ITM Power Plc

AIM:ITM Stock Report

Market Cap: UK£217.7m

ITM Power Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: ITM (£0.35) is trading above our estimate of fair value (£0.16)

Significantly Below Fair Value: ITM is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for ITM. This is calculated by dividing ITM's market cap by their current revenue.
What is ITM's PS Ratio?
PS Ratio13.2x
SalesUK£16.51m
Market CapUK£217.69m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for ITM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.5x
IES Invinity Energy Systems
6x61.5%UK£52.9m
SAE SIMEC Atlantis Energy
0.9x26.8%UK£12.3m
XPP XP Power
1.1x3.4%UK£313.9m
TFW FW Thorpe
2xn/aUK£360.2m
ITM ITM Power
13.2x39.2%UK£217.7m

Price-To-Sales vs Peers: ITM is expensive based on its Price-To-Sales Ratio (13.2x) compared to the peer average (2.5x).

Price to Sales Ratio vs Industry

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

11 CompaniesPrice / SalesEstimated GrowthMarket Cap
DSCV discoverIE Group
1.4x2.8%US$768.21m
VLX Volex
0.7x6.7%US$684.71m
XPP XP Power
1.1x3.4%US$393.36m
LUCE Luceco
0.9x8.2%US$245.44m
ITM 13.2xIndustry Avg. 1.8xNo. of Companies11PS0612182430+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ITM is expensive based on its Price-To-Sales Ratio (13.2x) compared to the UK Electrical industry average (1.8x).

Price to Sales Ratio vs Fair Ratio

What is ITM'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.

ITM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio13.2x
Fair PS Ratio0.03x

Price-To-Sales vs Fair Ratio: ITM is expensive based on its Price-To-Sales Ratio (13.2x) compared to the estimated Fair Price-To-Sales Ratio (0x).

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 ITM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.35
UK£0.77
+119.7%
42.0%UK£1.70UK£0.40n/a15
Nov ’25UK£0.43
UK£0.79
+82.4%
40.9%UK£1.70UK£0.40n/a15
Oct ’25UK£0.49
UK£0.79
+62.0%
39.7%UK£1.70UK£0.45n/a15
Sep ’25UK£0.50
UK£0.83
+66.4%
37.5%UK£1.70UK£0.45n/a15
Aug ’25UK£0.52
UK£0.93
+78.1%
47.5%UK£2.00UK£0.46n/a15
Jul ’25UK£0.47
UK£0.93
+97.3%
48.1%UK£2.00UK£0.46n/a16
Jun ’25UK£0.63
UK£0.98
+56.3%
44.6%UK£2.00UK£0.46n/a16
May ’25UK£0.49
UK£0.98
+98.1%
44.6%UK£2.00UK£0.46n/a18
Apr ’25UK£0.54
UK£0.96
+78.6%
45.2%UK£2.00UK£0.46n/a19
Mar ’25UK£0.55
UK£0.96
+73.2%
44.2%UK£2.00UK£0.46n/a20
Feb ’25UK£0.58
UK£1.00
+71.6%
43.9%UK£2.00UK£0.46n/a18
Jan ’25UK£0.59
UK£1.09
+83.2%
52.3%UK£2.50UK£0.50n/a18
Dec ’24UK£0.52
UK£1.15
+122.5%
47.0%UK£2.50UK£0.55n/a18
Nov ’24UK£0.65
UK£1.25
+93.0%
54.1%UK£3.10UK£0.55UK£0.4319
Oct ’24UK£0.75
UK£1.63
+115.7%
76.4%UK£6.00UK£0.60UK£0.4918
Sep ’24UK£0.83
UK£1.55
+85.8%
77.5%UK£6.00UK£0.60UK£0.5020
Aug ’24UK£0.91
UK£1.57
+72.1%
77.1%UK£6.00UK£0.61UK£0.5220
Jul ’24UK£0.72
UK£1.59
+119.5%
76.2%UK£6.00UK£0.61UK£0.4720
Jun ’24UK£0.69
UK£1.60
+132.7%
75.5%UK£6.00UK£0.61UK£0.6320
May ’24UK£0.78
UK£1.76
+124.6%
70.9%UK£6.00UK£0.61UK£0.4921
Apr ’24UK£0.85
UK£1.79
+111.0%
68.5%UK£6.00UK£0.70UK£0.5421
Mar ’24UK£1.00
UK£1.81
+81.5%
67.8%UK£6.00UK£0.70UK£0.5521
Feb ’24UK£1.03
UK£1.82
+76.4%
68.4%UK£6.00UK£0.70UK£0.5820
Jan ’24UK£0.92
UK£2.20
+140.1%
76.6%UK£6.41UK£0.70UK£0.5921
Dec ’23UK£1.05
UK£2.20
+110.5%
76.6%UK£6.41UK£0.70UK£0.5221
Nov ’23UK£0.89
UK£2.78
+212.3%
68.5%UK£6.41UK£0.70UK£0.6520

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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