Volution Group plc

LSE:FAN Stock Report

Market Cap: UK£1.1b

Volution Group Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: FAN (£5.66) is trading below our estimate of fair value (£5.88)

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

Key Valuation Metric

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

Key metric: As FAN is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for FAN. This is calculated by dividing FAN's market cap by their current earnings.
What is FAN's PE Ratio?
PE Ratio26.2x
EarningsUK£42.80m
Market CapUK£1.12b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for FAN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.2x
GEN Genuit Group
45.4x32.6%UK£1.1b
JHD James Halstead
19.9x4.1%UK£825.2m
NXR Norcros
9x-1.2%UK£240.6m
ECEL Eurocell
14.6x22.3%UK£183.1m
FAN Volution Group
26.2x12.1%UK£1.1b

Price-To-Earnings vs Peers: FAN is good value based on its Price-To-Earnings Ratio (26.2x) compared to the peer average (32.7x).

Price to Earnings Ratio vs Industry

How does FAN's PE Ratio compare vs other companies in the European Building Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
FAN 26.2xIndustry Avg. 19.9xNo. of Companies13PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FAN is expensive based on its Price-To-Earnings Ratio (26.2x) compared to the European Building industry average (19.9x).

Price to Earnings Ratio vs Fair Ratio

What is FAN'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.

FAN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.2x
Fair PE Ratio17.4x

Price-To-Earnings vs Fair Ratio: FAN is expensive based on its Price-To-Earnings Ratio (26.2x) compared to the estimated Fair Price-To-Earnings Ratio (17.4x).

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 FAN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£5.66
UK£6.29
+11.1%
9.7%UK£7.00UK£5.10n/a8
Nov ’25UK£5.85
UK£6.29
+7.5%
9.7%UK£7.00UK£5.10n/a8
Oct ’25UK£5.90
UK£5.81
-1.5%
15.6%UK£7.00UK£4.30n/a8
Sep ’25UK£5.65
UK£5.21
-7.8%
10.3%UK£6.00UK£4.30n/a8
Aug ’25UK£5.31
UK£5.21
-1.9%
10.3%UK£6.00UK£4.30n/a8
Jul ’25UK£4.50
UK£4.95
+10.1%
6.0%UK£5.40UK£4.30n/a8
Jun ’25UK£4.51
UK£4.95
+9.7%
6.0%UK£5.40UK£4.30n/a8
May ’25UK£4.45
UK£4.95
+11.3%
6.0%UK£5.40UK£4.30n/a8
Apr ’25UK£4.35
UK£4.95
+13.8%
6.0%UK£5.40UK£4.30n/a8
Mar ’25UK£4.19
UK£4.68
+11.8%
8.6%UK£5.10UK£3.80n/a7
Feb ’25UK£4.26
UK£4.58
+7.5%
10.3%UK£5.10UK£3.80n/a8
Jan ’25UK£4.34
UK£4.46
+2.8%
9.0%UK£5.00UK£3.80n/a8
Dec ’24UK£4.01
UK£4.41
+10.0%
9.0%UK£5.00UK£3.80n/a8
Nov ’24UK£3.67
UK£4.38
+19.3%
8.7%UK£5.00UK£3.80UK£5.858
Oct ’24UK£3.62
UK£4.43
+22.4%
7.9%UK£5.00UK£3.82UK£5.907
Sep ’24UK£3.80
UK£4.49
+18.2%
8.6%UK£5.00UK£3.82UK£5.657
Aug ’24UK£4.02
UK£4.55
+13.2%
8.4%UK£5.00UK£3.82UK£5.316
Jul ’24UK£3.78
UK£4.63
+22.4%
6.4%UK£5.00UK£4.19UK£4.505
Jun ’24UK£4.41
UK£4.59
+4.0%
7.7%UK£5.00UK£4.00UK£4.515
May ’24UK£4.33
UK£4.35
+0.4%
14.4%UK£5.00UK£3.15UK£4.456
Apr ’24UK£4.31
UK£4.33
+0.7%
14.3%UK£5.00UK£3.15UK£4.356
Mar ’24UK£3.64
UK£4.07
+11.7%
14.5%UK£4.70UK£3.15UK£4.196
Feb ’24UK£3.80
UK£4.07
+7.0%
14.5%UK£4.70UK£3.15UK£4.266
Jan ’24UK£3.65
UK£3.90
+6.8%
14.6%UK£4.60UK£3.15UK£4.345
Dec ’23UK£3.56
UK£3.90
+9.7%
14.6%UK£4.60UK£3.15UK£4.015
Nov ’23UK£3.14
UK£3.90
+24.4%
14.6%UK£4.60UK£3.15UK£3.675

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

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