DSW Capital Valuation

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

DSW (£0.69) is trading below our estimate of [[fair value]] (£0.92)

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: DSW (£0.69) is trading below our estimate of fair value (£0.92)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for DSW. This is calculated by dividing DSW's market cap by their current revenue.
What is DSW's PS Ratio?
PS Ratio	6.5x
Sales	UK£2.31m
Market Cap	UK£15.13m

DSW 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/Revenue	5.6x
Enterprise Value/EBITDA	313.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for DSW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	0.5x
CTG Christie Group	0.4x	7.5%	UK£27.9m
TEK Tekcapital	1.2x	n/a	UK£16.5m
RBGP RBG Holdings	0.06x	9.7%	UK£2.1m
AUK Aukett Swanke Group	0.3x	n/a	UK£5.3m
DSW DSW Capital	6.5x	37.0%	UK£15.1m

Price-To-Sales vs Peers: DSW is expensive based on its Price-To-Sales Ratio (6.5x) compared to the peer average (0.5x).

Price to Sales Ratio vs Industry

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

10 Companies	Price / Sales	Estimated Growth	Market Cap
HAS Hays	0.2x	1.0%	US$1.52b
IPEL Impellam Group	0.2x	n/a	US$489.91m
CPI Capita	0.1x	1.3%	US$367.03m
RWA Robert Walters	0.2x	0.02%	US$284.02m

10 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: DSW is expensive based on its Price-To-Sales Ratio (6.5x) compared to the UK Professional Services industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is DSW'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.

DSW PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	6.5x
Fair PS Ratio	5x

Price-To-Sales vs Fair Ratio: DSW is expensive based on its Price-To-Sales Ratio (6.5x) compared to the estimated Fair Price-To-Sales Ratio (5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.