DWF Group plc

BATS-CHIXE:DWFL Stock Report

Market Cap: UK£316.4m

DWF Group Valuation

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

Below Fair Value: DWFL (£1) is trading below our estimate of fair value (£1.56)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for DWFL. This is calculated by dividing DWFL's market cap by their current earnings.
What is DWFL's PE Ratio?
PE Ratio25.4x
EarningsUK£12.45m
Market CapUK£316.39m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for DWFL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average32.5x
FNTL Fintel
49.6x34.0%UK£292.8m
WIL Wilmington
20.4x7.3%UK£350.9m
SAG Science Group
34.7x18.3%UK£209.7m
KEYS Keystone Law Group
25.1x4.5%UK£197.5m
DWFL DWF Group
25.4x47.9%UK£316.4m

Price-To-Earnings vs Peers: DWFL is expensive based on its Price-To-Earnings Ratio (25.4x) compared to the peer average (18.4x).

Price to Earnings Ratio vs Industry

How does DWFL'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$20.71m
No more companies available in this PE range
No. of Companies4PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DWFL is expensive based on its Price-To-Earnings Ratio (25.4x) compared to the UK Professional Services industry average (18.2x).

Price to Earnings Ratio vs Fair Ratio

What is DWFL'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.

DWFL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.4x
Fair PE Ratio37.8x

Price-To-Earnings vs Fair Ratio: DWFL is good value based on its Price-To-Earnings Ratio (25.4x) compared to the estimated Fair Price-To-Earnings Ratio (37.8x).

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 DWFL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
UK£1.13
0%
20.9%UK£1.60UK£0.97n/a5
Nov ’25n/a
UK£1.13
0%
20.9%UK£1.60UK£0.97n/a5
Oct ’25n/a
UK£1.13
0%
20.9%UK£1.60UK£0.97n/a5
Sep ’25n/a
UK£1.13
0%
20.9%UK£1.60UK£0.97n/a5
Aug ’25n/a
UK£1.13
0%
20.9%UK£1.60UK£0.97n/a5
Jul ’25n/a
UK£1.13
0%
20.9%UK£1.60UK£0.97n/a5
Jun ’25n/a
UK£1.13
0%
20.9%UK£1.60UK£0.97n/a5
May ’25n/a
UK£1.13
0%
20.9%UK£1.60UK£0.97n/a5
Apr ’25n/a
UK£1.13
0%
20.9%UK£1.60UK£0.97n/a5
Mar ’25n/a
UK£1.13
0%
20.9%UK£1.60UK£0.97n/a5
Feb ’25n/a
UK£1.13
0%
20.9%UK£1.60UK£0.97n/a5
Jan ’25n/a
UK£1.13
0%
20.9%UK£1.60UK£0.97n/a5
Dec ’24n/a
UK£1.13
0%
20.9%UK£1.60UK£0.97n/a5
Nov ’24n/a
UK£1.13
0%
20.9%UK£1.60UK£0.97n/a5
Oct ’24UK£1.00
UK£1.13
+13.9%
20.9%UK£1.60UK£0.97n/a5
Sep ’24UK£0.98
UK£1.13
+16.2%
20.9%UK£1.60UK£0.97n/a5
Aug ’24UK£0.97
UK£1.14
+17.5%
20.5%UK£1.60UK£1.00n/a5
Jul ’24UK£0.62
UK£1.02
+64.5%
34.7%UK£1.60UK£0.50n/a5
Jun ’24UK£0.59
UK£1.09
+85.4%
32.9%UK£1.60UK£0.50n/a5
May ’24UK£0.64
UK£1.32
+108.2%
12.3%UK£1.60UK£1.10n/a5
Apr ’24UK£0.67
UK£1.32
+96.4%
12.3%UK£1.60UK£1.10n/a5
Mar ’24UK£0.72
UK£1.32
+83.4%
12.3%UK£1.60UK£1.10n/a5
Feb ’24UK£0.82
UK£1.36
+66.3%
11.5%UK£1.60UK£1.10n/a7
Jan ’24UK£0.79
UK£1.36
+71.9%
11.5%UK£1.60UK£1.10n/a7
Dec ’23UK£0.77
UK£1.36
+77.1%
11.5%UK£1.60UK£1.10n/a7
Nov ’23UK£0.71
UK£1.41
+99.2%
9.5%UK£1.60UK£1.20n/a7

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

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