Midwich Group plc

DB:9S2 Stock Report

Market Cap: €343.5m

Midwich Group Valuation

Is 9S2 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-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 9S2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 9S2 (€3.18) is trading below our estimate of fair value (€6.86)

Significantly Below Fair Value: 9S2 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 9S2?

Key metric: As 9S2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 9S2. This is calculated by dividing 9S2's market cap by their current earnings.
What is 9S2's PE Ratio?
PE Ratio12.7x
EarningsUK£22.48m
Market CapUK£285.45m

Price to Earnings Ratio vs Peers

How does 9S2's PE Ratio compare to its peers?

The above table shows the PE ratio for 9S2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.4x
S9I Stemmer Imaging
42.2x37.2%€344.5m
JEN Jenoptik
14.2x12.3%€1.2b
M7U Nynomic
12.2x17.5%€115.4m
DAM DATA MODUL Produktion und Vertrieb von elektronischen Systemen
13x15.3%€98.7m
9S2 Midwich Group
12.7x-5.6%€285.5m

Price-To-Earnings vs Peers: 9S2 is good value based on its Price-To-Earnings Ratio (12.7x) compared to the peer average (20.4x).

Price to Earnings Ratio vs Industry

How does 9S2's PE Ratio compare vs other companies in the European Electronic Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
9S2 12.7xIndustry Avg. 17.8xNo. of Companies18PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 9S2 is good value based on its Price-To-Earnings Ratio (12.7x) compared to the European Electronic industry average (17.8x).

Price to Earnings Ratio vs Fair Ratio

What is 9S2'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.

9S2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.7x
Fair PE Ratio7.7x

Price-To-Earnings vs Fair Ratio: 9S2 is expensive based on its Price-To-Earnings Ratio (12.7x) compared to the estimated Fair Price-To-Earnings Ratio (7.7x).

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 9S2 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€3.18
€5.78
+81.7%
5.5%€6.00€5.33n/a3
Nov ’25€3.32
€5.78
+74.1%
5.5%€6.00€5.33n/a3
Oct ’25€3.74
€6.38
+70.6%
24.8%€8.21€4.03n/a4
Sep ’25€3.76
€6.65
+76.9%
18.6%€8.24€5.05n/a4
Aug ’25€4.00
€6.65
+66.2%
18.6%€8.23€5.05n/a4
Jul ’25€4.38
€6.59
+50.4%
18.6%€8.16€5.00n/a4
Jun ’25€4.26
€6.57
+54.2%
18.6%€8.14€4.99n/a4
May ’25€4.76
€7.93
+66.6%
16.5%€9.45€5.83n/a4
Apr ’25€4.70
€7.92
+68.5%
17.5%€9.48€5.68n/a4
Mar ’25€3.98
€7.88
+98.1%
17.5%€9.44€5.65n/a4
Feb ’25€4.22
€7.88
+86.8%
17.5%€9.44€5.65n/a4
Jan ’25€4.76
€8.02
+68.4%
18.7%€9.29€5.56n/a4
Dec ’24€4.26
€8.02
+88.2%
18.7%€9.29€5.56n/a4
Nov ’24€4.30
€8.32
+93.5%
14.9%€9.44€6.35€3.324
Oct ’24€4.54
€8.32
+83.3%
14.9%€9.44€6.35€3.744
Sep ’24€4.52
€8.32
+84.1%
14.9%€9.44€6.35€3.764
Aug ’24€4.86
€8.32
+71.2%
14.9%€9.44€6.35€4.004
Jul ’24€4.92
€8.35
+69.8%
14.9%€9.48€6.38€4.384
Jun ’24€4.92
€8.11
+64.8%
14.8%€9.29€6.19€4.264
May ’24€5.10
€7.99
+56.8%
15.4%€9.19€6.01€4.764
Apr ’24€5.45
€7.99
+46.7%
15.4%€9.19€6.01€4.704
Mar ’24€5.40
€8.06
+49.3%
15.4%€9.26€6.06€3.984
Feb ’24€5.40
€8.06
+49.3%
15.4%€9.26€6.06€4.224
Jan ’24€4.54
€8.08
+78.0%
15.4%€9.28€6.07€4.764
Dec ’23€4.84
€8.08
+67.0%
15.4%€9.28€6.07€4.264
Nov ’23€5.70
€8.09
+41.9%
15.4%€9.29€6.08€4.304

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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