Staffline Group Valuation

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

STAF (£0.26) is trading above our estimate of [[fair value]] (£0.19)

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

Below Fair Value: STAF (£0.26) is trading above our estimate of fair value (£0.19)

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

Key Valuation Metric

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

Key metric: As STAF is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for STAF. This is calculated by dividing STAF's market cap by their current revenue.
What is STAF's PS Ratio?
PS Ratio	0.04x
Sales	UK£988.40m
Market Cap	UK£35.25m

STAF 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	0.05x
Enterprise Value/EBITDA	3.8x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for STAF 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	0.2x
GATC Gattaca	0.07x	8.7%	UK£27.0m
MIND Mind Gym	0.4x	n/a	UK£19.0m
EMR Empresaria Group	0.06x	0.3%	UK£14.6m
RTC RTC Group	0.1x	n/a	UK£13.3m
STAF Staffline Group	0.04x	3.3%	UK£35.3m

Price-To-Sales vs Peers: STAF is good value based on its Price-To-Sales Ratio (0x) compared to the peer average (0.2x).

Price to Sales Ratio vs Industry

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

10 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	0.7x	6.1%
STAF Staffline Group	0.04x	3.3%	US$44.41m
HAS Hays	0.2x	1.0%	US$1.51b
IPEL Impellam Group	0.2x	n/a	US$489.91m

10 Companies		Estimated Growth	Market Cap
Industry Avg.	0.7x	11.6%
STAF Staffline Group	0.04x	105.9%	US$44.41m

No more companies

Price-To-Sales vs Industry: STAF is good value based on its Price-To-Sales Ratio (0x) compared to the UK Professional Services industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is STAF'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.

STAF PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.04x
Fair PS Ratio	0.2x

Price-To-Sales vs Fair Ratio: STAF is good value based on its Price-To-Sales Ratio (0x) compared to the estimated Fair Price-To-Sales Ratio (0.2x).

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.