Alpha Financial Markets Consulting plc

AIM:AFM Stock Report

Mkt Cap: UK£519.8m

We’ve recently updated our valuation analysis.

Alpha Financial Markets Consulting Valuation

Is AFM 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 AFM?

Other financial metrics that can be useful for relative valuation.

AFM 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/Revenue2.5x
Enterprise Value/EBITDA14.9x
PEG Ratio2.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AFM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average25.1x
RWS RWS Holdings
14.9x5.7%UK£932.3m
ELIX Elixirr International
16.8x12.1%UK£216.4m
BEG Begbies Traynor Group
53.8x29.8%UK£191.2m
GTLY Gateley (Holdings)
14.7xn/aUK£217.1m
AFM Alpha Financial Markets Consulting
29.1x11.3%UK£519.8m

Price-To-Earnings vs Peers: AFM is expensive based on its Price-To-Earnings Ratio (29.1x) compared to the peer average (25.1x).


Price to Earnings Ratio vs Industry

How does AFM's PE Ratio compare vs other companies in the GB Professional Services Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.0%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.0%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: AFM is expensive based on its Price-To-Earnings Ratio (29.1x) compared to the UK Professional Services industry average (16.3x)


Price to Earnings Ratio vs Fair Ratio

What is AFM'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.

AFM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio29.1x
Fair PE Ratio18.2x

Price-To-Earnings vs Fair Ratio: AFM is expensive based on its Price-To-Earnings Ratio (29.1x) compared to the estimated Fair Price-To-Earnings Ratio (18.2x).


Share Price vs Fair Value

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

Below Fair Value: AFM (£4.55) is trading above our estimate of fair value (£4.4)

Significantly Below Fair Value: AFM 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 AFM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£4.55
UK£5.69
+25.0%
7.3%UK£6.48UK£5.30n/a5
May ’24UK£4.65
UK£5.72
+22.9%
7.1%UK£6.48UK£5.30n/a6
Apr ’24UK£4.26
UK£5.72
+34.2%
7.1%UK£6.48UK£5.30n/a6
Mar ’24UK£4.65
UK£5.53
+18.9%
7.3%UK£6.17UK£5.14n/a6
Feb ’24UK£4.80
UK£5.52
+14.9%
6.8%UK£6.17UK£5.14n/a7
Jan ’24UK£4.75
UK£5.52
+16.1%
6.8%UK£6.17UK£5.14n/a7
Dec ’23UK£4.87
UK£5.52
+13.3%
6.8%UK£6.17UK£5.14n/a7
Nov ’23UK£3.75
UK£5.13
+36.9%
12.4%UK£6.05UK£4.50n/a6
Oct ’23UK£3.95
UK£5.13
+30.0%
12.4%UK£6.05UK£4.50n/a6
Sep ’23UK£4.00
UK£5.13
+28.3%
12.4%UK£6.05UK£4.50n/a6
Aug ’23UK£4.30
UK£5.13
+19.4%
12.4%UK£6.05UK£4.50n/a6
Jul ’23UK£3.90
UK£5.19
+33.1%
11.4%UK£6.05UK£4.70n/a6
Jun ’23UK£3.93
UK£5.16
+31.4%
11.9%UK£6.05UK£4.65n/a6
May ’23UK£4.08
UK£5.26
+29.1%
11.9%UK£6.05UK£4.70UK£4.655
Apr ’23UK£3.50
UK£5.05
+44.3%
12.4%UK£6.05UK£4.40UK£4.265
Mar ’23UK£3.65
UK£5.05
+38.4%
12.4%UK£6.05UK£4.40UK£4.655
Feb ’23UK£4.36
UK£4.81
+10.2%
7.8%UK£5.50UK£4.40UK£4.805
Jan ’23UK£4.70
UK£4.81
+2.3%
7.8%UK£5.50UK£4.40UK£4.755
Dec ’22UK£3.90
UK£4.81
+23.2%
7.8%UK£5.50UK£4.40UK£4.875
Nov ’22UK£3.48
UK£4.31
+23.9%
14.8%UK£5.50UK£3.60UK£3.755
Oct ’22UK£3.49
UK£4.31
+23.5%
14.8%UK£5.50UK£3.60UK£3.955
Sep ’22UK£3.55
UK£4.31
+21.4%
14.8%UK£5.50UK£3.60UK£4.005
Aug ’22UK£3.45
UK£4.01
+16.3%
6.4%UK£4.25UK£3.60UK£4.304
Jul ’22UK£3.55
UK£4.01
+13.0%
6.4%UK£4.25UK£3.60UK£3.904
Jun ’22UK£3.71
UK£3.91
+5.5%
8.0%UK£4.25UK£3.60UK£3.934
May ’22UK£3.27
UK£3.17
-3.0%
5.4%UK£3.50UK£3.00UK£4.085

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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