Meggitt PLC

LSE:MGGT Stock Report

Market Cap: UK£6.2b

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This company may still be operating, however this listing is no longer active. Find out why through their latest events.

Meggitt Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: MGGT (£7.99) is trading below our estimate of fair value (£9.23)

Significantly Below Fair Value: MGGT 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 MGGT?

Key metric: As MGGT is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for MGGT. This is calculated by dividing MGGT's market cap by their current revenue.
What is MGGT's PS Ratio?
PS Ratio3.8x
SalesUK£1.63b
Market CapUK£6.25b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for MGGT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.5x
MRO Melrose Industries
1.8x6.9%UK£6.3b
BAB Babcock International Group
0.6x3.5%UK£2.6b
QQ. QinetiQ Group
1.2x6.5%UK£2.4b
RR. Rolls-Royce Holdings
2.6x5.5%UK£45.5b
MGGT Meggitt
3.8x11.6%UK£6.2b

Price-To-Sales vs Peers: MGGT is expensive based on its Price-To-Sales Ratio (3.8x) compared to the peer average (0.9x).

Price to Sales Ratio vs Industry

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

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
MGGT 3.8xIndustry Avg. 1.6xNo. of Companies13PS01.22.43.64.86+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: MGGT is expensive based on its Price-To-Sales Ratio (3.8x) compared to the European Aerospace & Defense industry average (1.3x)

Price to Sales Ratio vs Fair Ratio

What is MGGT'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.

MGGT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.8x
Fair PS Ratio2.3x

Price-To-Sales vs Fair Ratio: MGGT is expensive based on its Price-To-Sales Ratio (3.8x) compared to the estimated Fair Price-To-Sales Ratio (2.3x).

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 MGGT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6
Nov ’25n/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6
Oct ’25n/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6
Sep ’25n/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6
Aug ’25n/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6
Jul ’25n/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6
Jun ’25n/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6
May ’25n/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6
Apr ’25n/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6
Mar ’25n/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6
Feb ’25n/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6
Jan ’25n/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6
Dec ’24n/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6
Nov ’24n/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6
Oct ’24n/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6
Sep ’24n/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6
Aug ’24n/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6
Jul ’24n/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6
Jun ’24n/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6
May ’24n/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6
Apr ’24n/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6
Mar ’24n/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6
Feb ’24n/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6
Jan ’24n/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6
Dec ’23n/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6
Nov ’23n/a
UK£7.97
0%
0.9%UK£8.00UK£7.80n/a6

Analyst Forecast: Target price is lower than the current share price.

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