Coats Group Valuation

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

Below Fair Value: COA (£0.96) is trading below our estimate of fair value (£1.03)

Significantly Below Fair Value: COA is trading below fair value, but not by a significant amount.


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for COA. This is calculated by dividing COA's market cap by their current earnings.
What is COA's PE Ratio?
PE Ratio19.6x
EarningsUS$99.40m
Market CapUS$1.95b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for COA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average35.6x
BRBY Burberry Group
87.4x42.7%UK£3.3b
DOCS Dr. Martens
23.4x40.5%UK£688.6m
VTY Vistry Group
8.7x13.3%UK£2.2b
BWY Bellway
23.1x21.7%UK£3.0b
COA Coats Group
19.6x15.5%UK£1.5b

Price-To-Earnings vs Peers: COA is good value based on its Price-To-Earnings Ratio (19.6x) compared to the peer average (35.6x).


Price to Earnings Ratio vs Industry

How does COA's PE Ratio compare vs other companies in the European Luxury Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
COA 19.6xIndustry Avg. 14.8xNo. of Companies9PE01020304050+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: COA is expensive based on its Price-To-Earnings Ratio (19.6x) compared to the European Luxury industry average (14.8x).


Price to Earnings Ratio vs Fair Ratio

What is COA'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.

COA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.6x
Fair PE Ratio18.9x

Price-To-Earnings vs Fair Ratio: COA is expensive based on its Price-To-Earnings Ratio (19.6x) compared to the estimated Fair Price-To-Earnings Ratio (18.9x).


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 COA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.96
UK£1.22
+26.7%
6.1%UK£1.35UK£1.10n/a8
Dec ’25UK£0.96
UK£1.22
+26.6%
6.1%UK£1.35UK£1.10n/a8
Nov ’25UK£0.95
UK£1.21
+27.6%
5.7%UK£1.35UK£1.10n/a8
Oct ’25UK£1.00
UK£1.15
+15.3%
12.5%UK£1.35UK£0.80n/a9
Sep ’25UK£0.98
UK£1.11
+12.6%
11.7%UK£1.30UK£0.80n/a9
Aug ’25UK£1.01
UK£1.03
+2.4%
12.7%UK£1.30UK£0.80n/a9
Jul ’25UK£0.79
UK£0.99
+25.6%
8.6%UK£1.10UK£0.80n/a9
Jun ’25UK£0.86
UK£0.99
+15.5%
8.6%UK£1.10UK£0.80n/a9
May ’25UK£0.82
UK£0.98
+19.8%
8.5%UK£1.10UK£0.80n/a9
Apr ’25UK£0.81
UK£0.98
+20.7%
8.5%UK£1.10UK£0.80n/a9
Mar ’25UK£0.69
UK£0.99
+42.7%
8.9%UK£1.10UK£0.80n/a9
Feb ’25UK£0.71
UK£0.99
+39.9%
8.9%UK£1.10UK£0.80n/a9
Jan ’25UK£0.77
UK£0.99
+27.9%
8.9%UK£1.10UK£0.80n/a9
Dec ’24UK£0.68
UK£0.99
+46.4%
8.9%UK£1.10UK£0.80UK£0.969
Nov ’24UK£0.68
UK£1.01
+48.7%
6.0%UK£1.10UK£0.90UK£0.959
Oct ’24UK£0.73
UK£1.01
+38.4%
6.0%UK£1.10UK£0.90UK£1.009
Sep ’24UK£0.77
UK£1.01
+32.3%
6.0%UK£1.10UK£0.90UK£0.989
Aug ’24UK£0.74
UK£1.02
+37.8%
6.3%UK£1.12UK£0.90UK£1.019
Jul ’24UK£0.70
UK£1.02
+47.2%
5.9%UK£1.12UK£0.90UK£0.799
Jun ’24UK£0.69
UK£1.02
+49.1%
5.9%UK£1.12UK£0.90UK£0.869
May ’24UK£0.78
UK£1.04
+32.4%
3.5%UK£1.12UK£1.00UK£0.829
Apr ’24UK£0.74
UK£1.04
+41.1%
3.5%UK£1.12UK£1.00UK£0.818
Mar ’24UK£0.73
UK£1.00
+37.3%
7.1%UK£1.13UK£0.90UK£0.698
Feb ’24UK£0.72
UK£1.00
+39.0%
7.1%UK£1.13UK£0.90UK£0.718
Jan ’24UK£0.66
UK£0.99
+49.3%
7.5%UK£1.13UK£0.90UK£0.777
Dec ’23UK£0.67
UK£0.99
+46.9%
7.5%UK£1.13UK£0.90UK£0.687

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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