Chemring Group Valuation

Is CHG 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-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: CHG (£3.63) is trading below our estimate of fair value (£10.84)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

CHG 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/Revenue2.1x
Enterprise Value/EBITDA11.2x
PEG Ratio1.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CHG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average35.7x
SNR Senior
23.2xn/aUK£721.9m
QQ. QinetiQ Group
19.3x15.8%UK£2.1b
BAB Babcock International Group
79.9x29.7%UK£2.6b
CHRT Cohort
20.4x9.8%UK£270.7m
CHG Chemring Group
26.2x16.2%UK£989.4m

Price-To-Earnings vs Peers: CHG is good value based on its Price-To-Earnings Ratio (26.2x) compared to the peer average (35.7x).


Price to Earnings Ratio vs Industry

How does CHG's PE Ratio compare vs other companies in the European Aerospace & Defense Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a19.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a19.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: CHG is good value based on its Price-To-Earnings Ratio (26.2x) compared to the European Aerospace & Defense industry average (30.6x).


Price to Earnings Ratio vs Fair Ratio

What is CHG'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.

CHG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.2x
Fair PE Ratio18.7x

Price-To-Earnings vs Fair Ratio: CHG is expensive based on its Price-To-Earnings Ratio (26.2x) compared to the estimated Fair Price-To-Earnings Ratio (18.7x).


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 CHG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£3.63
UK£4.29
+18.3%
10.7%UK£5.10UK£3.45n/a7
Mar ’25UK£3.54
UK£4.29
+21.3%
10.7%UK£5.10UK£3.45n/a7
Feb ’25UK£3.50
UK£4.19
+20.0%
11.9%UK£5.10UK£3.45n/a7
Jan ’25UK£3.51
UK£4.09
+16.8%
12.5%UK£5.10UK£3.45n/a7
Dec ’24UK£3.20
UK£3.80
+19.0%
7.6%UK£4.30UK£3.45n/a7
Nov ’24UK£2.87
UK£3.81
+32.9%
7.2%UK£4.30UK£3.45n/a7
Oct ’24UK£2.78
UK£3.90
+40.5%
8.8%UK£4.40UK£3.45n/a7
Sep ’24UK£2.89
UK£3.96
+37.0%
8.5%UK£4.40UK£3.45n/a6
Aug ’24UK£3.05
UK£3.94
+29.2%
8.9%UK£4.40UK£3.45n/a6
Jul ’24UK£2.83
UK£3.78
+33.5%
10.4%UK£4.40UK£3.20n/a9
Jun ’24UK£2.66
UK£3.81
+43.3%
10.5%UK£4.40UK£3.25n/a8
May ’24UK£2.84
UK£3.91
+37.5%
9.0%UK£4.40UK£3.36n/a7
Apr ’24UK£2.78
UK£3.91
+40.5%
9.0%UK£4.40UK£3.36n/a7
Mar ’24UK£3.00
UK£3.82
+27.5%
10.3%UK£4.40UK£3.25UK£3.548
Feb ’24UK£2.85
UK£3.84
+34.8%
10.2%UK£4.40UK£3.25UK£3.508
Jan ’24UK£2.98
UK£3.79
+27.5%
11.4%UK£4.40UK£3.21UK£3.518
Dec ’23UK£3.10
UK£3.84
+24.2%
11.8%UK£4.40UK£3.21UK£3.208
Nov ’23UK£3.10
UK£3.84
+24.0%
11.8%UK£4.40UK£3.21UK£2.878
Oct ’23UK£2.84
UK£3.91
+37.8%
9.9%UK£4.40UK£3.30UK£2.788
Sep ’23UK£2.98
UK£3.91
+31.3%
9.9%UK£4.40UK£3.30UK£2.898
Aug ’23UK£3.46
UK£3.91
+13.1%
9.9%UK£4.40UK£3.30UK£3.058
Jul ’23UK£3.20
UK£3.99
+24.8%
9.9%UK£4.50UK£3.30UK£2.838
Jun ’23UK£3.61
UK£3.87
+7.4%
8.7%UK£4.50UK£3.50UK£2.668
May ’23UK£3.52
UK£3.81
+8.4%
11.4%UK£4.50UK£3.00UK£2.848
Apr ’23UK£3.24
UK£3.70
+14.3%
9.4%UK£4.30UK£3.00UK£2.788
Mar ’23UK£3.13
UK£3.52
+12.8%
9.9%UK£4.10UK£3.00UK£3.008

Analyst Forecast: Target price is less than 20% higher than the current share price.


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