Ashtead Technology Holdings Plc

AIM:AT. Stock Report

Mkt Cap: UK£254.7m

We’ve recently updated our valuation analysis.

Ashtead Technology Holdings Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

AT. key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.4x
Enterprise Value/EBITDA14x
PEG Ratio1.3x

Price to Earnings Ratio vs Peers

How does AT.'s PE Ratio compare to its peers?

The above table shows the PE ratio for AT. vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average9.8x
LTHM James Latham
6.6x-14.6%UK£251.2m
11x5.9%UK£281.5m
ASY Andrews Sykes Group
13.4xn/aUK£210.7m
SDY Speedy Hire
8.3x-1.5%UK£190.6m
AT. Ashtead Technology Holdings
35.6x28.3%UK£251.5m

Price-To-Earnings vs Peers: AT. is expensive based on its Price-To-Earnings Ratio (35.6x) compared to the peer average (9.8x).


Price to Earnings Ratio vs Industry

How does AT.'s PE Ratio compare vs other companies in the GB Trade Distributors Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a4.6%
n/an/an/a

Price-To-Earnings vs Industry: AT. is expensive based on its Price-To-Earnings Ratio (35.6x) compared to the UK Trade Distributors industry average (12.5x)


Price to Earnings Ratio vs Fair Ratio

What is AT.'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.

AT. PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio35.6x
Fair PE Ratio22.4x

Price-To-Earnings vs Fair Ratio: AT. is expensive based on its Price-To-Earnings Ratio (35.6x) compared to the estimated Fair Price-To-Earnings Ratio (22.3x).


Share Price vs Fair Value

What is the Fair Price of AT. when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AT. (£3.16) is trading below our estimate of fair value (£3.94)

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


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 AT. forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£3.16
UK£4.01
+26.9%
0.5%UK£4.05UK£4.00n/a5
Jan ’24UK£3.15
UK£3.68
+16.9%
9.5%UK£4.00UK£3.00n/a5
Dec ’23UK£3.14
UK£3.40
+8.2%
5.8%UK£3.75UK£3.15n/a5
Nov ’23UK£2.51
UK£3.28
+30.9%
3.0%UK£3.39UK£3.15n/a3
Oct ’23UK£2.41
UK£3.00
+24.5%
0%UK£3.00UK£3.00n/a1
Sep ’23UK£2.49
UK£3.00
+20.7%
0%UK£3.00UK£3.00n/a1
Aug ’23UK£2.21
UK£3.00
+36.1%
0%UK£3.00UK£3.00n/a1
Jul ’23UK£2.23
UK£3.00
+34.8%
0%UK£3.00UK£3.00n/a1
Jun ’23UK£1.97
UK£3.00
+52.7%
0%UK£3.00UK£3.00n/a1
May ’23UK£2.40
UK£3.00
+25.0%
0%UK£3.00UK£3.00n/a1
Apr ’23UK£2.59
UK£2.45
-5.4%
0%UK£2.45UK£2.45n/a1
Mar ’23UK£2.28
UK£2.45
+7.5%
0%UK£2.45UK£2.45n/a1
Feb ’23UK£2.18
UK£2.45
+12.4%
0%UK£2.45UK£2.45n/a1

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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