Ultra Electronics Holdings plc

LSE:ULE Stock Report

Mkt Cap: UK£2.5b

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We’ve recently updated our valuation analysis.

Ultra Electronics Holdings Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • 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 ULE?

Other financial metrics that can be useful for relative valuation.

ULE 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/Revenue3x
Enterprise Value/EBITDA19x
PEG Ratio2.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ULE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average63.8x
QQ. QinetiQ Group
11.1x-0.5%UK£2.0b
BAB Babcock International Group
10.5x11.2%UK£1.5b
CHG Chemring Group
16.8x6.3%UK£794.0m
MGGT Meggitt
1487.5x41.8%UK£6.2b
ULE Ultra Electronics Holdings
37.5x14.9%UK£2.5b

Price-To-Earnings vs Peers: ULE is good value based on its Price-To-Earnings Ratio (37.5x) compared to the peer average (63.8x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.5%
n/an/an/a

Price-To-Earnings vs Industry: ULE is expensive based on its Price-To-Earnings Ratio (37.5x) compared to the UK Aerospace & Defense industry average (24.6x)


Price to Earnings Ratio vs Fair Ratio

What is ULE'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.

ULE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio37.5x
Fair PE Ratio23.9x

Price-To-Earnings vs Fair Ratio: ULE is expensive based on its Price-To-Earnings Ratio (37.5x) compared to the estimated Fair Price-To-Earnings Ratio (23.9x).


Share Price vs Fair Value

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

Below Fair Value: ULE (£35) is trading above our estimate of fair value (£30.56)

Significantly Below Fair Value: ULE is trading above our estimate of fair value.


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 ULE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
UK£32.13
0%
15.5%UK£35.00UK£23.50n/a4
Jan ’24n/a
UK£32.13
0%
15.5%UK£35.00UK£23.50n/a4
Dec ’23n/a
UK£32.13
0%
15.5%UK£35.00UK£23.50n/a4
Nov ’23n/a
UK£32.13
0%
15.5%UK£35.00UK£23.50n/a4
Oct ’23n/a
UK£32.13
0%
15.5%UK£35.00UK£23.50n/a4
Sep ’23n/a
UK£32.13
0%
15.5%UK£35.00UK£23.50n/a4
Aug ’23UK£35.00
UK£32.70
-6.6%
14.1%UK£35.00UK£23.50n/a5
Jul ’23UK£34.60
UK£32.70
-5.5%
14.1%UK£35.00UK£23.50n/a5
Jun ’23UK£32.20
UK£32.70
+1.6%
14.1%UK£35.00UK£23.50n/a5
May ’23UK£32.64
UK£32.50
-0.4%
13.0%UK£35.00UK£23.50n/a6
Apr ’23UK£33.24
UK£32.50
-2.2%
13.0%UK£35.00UK£23.50n/a6
Mar ’23UK£32.60
UK£30.58
-6.2%
16.9%UK£35.00UK£23.50n/a6
Feb ’23UK£29.52
UK£30.58
+3.6%
16.9%UK£35.00UK£23.50n/a6
Jan ’23UK£31.80
UK£30.92
-2.8%
18.7%UK£35.00UK£22.00n/a6
Dec ’22UK£31.58
UK£30.07
-4.8%
19.1%UK£35.00UK£22.00n/a7
Nov ’22UK£32.48
UK£30.07
-7.4%
19.1%UK£35.00UK£22.00n/a7
Oct ’22UK£32.30
UK£29.06
-10.0%
20.7%UK£35.00UK£22.00n/a8
Sep ’22UK£32.02
UK£27.44
-14.3%
21.6%UK£35.00UK£22.00n/a8
Aug ’22UK£31.70
UK£27.44
-13.4%
21.6%UK£35.00UK£22.00UK£35.008
Jul ’22UK£23.02
UK£22.65
-1.6%
11.3%UK£27.00UK£18.02UK£34.6011
Jun ’22UK£20.66
UK£22.85
+10.6%
11.1%UK£27.00UK£18.02UK£32.2012
May ’22UK£20.22
UK£22.90
+13.3%
11.6%UK£27.00UK£17.93UK£32.6411
Apr ’22UK£20.82
UK£23.10
+11.0%
12.6%UK£27.00UK£17.93UK£33.249
Mar ’22UK£19.56
UK£22.91
+17.1%
13.0%UK£27.00UK£16.87UK£32.609
Feb ’22UK£19.56
UK£23.04
+17.8%
13.4%UK£27.00UK£16.87UK£29.529
Jan ’22UK£20.72
UK£23.42
+13.0%
12.4%UK£27.00UK£17.32UK£31.8010

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


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