The Restaurant Group plc

BATS-CHIXE:RTNL Stock Report

Market Cap: UK£498.9m

Restaurant Group Valuation

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

Below Fair Value: RTNL (£0.65) is trading above our estimate of fair value (£0.43)

Significantly Below Fair Value: RTNL is trading above our estimate of fair value.

Key Valuation Metric

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

Key metric: As RTNL is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for RTNL. This is calculated by dividing RTNL's market cap by their current revenue.
What is RTNL's PS Ratio?
PS Ratio0.5x
SalesUK£927.00m
Market CapUK£498.86m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for RTNL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.8x
YNGA Young's Brewery
1.4x5.6%UK£518.7m
FSTA Fuller Smith & Turner
1x5.0%UK£377.7m
JDW J D Wetherspoon
0.4x4.1%UK£745.0m
MARS Marston's
0.3x2.8%UK£244.2m
RTNL Restaurant Group
0.5x2.6%UK£498.9m

Price-To-Sales vs Peers: RTNL is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (1x).

Price to Sales Ratio vs Industry

How does RTNL's PS Ratio compare vs other companies in the GB Hospitality Industry?

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
EVOK Evoke
0.1x6.6%US$309.71m
TRC Revel Collective
0.06x-3.1%US$10.92m
NGHT Nightcap
0.1xn/aUS$8.62m
COM Comptoir Group
0.1xn/aUS$5.68m
No. of Companies7PS00.61.21.82.43+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: RTNL is good value based on its Price-To-Sales Ratio (0.5x) compared to the UK Hospitality industry average (1x).

Price to Sales Ratio vs Fair Ratio

What is RTNL'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.

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

Price-To-Sales vs Fair Ratio: RTNL 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 RTNL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
UK£0.67
0%
9.1%UK£0.77UK£0.56n/a12
Nov ’25n/a
UK£0.67
0%
9.1%UK£0.77UK£0.56n/a12
Oct ’25n/a
UK£0.67
0%
9.1%UK£0.77UK£0.56n/a12
Sep ’25n/a
UK£0.67
0%
9.1%UK£0.77UK£0.56n/a12
Aug ’25n/a
UK£0.67
0%
9.1%UK£0.77UK£0.56n/a12
Jul ’25n/a
UK£0.67
0%
9.1%UK£0.77UK£0.56n/a12
Jun ’25n/a
UK£0.67
0%
9.1%UK£0.77UK£0.56n/a12
May ’25n/a
UK£0.67
0%
9.1%UK£0.77UK£0.56n/a12
Apr ’25n/a
UK£0.67
0%
9.1%UK£0.77UK£0.56n/a12
Mar ’25n/a
UK£0.67
0%
9.1%UK£0.77UK£0.56n/a12
Feb ’25n/a
UK£0.67
0%
9.1%UK£0.77UK£0.56n/a12
Jan ’25n/a
UK£0.67
0%
9.1%UK£0.77UK£0.56n/a12
Dec ’24UK£0.65
UK£0.67
+3.2%
9.1%UK£0.77UK£0.56n/a12
Nov ’24UK£0.68
UK£0.65
-4.9%
13.2%UK£0.77UK£0.45n/a12
Oct ’24UK£0.51
UK£0.63
+24.5%
16.0%UK£0.77UK£0.45n/a13
Sep ’24UK£0.42
UK£0.61
+44.2%
15.5%UK£0.76UK£0.45n/a12
Aug ’24UK£0.42
UK£0.61
+46.9%
14.9%UK£0.76UK£0.45n/a13
Jul ’24UK£0.38
UK£0.59
+55.5%
15.2%UK£0.72UK£0.45n/a14
Jun ’24UK£0.44
UK£0.58
+32.8%
17.3%UK£0.72UK£0.42n/a14
May ’24UK£0.40
UK£0.56
+38.4%
17.2%UK£0.70UK£0.35n/a14
Apr ’24UK£0.41
UK£0.56
+36.6%
17.2%UK£0.70UK£0.35n/a14
Mar ’24UK£0.38
UK£0.54
+43.9%
16.8%UK£0.70UK£0.35n/a13
Feb ’24UK£0.37
UK£0.54
+48.7%
16.8%UK£0.70UK£0.35n/a13
Jan ’24UK£0.31
UK£0.56
+79.7%
17.1%UK£0.70UK£0.35n/a14
Dec ’23UK£0.30
UK£0.66
+120.3%
32.4%UK£1.30UK£0.35UK£0.6514
Nov ’23UK£0.34
UK£0.74
+113.5%
34.6%UK£1.30UK£0.35UK£0.6814

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

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