71n/a9
Jan ’25€12.76
€16.59
+30.0%
21.9%€24.13€11.49n/a9
Dec ’24€10.89
€16.59
+52.3%
21.9%€24.13€11.49n/a9
Nov ’24€12.75
€18.11
+42.0%
16.1%€23.14€14.81€8.658
Oct ’24€13.16
€18.15
+37.9%
15.9%€23.15€15.04€10.208
Sep ’24€14.16
€17.76
+25.4%
17.2%€23.26€13.96€12.909
Aug ’24€14.83
€17.76
+19.8%
17.2%€23.26€13.96€12.709
Jul ’24€14.11
€17.75
+25.8%
17.7%€23.36€14.02€12.209
Jun ’24€14.89
€17.69
+18.8%
18.3%€23.03€13.82€13.309
May ’24€13.99
€17.84
+27.5%
16.6%€22.69€14.05€11.209
Apr ’24€15.64
€17.62
+12.6%
15.6%€22.42€13.45€11.1910
Mar ’24€15.56
€17.92
+15.2%
15.6%€22.80€13.68€12.5810
Feb ’24€16.42
€17.92
+9.1%
15.6%€22.80€13.68€13.2110
Jan ’24€17.05
€17.60
+3.2%
11.5%€20.80€13.74€12.769
Dec ’23€18.40
€18.30
-0.6%
15.1%€25.01€13.96€10.8910
Nov ’23€14.52
€17.19
+18.4%
19.5%€24.79€13.84€12.758

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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