Learning Technologies Group plc

AIM:LTG Stock Report

Market Cap: UK£722.3m

Learning Technologies Group Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: LTG (£0.92) is trading below our estimate of fair value (£1.31)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LTG. This is calculated by dividing LTG's market cap by their current earnings.
What is LTG's PE Ratio?
PE Ratio15.5x
EarningsUK£47.20m
Market CapUK£722.29m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LTG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.7x
STEM SThree
8.1x1.8%UK£457.4m
PAGE PageGroup
21.9x28.2%UK£1.1b
IPEL Impellam Group
24.8xn/aUK£389.3m
RWA Robert Walters
40x71.0%UK£228.0m
LTG Learning Technologies Group
15.5x-9.0%UK£731.8m

Price-To-Earnings vs Peers: LTG is good value based on its Price-To-Earnings Ratio (15.5x) compared to the peer average (23.7x).

Price to Earnings Ratio vs Industry

How does LTG'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
1.5xn/aUS$20.36m
No more companies available in this PE range
LTG 15.5xIndustry Avg. 23.1xNo. of Companies4PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LTG is good value based on its Price-To-Earnings Ratio (15.5x) compared to the UK Professional Services industry average (23.1x).

Price to Earnings Ratio vs Fair Ratio

What is LTG'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.

LTG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.5x
Fair PE Ratio16.6x

Price-To-Earnings vs Fair Ratio: LTG is good value based on its Price-To-Earnings Ratio (15.5x) compared to the estimated Fair Price-To-Earnings Ratio (16.6x).

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 LTG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.92
UK£0.94
+1.9%
15.8%UK£1.20UK£0.75n/a6
Nov ’25UK£0.91
UK£0.94
+3.9%
15.8%UK£1.20UK£0.75n/a6
Oct ’25UK£0.93
UK£0.89
-4.4%
11.5%UK£1.00UK£0.75n/a5
Sep ’25UK£0.69
UK£0.94
+36.5%
19.2%UK£1.31UK£0.75n/a7
Aug ’25UK£0.70
UK£0.99
+42.0%
20.4%UK£1.31UK£0.75n/a7
Jul ’25UK£0.84
UK£1.06
+25.7%
20.9%UK£1.49UK£0.75n/a7
Jun ’25UK£0.85
UK£1.06
+24.7%
20.9%UK£1.49UK£0.75n/a7
May ’25UK£0.72
UK£1.11
+53.7%
29.8%UK£1.85UK£0.75n/a7
Apr ’25UK£0.85
UK£1.17
+36.7%
26.3%UK£1.85UK£0.80n/a7
Mar ’25UK£0.84
UK£1.17
+39.2%
26.3%UK£1.85UK£0.80n/a7
Feb ’25UK£0.81
UK£1.20
+48.3%
26.7%UK£1.85UK£0.80n/a6
Jan ’25UK£0.81
UK£1.29
+59.5%
29.4%UK£1.85UK£0.80n/a6
Dec ’24UK£0.73
UK£1.29
+76.3%
29.4%UK£1.85UK£0.80n/a6
Nov ’24UK£0.64
UK£1.32
+106.5%
26.6%UK£1.85UK£0.95UK£0.916
Oct ’24UK£0.64
UK£1.32
+105.2%
26.6%UK£1.85UK£0.95UK£0.936
Sep ’24UK£0.78
UK£1.32
+68.3%
26.6%UK£1.85UK£0.95UK£0.696
Aug ’24UK£0.74
UK£1.37
+85.3%
22.9%UK£1.85UK£0.95UK£0.707
Jul ’24UK£0.83
UK£1.58
+91.0%
20.7%UK£2.05UK£1.20UK£0.847
Jun ’24UK£1.01
UK£1.58
+56.3%
20.7%UK£2.05UK£1.20UK£0.857
May ’24UK£1.13
UK£1.68
+49.2%
20.1%UK£2.05UK£1.20UK£0.727
Apr ’24UK£1.29
UK£1.76
+36.2%
14.0%UK£2.05UK£1.40UK£0.857
Mar ’24UK£1.40
UK£1.76
+25.2%
14.0%UK£2.05UK£1.40UK£0.847
Feb ’24UK£1.40
UK£1.76
+25.5%
14.0%UK£2.05UK£1.40UK£0.817
Jan ’24UK£1.15
UK£1.81
+56.6%
17.5%UK£2.35UK£1.40UK£0.817
Dec ’23UK£1.33
UK£1.81
+36.1%
17.5%UK£2.35UK£1.40UK£0.737
Nov ’23UK£1.12
UK£1.84
+65.3%
17.4%UK£2.35UK£1.40UK£0.647

Analyst Forecast: Target price is less than 20% higher than the current share price.

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