We’ve recently updated our valuation analysis.

James Latham Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 LTHM?

Other financial metrics that can be useful for relative valuation.

LTHM 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/Revenue0.5x
Enterprise Value/EBITDA3.1x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does LTHM's PE Ratio compare to its peers?

LTHM PE Ratio vs Peers
The above table shows the PE ratio for LTHM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average15.5x
AT. Ashtead Technology Holdings
28.1x25.9%UK£200.5m
ASY Andrews Sykes Group
13.8xn/aUK£219.3m
MACF Macfarlane Group
10.9x6.5%UK£153.9m
SDY Speedy Hire
8.8x9.3%UK£189.9m
LTHM James Latham
5xn/aUK£223.9m

Price-To-Earnings vs Peers: LTHM is good value based on its Price-To-Earnings Ratio (5x) compared to the peer average (15.5x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: LTHM is good value based on its Price-To-Earnings Ratio (5x) compared to the UK Trade Distributors industry average (13.2x)


Price to Earnings Ratio vs Fair Ratio

What is LTHM'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.

LTHM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate LTHM's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

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

Below Fair Value: LTHM (£11.4) is trading below our estimate of fair value (£18.34)

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


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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