Checkit Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: CKT (£0.2) is trading below our estimate of fair value (£0.73)

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


Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for CKT. This is calculated by dividing CKT's market cap by their current revenue.
What is CKT's PS Ratio?
PS Ratio1.6x
SalesUK£13.00m
Market CapUK£21.06m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for CKT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average7.3x
PODP Pod Point Group Holdings
0.3x19.9%UK£19.1m
GELN Gelion
12.4xn/aUK£25.8m
IKA Ilika
16.4x60.0%UK£34.3m
DIA Dialight
0.3x6.0%UK£40.2m
CKT Checkit
1.6x15.2%UK£21.1m

Price-To-Sales vs Peers: CKT is good value based on its Price-To-Sales Ratio (1.6x) compared to the peer average (7.3x).


Price to Sales Ratio vs Industry

How does CKT's PS Ratio compare vs other companies in the GB Electrical Industry?

12 CompaniesPrice / SalesEstimated GrowthMarket Cap
DSCV discoverIE Group
1.4x2.8%US$763.01m
VLX Volex
0.6x6.7%US$666.45m
XPP XP Power
1.1x3.2%US$391.66m
LUCE Luceco
0.9x8.2%US$252.39m
CKT 1.6xIndustry Avg. 1.9xNo. of Companies12PS0612182430+
12 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: CKT is good value based on its Price-To-Sales Ratio (1.6x) compared to the UK Electrical industry average (1.9x).


Price to Sales Ratio vs Fair Ratio

What is CKT'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.

CKT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.6x
Fair PS Ratio1.5x

Price-To-Sales vs Fair Ratio: CKT is expensive based on its Price-To-Sales Ratio (1.6x) compared to the estimated Fair Price-To-Sales Ratio (1.5x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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