Ricardo plc

BATS-CHIXE:RCDOl Stock Report

Market Cap: UK£243.3m

Ricardo Valuation

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

Below Fair Value: RCDOl (£3.91) is trading below our estimate of fair value (£13.77)

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

Key Valuation Metric

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

Key metric: As RCDOl is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for RCDOl. This is calculated by dividing RCDOl's market cap by their current revenue.
What is RCDOl's PS Ratio?
PS Ratio0.5x
SalesUK£474.70m
Market CapUK£243.25m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for RCDOl vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.4x
SAG Science Group
1.9x1.6%UK£209.7m
KEYS Keystone Law Group
2.1x5.3%UK£197.5m
DWF DWF Group
0.7x2.6%UK£316.4m
GTLY Gateley (Holdings)
1x5.5%UK£175.7m
RCDOl Ricardo
0.5x4.1%UK£243.3m

Price-To-Sales vs Peers: RCDOl is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (1.7x).

Price to Sales Ratio vs Industry

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

10 CompaniesPrice / SalesEstimated GrowthMarket Cap
HAS Hays
0.2x1.0%US$1.58b
IPEL Impellam Group
0.2xn/aUS$489.91m
CPI Capita
0.1x1.3%US$368.86m
RWA Robert Walters
0.2x0.02%US$297.92m
No. of Companies10PS012345+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: RCDOl is good value based on its Price-To-Sales Ratio (0.5x) compared to the UK Professional Services industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is RCDOl'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.

RCDOl PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.5x
Fair PS Ratio0.6x

Price-To-Sales vs Fair Ratio: RCDOl is good value based on its Price-To-Sales Ratio (0.5x) compared to the estimated Fair Price-To-Sales Ratio (0.6x).

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 RCDOl forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£3.91
UK£6.50
+66.4%
16.1%UK£7.75UK£3.90n/a9
Nov ’25UK£4.29
UK£6.50
+51.6%
16.1%UK£7.75UK£3.90n/a9
Oct ’25UK£4.45
UK£6.50
+46.2%
16.1%UK£7.75UK£3.90n/a9
Sep ’25UK£5.04
UK£6.54
+29.7%
13.3%UK£7.75UK£4.60n/a9
Aug ’25UK£5.16
UK£6.52
+26.3%
14.1%UK£7.75UK£4.60n/a8
Jul ’25UK£4.93
UK£6.52
+32.4%
15.1%UK£7.75UK£4.60n/a7
Jun ’25UK£4.87
UK£6.05
+24.2%
20.7%UK£7.75UK£4.00n/a7
May ’25UK£4.54
UK£6.05
+33.2%
20.7%UK£7.75UK£4.00n/a7
Apr ’25UK£4.52
UK£6.08
+34.5%
19.3%UK£7.75UK£4.00n/a8
Mar ’25UK£4.23
UK£6.03
+42.5%
19.8%UK£7.75UK£4.00n/a7
Feb ’25UK£4.36
UK£6.13
+40.5%
18.0%UK£7.75UK£4.00n/a7
Jan ’25UK£4.94
UK£6.13
+24.0%
18.0%UK£7.75UK£4.00n/a7
Dec ’24UK£4.84
UK£6.13
+26.6%
18.0%UK£7.75UK£4.00n/a7
Nov ’24UK£4.39
UK£6.13
+39.5%
18.0%UK£7.75UK£4.00UK£4.297
Oct ’24UK£5.06
UK£6.18
+22.1%
16.9%UK£7.75UK£4.00UK£4.458
Sep ’24UK£5.20
UK£6.30
+21.2%
17.0%UK£7.75UK£4.00UK£5.047
Aug ’24UK£5.88
UK£6.34
+7.8%
17.0%UK£7.75UK£4.00UK£5.167
Jul ’24UK£5.68
UK£6.13
+7.9%
14.7%UK£6.75UK£4.00UK£4.937
Jun ’24UK£5.60
UK£6.13
+9.5%
14.7%UK£6.75UK£4.00UK£4.877
May ’24UK£6.04
UK£6.13
+1.5%
14.7%UK£6.75UK£4.00UK£4.547
Apr ’24UK£5.41
UK£6.04
+11.6%
14.5%UK£6.75UK£4.00UK£4.528
Mar ’24UK£5.69
UK£5.59
-1.8%
13.2%UK£6.60UK£4.00UK£4.238
Feb ’24UK£5.22
UK£5.59
+7.1%
13.2%UK£6.60UK£4.00UK£4.368
Jan ’24UK£4.79
UK£5.34
+11.7%
15.0%UK£6.60UK£4.00UK£4.948
Dec ’23UK£4.60
UK£5.34
+16.1%
15.0%UK£6.60UK£4.00UK£4.848
Nov ’23UK£4.47
UK£5.34
+19.5%
15.0%UK£6.60UK£4.00UK£4.398

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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