Begbies Traynor Group plc

AIM:BEG Stock Report

Market Cap: UK£140.4m

Begbies Traynor Group Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: BEG (£0.89) is trading below our estimate of fair value (£2.1)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BEG. This is calculated by dividing BEG's market cap by their current earnings.
What is BEG's PE Ratio?
PE Ratio96.7x
EarningsUK£1.45m
Market CapUK£140.39m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BEG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.8x
GTLY Gateley (Holdings)
18x16.7%UK£181.7m
KEYS Keystone Law Group
25.1x4.5%UK£197.5m
SAG Science Group
34.4x18.3%UK£207.9m
KGH Knights Group Holdings
9.5x15.7%UK£93.2m
BEG Begbies Traynor Group
96.7x49.8%UK£140.4m

Price-To-Earnings vs Peers: BEG is expensive based on its Price-To-Earnings Ratio (96.7x) compared to the peer average (21.8x).


Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
IBPO iEnergizer
1.7xn/aUS$140.06m
TEK Tekcapital
1.7xn/aUS$24.00m
No more companies available in this PE range
BEG 96.7xIndustry Avg. 24.6xNo. of Companies4PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BEG is expensive based on its Price-To-Earnings Ratio (96.7x) compared to the UK Professional Services industry average (24.6x).


Price to Earnings Ratio vs Fair Ratio

What is BEG'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.

BEG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio96.7x
Fair PE Ratio30.3x

Price-To-Earnings vs Fair Ratio: BEG is expensive based on its Price-To-Earnings Ratio (96.7x) compared to the estimated Fair Price-To-Earnings Ratio (30.3x).


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 BEG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.89
UK£1.57
+76.0%
6.5%UK£1.75UK£1.48n/a5
Nov ’25UK£0.93
UK£1.66
+79.0%
7.4%UK£1.80UK£1.50n/a4
Oct ’25UK£1.03
UK£1.66
+60.9%
7.4%UK£1.80UK£1.50n/a4
Sep ’25UK£1.03
UK£1.66
+60.9%
7.4%UK£1.80UK£1.50n/a4
Aug ’25UK£1.05
UK£1.71
+62.6%
4.8%UK£1.80UK£1.58n/a4
Jul ’25UK£1.00
UK£1.75
+75.0%
2.0%UK£1.80UK£1.70n/a4
Jun ’25UK£1.07
UK£1.75
+64.3%
2.0%UK£1.80UK£1.70n/a4
May ’25UK£1.07
UK£1.75
+64.3%
2.0%UK£1.80UK£1.70n/a4
Apr ’25UK£1.07
UK£1.75
+63.6%
2.0%UK£1.80UK£1.70n/a4
Mar ’25UK£1.12
UK£1.75
+57.0%
2.0%UK£1.80UK£1.70n/a4
Feb ’25UK£1.12
UK£1.75
+57.0%
2.0%UK£1.80UK£1.70n/a4
Jan ’25UK£1.17
UK£1.75
+49.6%
2.0%UK£1.80UK£1.70n/a4
Dec ’24UK£1.16
UK£1.77
+52.6%
2.8%UK£1.83UK£1.70UK£0.894
Nov ’24UK£1.20
UK£1.77
+48.1%
2.8%UK£1.83UK£1.70UK£0.934
Oct ’24UK£1.12
UK£1.77
+58.0%
2.8%UK£1.83UK£1.70UK£1.034
Sep ’24UK£1.22
UK£1.77
+45.1%
2.8%UK£1.83UK£1.70UK£1.034
Aug ’24UK£1.32
UK£1.77
+34.1%
2.8%UK£1.83UK£1.70UK£1.054
Jul ’24UK£1.32
UK£1.76
+33.8%
2.4%UK£1.80UK£1.70UK£1.004
Jun ’24UK£1.22
UK£1.76
+44.5%
2.4%UK£1.80UK£1.70UK£1.074
May ’24UK£1.31
UK£1.76
+34.5%
2.4%UK£1.80UK£1.70UK£1.074
Apr ’24UK£1.27
UK£1.76
+38.8%
2.4%UK£1.80UK£1.70UK£1.074
Mar ’24UK£1.37
UK£1.76
+28.5%
2.4%UK£1.80UK£1.70UK£1.124
Feb ’24UK£1.43
UK£1.76
+23.3%
2.4%UK£1.80UK£1.70UK£1.124
Jan ’24UK£1.45
UK£1.76
+21.4%
2.4%UK£1.80UK£1.70UK£1.174
Dec ’23UK£1.48
UK£1.76
+19.4%
2.4%UK£1.80UK£1.70UK£1.164

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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