PPHE Hotel Group Limited

BATS-CHIXE:PPHL Stock Report

Market Cap: UK£570.0m

PPHE Hotel Group Valuation

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

Below Fair Value: PPHL (£13.45) is trading below our estimate of fair value (£24.79)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

PPHL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.4x
Enterprise Value/EBITDA14.9x
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PPHL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average29.6x
OTB On the Beach Group
14.8x19.2%UK£233.8m
TRN Trainline
43x22.4%UK£1.5b
HSW Hostelworld Group
43.3x23.7%UK£189.2m
WTB Whitbread
17.2x11.1%UK£5.4b
PPHL PPHE Hotel Group
25.4x26.8%UK£570.0m

Price-To-Earnings vs Peers: PPHL is good value based on its Price-To-Earnings Ratio (25.4x) compared to the peer average (29.8x).


Price to Earnings Ratio vs Industry

How does PPHL's PE Ratio compare vs other companies in the GB Hospitality Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a34.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a34.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: PPHL is expensive based on its Price-To-Earnings Ratio (25.4x) compared to the UK Hospitality industry average (22x).


Price to Earnings Ratio vs Fair Ratio

What is PPHL'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.

PPHL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.4x
Fair PE Ratio24.9x

Price-To-Earnings vs Fair Ratio: PPHL is expensive based on its Price-To-Earnings Ratio (25.4x) compared to the estimated Fair Price-To-Earnings Ratio (24.9x).


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 PPHL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£13.28
UK£22.00
+65.7%
26.5%UK£28.20UK£15.46n/a4
May ’25UK£14.80
UK£22.00
+48.6%
26.5%UK£28.20UK£15.46n/a4
Apr ’25UK£14.18
UK£21.62
+52.5%
24.3%UK£28.19UK£15.50n/a5
Mar ’25UK£12.95
UK£21.63
+67.1%
24.3%UK£28.22UK£15.51n/a5
Feb ’25UK£12.10
UK£19.50
+61.2%
19.7%UK£25.56UK£15.49n/a4
Jan ’25UK£11.90
UK£19.34
+62.6%
21.2%UK£25.79UK£14.99n/a4
Dec ’24UK£12.75
UK£17.69
+38.7%
9.6%UK£20.03UK£16.02n/a3
Nov ’24UK£10.15
UK£17.69
+74.3%
9.6%UK£20.03UK£16.02n/a3
Oct ’24UK£10.60
UK£17.64
+66.4%
9.6%UK£19.95UK£15.96n/a3
Sep ’24UK£10.90
UK£17.68
+62.2%
9.6%UK£20.01UK£16.01n/a3
Aug ’24UK£10.35
UK£17.61
+70.2%
9.5%UK£19.91UK£16.00n/a3
Jul ’24UK£11.05
UK£17.61
+59.4%
9.5%UK£19.91UK£16.00n/a3
Jun ’24UK£10.95
UK£17.34
+58.3%
10.9%UK£20.01UK£16.00UK£13.283
May ’24UK£11.30
UK£17.34
+53.4%
10.9%UK£20.01UK£16.00UK£14.803
Apr ’24UK£11.40
UK£17.24
+51.2%
10.7%UK£19.85UK£15.88UK£14.183
Mar ’24UK£11.15
UK£16.44
+47.5%
17.6%UK£20.18UK£13.12UK£12.953
Feb ’24UK£12.75
UK£16.32
+28.0%
17.6%UK£19.99UK£12.99UK£12.103
Jan ’24UK£12.35
UK£16.33
+32.2%
17.3%UK£19.93UK£13.04UK£11.903
Dec ’23UK£12.55
UK£18.92
+50.7%
11.1%UK£20.88UK£15.99UK£12.753
Nov ’23UK£12.90
UK£18.92
+46.7%
11.1%UK£20.88UK£15.99UK£10.153
Oct ’23UK£13.50
UK£19.07
+41.3%
11.6%UK£21.12UK£15.99UK£10.603
Sep ’23UK£14.05
UK£19.00
+35.2%
11.4%UK£21.00UK£16.00UK£10.903
Aug ’23n/a
UK£19.11
0%
11.7%UK£20.95UK£15.96UK£10.353
Jul ’23UK£14.80
UK£19.11
+29.1%
11.7%UK£20.95UK£15.96UK£11.053
Jun ’23UK£15.70
UK£19.06
+21.4%
11.3%UK£21.05UK£16.06UK£10.953

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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