Kainos Group Valuation

Is 1KG 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-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.

Discounted Cash Flow
Simply Wall St
€8.76
Fair Value
1.6% overvalued intrinsic discount
11
Number of Analysts

Below Fair Value: 1KG (€8.9) is trading above our estimate of fair value (€8.76)

Significantly Below Fair Value: 1KG is trading above our estimate of fair value.


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 Ratio19x
EarningsUK£52.01m
Market CapUK£988.79m

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 Average19.5x
SANT Kontron
13.2x19.4%€1.1b
NA9 Nagarro
19.5x15.7%€1.1b
COK Cancom
19.1x2.2%€772.1m
YSN secunet Security Networks
26.3x8.5%€727.2m
1KG Kainos Group
19x1.5%€988.8m

Price-To-Earnings vs Peers: 1KG is good value based on its Price-To-Earnings Ratio (19x) compared to the peer average (19.5x).


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 19.0xIndustry Avg. 17.6xNo. of Companies4PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1KG is expensive based on its Price-To-Earnings Ratio (19x) compared to the European IT industry average (17.6x).


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 Ratio19x
Fair PE Ratio20x

Price-To-Earnings vs Fair Ratio: 1KG is good value based on its Price-To-Earnings Ratio (19x) compared to the estimated Fair Price-To-Earnings Ratio (20x).


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€8.90
€12.52
+40.6%
19.5%€18.21€8.74n/a11
Jan ’26€9.10
€12.61
+38.6%
19.5%€18.35€8.81n/a11
Dec ’25€8.90
€12.43
+39.6%
19.5%€18.08€8.68n/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€11.49€9.109
Dec ’24€10.89
€16.59
+52.3%
21.9%€24.13€11.49€8.909
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
Analyst Price Target
Consensus Narrative from 11 Analysts
€11.69
Fair Value
23.9% undervalued intrinsic discount
11
Number of Analysts

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.


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/20 16:38
End of Day Share Price 2025/01/17 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Kainos Group plc is covered by 15 analysts. 11 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Benjamin MayBerenberg
Alexander James ShortBerenberg
Aditya BuddhavarapuBofA Global Research