Water Intelligence Valuation

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

Below Fair Value: WATR (£3.8) is trading below our estimate of fair value (£9.76)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for WATR. This is calculated by dividing WATR's market cap by their current earnings.
What is WATR's PE Ratio?
PE Ratio17.4x
EarningsUS$4.85m
Market CapUS$84.14m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for WATR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average32.8x
KINO Kinovo
7.2x-3.3%UK£38.0m
REAT REACT Group
87xn/aUK£19.4m
RWI Renewi
25.9x36.6%UK£654.1m
MTO Mitie Group
11.2x11.3%UK£1.4b
WATR Water Intelligence
17.4x15.6%UK£66.0m

Price-To-Earnings vs Peers: WATR is good value based on its Price-To-Earnings Ratio (17.4x) compared to the peer average (32.8x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
WATR 17.4xIndustry Avg. 14.9xNo. of Companies14PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WATR is expensive based on its Price-To-Earnings Ratio (17.4x) compared to the European Commercial Services industry average (14.9x).


Price to Earnings Ratio vs Fair Ratio

What is WATR'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.

WATR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.4x
Fair PE Ratio15.8x

Price-To-Earnings vs Fair Ratio: WATR is expensive based on its Price-To-Earnings Ratio (17.4x) compared to the estimated Fair Price-To-Earnings Ratio (15.8x).


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 WATR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£3.80
UK£8.25
+117.1%
3.0%UK£8.50UK£8.00n/a2
Sep ’24UK£4.15
UK£9.00
+116.9%
11.1%UK£10.00UK£8.00UK£4.002
Aug ’24UK£4.45
UK£9.00
+102.2%
11.1%UK£10.00UK£8.00UK£4.152
Jul ’24UK£4.20
UK£9.00
+114.3%
11.1%UK£10.00UK£8.00UK£4.152
Jun ’24UK£4.23
UK£13.17
+211.6%
7.8%UK£14.50UK£12.00UK£3.833
May ’24UK£4.33
UK£13.17
+204.4%
7.8%UK£14.50UK£12.00UK£3.403
Apr ’24UK£4.45
UK£13.17
+195.9%
7.8%UK£14.50UK£12.00UK£3.183
Mar ’24UK£5.05
UK£12.38
+145.0%
13.2%UK£14.50UK£10.00UK£3.634
Feb ’24UK£5.80
UK£12.94
+123.1%
13.8%UK£14.50UK£10.00UK£3.904
Jan ’24UK£6.60
UK£12.94
+96.0%
13.8%UK£14.50UK£10.00UK£4.054
Dec ’23UK£6.50
UK£12.94
+99.0%
13.8%UK£14.50UK£10.00UK£4.134

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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