Mitie Group Valuation

Is MTO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: MTO (£1.09) is trading below our estimate of fair value (£1.89)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MTO. This is calculated by dividing MTO's market cap by their current earnings.
What is MTO's PE Ratio?
PE Ratio11.2x
EarningsUK£120.60m
Market CapUK£1.35b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MTO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.2x
SRP Serco Group
10.6x1.9%UK£1.5b
RWI Renewi
25.8x36.6%UK£645.3m
RTO Rentokil Initial
26.1x14.9%UK£10.2b
WATR Water Intelligence
18.2x15.6%UK£69.1m
MTO Mitie Group
11.2x11.3%UK£1.4b

Price-To-Earnings vs Peers: MTO is good value based on its Price-To-Earnings Ratio (11.2x) compared to the peer average (20.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
MTO 11.2xIndustry Avg. 14.9xNo. of Companies3PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MTO is good value based on its Price-To-Earnings Ratio (11.2x) compared to the European Commercial Services industry average (14.9x).


Price to Earnings Ratio vs Fair Ratio

What is MTO'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.

MTO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.2x
Fair PE Ratio22.8x

Price-To-Earnings vs Fair Ratio: MTO is good value based on its Price-To-Earnings Ratio (11.2x) compared to the estimated Fair Price-To-Earnings Ratio (22.8x).


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 MTO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.09
UK£1.44
+31.9%
3.4%UK£1.50UK£1.35n/a5
Dec ’25UK£1.09
UK£1.44
+31.9%
3.4%UK£1.50UK£1.35n/a5
Nov ’25UK£1.18
UK£1.44
+22.3%
3.4%UK£1.50UK£1.35n/a5
Oct ’25UK£1.18
UK£1.44
+21.7%
3.4%UK£1.50UK£1.35n/a5
Sep ’25UK£1.24
UK£1.44
+16.0%
3.4%UK£1.50UK£1.35n/a5
Aug ’25UK£1.21
UK£1.44
+19.2%
3.4%UK£1.50UK£1.35n/a5
Jul ’25UK£1.17
UK£1.43
+22.3%
2.7%UK£1.45UK£1.35n/a5
Jun ’25UK£1.21
UK£1.41
+16.2%
4.1%UK£1.45UK£1.30n/a5
May ’25UK£1.16
UK£1.41
+21.4%
4.1%UK£1.45UK£1.30n/a5
Apr ’25UK£1.05
UK£1.29
+23.2%
4.2%UK£1.37UK£1.25n/a5
Mar ’25UK£1.07
UK£1.29
+20.7%
4.2%UK£1.37UK£1.25n/a5
Feb ’25UK£1.03
UK£1.29
+25.6%
4.2%UK£1.37UK£1.25n/a5
Jan ’25UK£0.99
UK£1.29
+30.3%
4.2%UK£1.37UK£1.25n/a5
Dec ’24UK£1.01
UK£1.29
+28.4%
4.2%UK£1.37UK£1.25UK£1.095
Nov ’24UK£0.98
UK£1.26
+28.3%
3.5%UK£1.35UK£1.22UK£1.185
Oct ’24UK£1.03
UK£1.19
+16.0%
4.0%UK£1.25UK£1.15UK£1.185
Sep ’24UK£0.98
UK£1.18
+21.2%
4.6%UK£1.25UK£1.12UK£1.245
Aug ’24UK£1.02
UK£1.18
+15.6%
4.6%UK£1.25UK£1.12UK£1.215
Jul ’24UK£0.96
UK£1.18
+22.8%
4.6%UK£1.25UK£1.12UK£1.175
Jun ’24UK£0.89
UK£1.03
+15.0%
12.7%UK£1.25UK£0.90UK£1.215
May ’24UK£0.92
UK£1.03
+11.7%
12.7%UK£1.25UK£0.90UK£1.165
Apr ’24UK£0.82
UK£0.97
+18.6%
7.5%UK£1.10UK£0.90UK£1.055
Mar ’24UK£0.80
UK£0.97
+21.6%
7.5%UK£1.10UK£0.90UK£1.075
Feb ’24UK£0.79
UK£0.97
+22.3%
7.5%UK£1.10UK£0.90UK£1.035
Jan ’24UK£0.75
UK£0.97
+30.0%
7.5%UK£1.10UK£0.90UK£0.995
Dec ’23UK£0.75
UK£0.95
+26.0%
8.0%UK£1.10UK£0.90UK£1.015

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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