Dowlais Group plc

LSE:DWL Stock Report

Market Cap: UK£744.5m

Dowlais Group Valuation

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

Below Fair Value: DWL (£0.55) is trading below our estimate of fair value (£1.9)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for DWL. This is calculated by dividing DWL's market cap by their current revenue.
What is DWL's PS Ratio?
PS Ratio0.2x
SalesUK£4.60b
Market CapUK£744.46m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for DWL 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£910.5m
ABDP AB Dynamics
4.5x8.9%UK£466.0m
JNEO Journeo
0.9x2.9%UK£46.5m
CTA CT Automotive Group
0.3x2.6%UK£33.9m
DWL Dowlais Group
0.2x-0.6%UK£744.5m

Price-To-Sales vs Peers: DWL 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 DWL's PS Ratio compare vs other companies in the European Auto Components Industry?

8 CompaniesPrice / SalesEstimated GrowthMarket Cap
DWL 0.2xIndustry Avg. 0.3xNo. of Companies14PS00.40.81.21.62+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: DWL 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 DWL'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.

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

Price-To-Sales vs Fair Ratio: DWL 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 DWL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.55
UK£0.83
+51.3%
18.5%UK£1.00UK£0.58n/a9
Nov ’25UK£0.48
UK£0.84
+74.5%
17.8%UK£1.00UK£0.58n/a10
Oct ’25UK£0.56
UK£0.94
+67.1%
19.8%UK£1.25UK£0.62n/a10
Sep ’25UK£0.65
UK£0.94
+44.5%
20.3%UK£1.25UK£0.62n/a10
Aug ’25UK£0.64
UK£1.13
+76.4%
23.2%UK£1.65UK£0.78n/a10
Jul ’25UK£0.69
UK£1.15
+66.4%
23.4%UK£1.65UK£0.78n/a10
Jun ’25UK£0.69
UK£1.17
+68.6%
22.0%UK£1.65UK£0.79n/a10
May ’25UK£0.82
UK£1.25
+51.7%
23.8%UK£1.75UK£0.79n/a10
Apr ’25UK£0.78
UK£1.25
+60.5%
23.6%UK£1.75UK£0.79n/a10
Mar ’25UK£0.88
UK£1.38
+57.3%
27.0%UK£2.00UK£0.83n/a10
Feb ’25UK£0.89
UK£1.42
+60.8%
26.6%UK£2.00UK£0.83n/a9
Jan ’25UK£1.07
UK£1.44
+35.1%
25.9%UK£2.00UK£0.90n/a9
Dec ’24UK£1.02
UK£1.48
+45.1%
23.0%UK£2.00UK£0.97n/a9
Nov ’24UK£1.00
UK£1.51
+50.0%
23.2%UK£2.00UK£0.97UK£0.489
Oct ’24UK£1.07
UK£1.62
+51.1%
22.6%UK£2.20UK£0.97UK£0.569
Sep ’24UK£1.10
UK£1.65
+49.6%
23.5%UK£2.20UK£0.97UK£0.658
Aug ’24UK£1.24
UK£1.65
+33.5%
23.3%UK£2.20UK£0.97UK£0.648
Jul ’24UK£1.27
UK£1.69
+33.0%
18.1%UK£2.20UK£1.15UK£0.698
Jun ’24UK£1.26
UK£1.71
+35.6%
18.8%UK£2.20UK£1.15UK£0.697
May ’24UK£1.33
UK£1.71
+29.0%
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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