REACT Group PLC

AIM:REAT Stock Report

Market Cap: UK£19.9m

REACT Group Valuation

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

Below Fair Value: REAT (£0.93) is trading below our estimate of fair value (£1.45)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for REAT. This is calculated by dividing REAT's market cap by their current earnings.
What is REAT's PE Ratio?
PE Ratio89.4x
EarningsUK£223.00k
Market CapUK£19.94m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for REAT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.8x
KINO Kinovo
6.9x-1.3%UK£35.4m
WATR Water Intelligence
18.4x15.6%UK£70.9m
RWI Renewi
18.4x36.5%UK£464.8m
FIH FIH group
15.6xn/aUK£30.7m
REAT REACT Group
89.4xn/aUK£19.9m

Price-To-Earnings vs Peers: REAT is expensive based on its Price-To-Earnings Ratio (89.4x) compared to the peer average (14.8x).

Price to Earnings Ratio vs Industry

How does REAT's PE Ratio compare vs other companies in the European Commercial Services Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
REAT 89.4xIndustry Avg. 14.6xNo. of Companies13PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: REAT is expensive based on its Price-To-Earnings Ratio (89.4x) compared to the European Commercial Services industry average (14.6x).

Price to Earnings Ratio vs Fair Ratio

What is REAT'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.

REAT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio89.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate REAT's Price-To-Earnings Fair Ratio for valuation analysis.

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 REAT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.93
UK£1.09
+17.3%
10.6%UK£1.20UK£0.97n/a2
Nov ’25UK£0.90
UK£1.09
+21.2%
10.6%UK£1.20UK£0.97n/a2
Oct ’25UK£0.80
UK£0.98
+23.9%
1.5%UK£1.00UK£0.97n/a2
Sep ’25UK£0.77
UK£0.98
+28.8%
1.5%UK£1.00UK£0.97n/a2
Aug ’25UK£0.77
UK£0.98
+27.9%
1.5%UK£1.00UK£0.97n/a2
Jul ’25UK£0.73
UK£0.98
+34.9%
1.5%UK£1.00UK£0.97n/a2
Jun ’25UK£0.76
UK£0.98
+30.5%
1.5%UK£1.00UK£0.97n/a2
May ’25UK£0.73
UK£0.98
+34.0%
1.5%UK£1.00UK£0.97n/a2
Nov ’24UK£0.85
UK£0.88
+2.9%
14.3%UK£1.00UK£0.75UK£0.902
Oct ’24UK£0.82
UK£0.88
+6.1%
14.3%UK£1.00UK£0.75UK£0.802
Sep ’24UK£0.75
UK£0.88
+16.7%
14.3%UK£1.00UK£0.75UK£0.772
Aug ’24UK£0.78
UK£0.88
+12.9%
14.3%UK£1.00UK£0.75UK£0.772
Jul ’24UK£0.68
UK£0.88
+29.6%
14.3%UK£1.00UK£0.75UK£0.732
Jun ’24UK£0.64
UK£0.80
+25.5%
6.3%UK£0.85UK£0.75UK£0.762
May ’24UK£0.60
UK£0.80
+33.3%
6.3%UK£0.85UK£0.75UK£0.732

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

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