Dowlais Group plc

BATS-CHIXE:DWLL Stock Report

Market Cap: UK£752.0m

Dowlais Group Valuation

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

Below Fair Value: DWLL (£0.56) is trading below our estimate of fair value (£1.9)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for DWLL. This is calculated by dividing DWLL's market cap by their current revenue.
What is DWLL's PS Ratio?
PS Ratio0.2x
SalesUK£4.60b
Market CapUK£751.96m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for DWLL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.5x
TIFS TI Fluid Systems
0.3x2.5%UK£889.8m
ABDP AB Dynamics
4.3x7.5%UK£477.5m
JNEO Journeo
1x2.9%UK£48.7m
CTA CT Automotive Group
0.3x2.6%UK£32.8m
DWLL Dowlais Group
0.2x-0.6%UK£752.0m

Price-To-Sales vs Peers: DWLL is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (1.5x).

Price to Sales Ratio vs Industry

How does DWLL's PS Ratio compare vs other companies in the European Auto Components Industry?

8 CompaniesPrice / SalesEstimated GrowthMarket Cap
No. of Companies15PS00.40.81.21.62+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: DWLL is good value based on its Price-To-Sales Ratio (0.2x) compared to the European Auto Components industry average (0.3x).

Price to Sales Ratio vs Fair Ratio

What is DWLL'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.

DWLL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ratio0.2x

Price-To-Sales vs Fair Ratio: DWLL is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (0.2x).

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 DWLL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.56
UK£0.81
+45.9%
19.6%UK£1.00UK£0.58n/a10
Nov ’25UK£0.49
UK£0.84
+73.8%
17.8%UK£1.00UK£0.58n/a10
Oct ’25UK£0.56
UK£0.94
+66.5%
19.8%UK£1.25UK£0.62n/a10
Sep ’25UK£0.65
UK£0.94
+44.3%
20.3%UK£1.25UK£0.62n/a10
Aug ’25UK£0.63
UK£1.13
+78.0%
23.2%UK£1.65UK£0.78n/a10
Jul ’25UK£0.70
UK£1.15
+64.6%
23.4%UK£1.65UK£0.78n/a10
Jun ’25UK£0.69
UK£1.17
+68.9%
22.0%UK£1.65UK£0.79n/a10
May ’25UK£0.82
UK£1.25
+53.2%
23.8%UK£1.75UK£0.79n/a10
Apr ’25UK£0.78
UK£1.25
+59.9%
23.6%UK£1.75UK£0.79n/a10
Mar ’25UK£0.87
UK£1.38
+58.3%
27.0%UK£2.00UK£0.83n/a10
Feb ’25UK£0.88
UK£1.42
+61.3%
26.6%UK£2.00UK£0.83n/a9
Jan ’25UK£1.08
UK£1.44
+34.1%
25.9%UK£2.00UK£0.90n/a9
Dec ’24UK£1.02
UK£1.48
+44.7%
23.0%UK£2.00UK£0.97n/a9
Nov ’24UK£1.00
UK£1.51
+50.5%
23.2%UK£2.00UK£0.97UK£0.499
Oct ’24UK£1.08
UK£1.62
+50.0%
22.6%UK£2.20UK£0.97UK£0.569
Sep ’24UK£1.10
UK£1.65
+50.0%
23.5%UK£2.20UK£0.97UK£0.658
Aug ’24UK£1.23
UK£1.65
+34.3%
23.3%UK£2.20UK£0.97UK£0.638
Jul ’24UK£1.28
UK£1.69
+31.9%
18.1%UK£2.20UK£1.15UK£0.708
Jun ’24UK£1.27
UK£1.71
+34.7%
18.8%UK£2.20UK£1.15UK£0.697
May ’24UK£1.32
UK£1.71
+29.2%
12.3%UK£2.00UK£1.44UK£0.824

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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