Keystone Law Group Valuation

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

KEYS (£6.3) is trading above our estimate of [[fair value]] (£6.05)

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: KEYS (£6.3) is trading above our estimate of fair value (£6.05)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for KEYS. This is calculated by dividing KEYS's market cap by their current earnings.
What is KEYS's PE Ratio?
PE Ratio	25.3x
Earnings	UK£7.87m
Market Cap	UK£199.04m

KEYS 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	2.1x
Enterprise Value/EBITDA	19.2x
PEG Ratio	5.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for KEYS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	45.3x
SAG Science Group	34.8x	18.3%	UK£209.8m
GTLY Gateley (Holdings)	17.5x	20.0%	UK£180.3m
BEG Begbies Traynor Group	103.6x	50.2%	UK£147.6m
DWF DWF Group	25.4x	47.9%	UK£316.4m
KEYS Keystone Law Group	25.3x	4.5%	UK£199.0m

Price-To-Earnings vs Peers: KEYS is good value based on its Price-To-Earnings Ratio (25.3x) compared to the peer average (52x).

Price to Earnings Ratio vs Industry

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

2 Companies	Price / Earnings	Estimated Growth	Market Cap
IBPO iEnergizer	1.7x	n/a	US$140.06m
TEK Tekcapital	1.5x	n/a	US$19.74m

No more companies available in this PE range

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: KEYS is expensive based on its Price-To-Earnings Ratio (25.3x) compared to the UK Professional Services industry average (23.1x).

Price to Earnings Ratio vs Fair Ratio

What is KEYS'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.

KEYS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	25.3x
Fair PE Ratio	15.5x

Price-To-Earnings vs Fair Ratio: KEYS is expensive based on its Price-To-Earnings Ratio (25.3x) compared to the estimated Fair Price-To-Earnings Ratio (15.5x).

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 KEYS forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	UK£6.30	UK£7.93 +25.8%	15.5%	UK£9.70	UK£6.30	n/a	4
Nov ’25	UK£5.95	UK£7.93 +33.2%	15.5%	UK£9.70	UK£6.30	n/a	4
Oct ’25	UK£5.81	UK£7.93 +36.4%	15.5%	UK£9.70	UK£6.30	n/a	4
Sep ’25	UK£6.55	UK£7.69 +17.4%	16.2%	UK£9.70	UK£6.30	n/a	4
Aug ’25	UK£6.59	UK£7.69 +16.7%	16.2%	UK£9.70	UK£6.30	n/a	4
Jul ’25	UK£6.60	UK£7.69 +16.5%	16.2%	UK£9.70	UK£6.30	n/a	4
Jun ’25	UK£7.00	UK£7.66 +9.4%	23.7%	UK£10.20	UK£5.00	n/a	6
May ’25	UK£6.60	UK£7.66 +16.0%	23.7%	UK£10.20	UK£5.00	n/a	6
Apr ’25	UK£6.00	UK£7.62 +26.9%	24.0%	UK£10.20	UK£5.00	n/a	6
Mar ’25	UK£6.10	UK£7.62 +24.9%	24.0%	UK£10.20	UK£5.00	n/a	6
Feb ’25	UK£5.47	UK£7.57 +38.3%	24.6%	UK£10.20	UK£5.00	n/a	6
Jan ’25	UK£5.10	UK£7.52 +47.4%	25.7%	UK£10.20	UK£4.70	n/a	6
Dec ’24	UK£4.70	UK£7.52 +59.9%	25.7%	UK£10.20	UK£4.70	n/a	6
Nov ’24	UK£4.70	UK£7.52 +59.9%	25.7%	UK£10.20	UK£4.70	UK£5.95	6
Oct ’24	UK£5.00	UK£7.52 +50.3%	25.7%	UK£10.20	UK£4.70	UK£5.81	6
Sep ’24	UK£4.35	UK£7.98 +83.4%	21.9%	UK£10.20	UK£5.50	UK£6.55	5
Aug ’24	UK£4.25	UK£7.98 +87.8%	21.9%	UK£10.20	UK£5.50	UK£6.59	5
Jul ’24	UK£4.04	UK£7.98 +97.8%	21.9%	UK£10.20	UK£5.50	UK£6.60	5
Jun ’24	UK£4.47	UK£7.98 +78.7%	21.9%	UK£10.20	UK£5.50	UK£7.00	5
May ’24	UK£4.53	UK£7.40 +63.5%	27.8%	UK£10.20	UK£4.50	UK£6.60	6
Apr ’24	UK£4.68	UK£7.50 +60.4%	26.3%	UK£10.20	UK£4.50	UK£6.00	6
Mar ’24	UK£5.28	UK£7.50 +42.0%	26.3%	UK£10.20	UK£4.50	UK£6.10	6
Feb ’24	UK£4.33	UK£8.26 +91.0%	25.3%	UK£10.20	UK£4.50	UK£5.47	5
Jan ’24	UK£4.40	UK£8.26 +87.7%	25.3%	UK£10.20	UK£4.50	UK£5.10	5
Dec ’23	UK£4.33	UK£8.26 +91.0%	25.3%	UK£10.20	UK£4.50	UK£4.70	5
Nov ’23	UK£4.80	UK£8.19 +70.7%	23.4%	UK£10.20	UK£4.50	UK£4.70	6

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.