QinetiQ Group Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: QQ. (£4.76) is trading below our estimate of fair value (£7.78)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

QQ. 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/Revenue1.5x
Enterprise Value/EBITDA9.9x
PEG Ratio1.8x

Price to Earnings Ratio vs Peers

How does QQ.'s PE Ratio compare to its peers?

The above table shows the PE ratio for QQ. vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average39.2x
BAB Babcock International Group
78.2x35.9%UK£2.6b
CHG Chemring Group
34.9x23.5%UK£1.1b
SNR Senior
21.5x21.2%UK£669.6m
CHRT Cohort
22.1x9.6%UK£338.0m
QQ. QinetiQ Group
19.5x10.7%UK£2.7b

Price-To-Earnings vs Peers: QQ. is good value based on its Price-To-Earnings Ratio (19.5x) compared to the peer average (39.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a19.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a19.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: QQ. is good value based on its Price-To-Earnings Ratio (19.5x) compared to the European Aerospace & Defense industry average (25.7x).


Price to Earnings Ratio vs Fair Ratio

What is QQ.'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.

QQ. PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.5x
Fair PE Ratio22.3x

Price-To-Earnings vs Fair Ratio: QQ. is good value based on its Price-To-Earnings Ratio (19.5x) compared to the estimated Fair Price-To-Earnings Ratio (22.3x).


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 QQ. forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£4.76
UK£5.01
+5.2%
9.7%UK£5.70UK£4.20n/a9
Jul ’25UK£4.42
UK£4.78
+8.1%
8.0%UK£5.35UK£4.20n/a9
Jun ’25UK£4.47
UK£4.53
+1.4%
7.5%UK£5.20UK£4.00n/a8
May ’25UK£3.48
UK£4.32
+23.9%
8.3%UK£4.65UK£3.52n/a8
Apr ’25UK£3.65
UK£4.33
+18.6%
8.4%UK£4.65UK£3.52n/a8
Mar ’25UK£3.74
UK£4.33
+15.9%
8.4%UK£4.65UK£3.52n/a8
Feb ’25UK£3.56
UK£4.33
+21.8%
8.4%UK£4.65UK£3.52n/a8
Jan ’25UK£3.09
UK£4.24
+37.2%
10.7%UK£4.65UK£3.30n/a8
Dec ’24UK£2.97
UK£4.20
+41.7%
9.9%UK£4.65UK£3.50n/a8
Nov ’24UK£3.33
UK£4.31
+29.4%
9.9%UK£4.93UK£3.50n/a8
Oct ’24UK£3.19
UK£4.31
+35.1%
10.0%UK£4.93UK£3.50n/a9
Sep ’24UK£3.35
UK£4.31
+28.7%
10.0%UK£4.93UK£3.50n/a9
Aug ’24UK£3.25
UK£4.31
+32.7%
10.0%UK£4.93UK£3.50n/a9
Jul ’24UK£3.54
UK£4.30
+21.4%
10.1%UK£4.93UK£3.50UK£4.429
Jun ’24UK£3.58
UK£4.21
+17.8%
9.3%UK£4.65UK£3.50UK£4.478
May ’24UK£3.71
UK£4.18
+12.4%
9.7%UK£4.65UK£3.40UK£3.488
Apr ’24UK£3.25
UK£4.18
+28.8%
10.3%UK£4.65UK£3.32UK£3.657
Mar ’24UK£3.44
UK£4.15
+20.7%
9.9%UK£4.65UK£3.32UK£3.748
Feb ’24UK£3.43
UK£4.16
+21.4%
10.0%UK£4.65UK£3.32UK£3.568
Jan ’24UK£3.57
UK£4.16
+16.5%
10.6%UK£4.65UK£3.20UK£3.098
Dec ’23UK£3.48
UK£4.16
+19.5%
10.6%UK£4.65UK£3.20UK£2.978
Nov ’23UK£3.65
UK£4.10
+12.4%
11.1%UK£4.65UK£3.20UK£3.338
Oct ’23UK£3.30
UK£4.10
+24.2%
11.1%UK£4.65UK£3.20UK£3.198
Sep ’23UK£3.36
UK£4.05
+20.6%
11.1%UK£4.65UK£3.20UK£3.359
Aug ’23UK£3.90
UK£4.02
+2.9%
12.3%UK£4.65UK£3.20UK£3.258
Jul ’23UK£3.75
UK£3.94
+5.2%
11.2%UK£4.65UK£3.20UK£3.548

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


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