SSP Group plc

BATS-CHIXE:SSPGL Stock Report

Market Cap: UK£1.3b

SSP Group Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: SSPGL (£1.6) is trading below our estimate of fair value (£1.77)

Significantly Below Fair Value: SSPGL 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 SSPGL?

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

The above table shows the Price to Sales ratio for SSPGL. This is calculated by dividing SSPGL's market cap by their current revenue.
What is SSPGL's PS Ratio?
PS Ratio0.4x
SalesUK£3.21b
Market CapUK£1.27b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SSPGL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.1x
MAB Mitchells & Butlers
0.6x3.6%UK£1.5b
DOM Domino's Pizza Group
2x6.0%UK£1.3b
JDW J D Wetherspoon
0.4x4.1%UK£755.1m
GRG Greggs
1.4x9.2%UK£2.7b
SSPGL SSP Group
0.4x6.2%UK£1.3b

Price-To-Sales vs Peers: SSPGL is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (1.1x).

Price to Sales Ratio vs Industry

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

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
EVOK Evoke
0.1x6.6%US$321.68m
TRC Revel Collective
0.06x-3.1%US$10.93m
NGHT Nightcap
0.1xn/aUS$8.62m
COM Comptoir Group
0.1xn/aUS$5.45m
No. of Companies7PS00.61.21.82.43+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SSPGL is good value based on its Price-To-Sales Ratio (0.4x) compared to the UK Hospitality industry average (1.1x).

Price to Sales Ratio vs Fair Ratio

What is SSPGL'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.

SSPGL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ratio1.2x

Price-To-Sales vs Fair Ratio: SSPGL is good value based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).

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 SSPGL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.60
UK£2.49
+55.5%
21.1%UK£3.30UK£1.60n/a15
Nov ’25UK£1.63
UK£2.64
+61.6%
22.7%UK£3.50UK£1.60n/a15
Oct ’25UK£1.58
UK£2.70
+71.0%
21.6%UK£3.50UK£1.60n/a16
Sep ’25UK£1.71
UK£2.78
+61.9%
19.8%UK£3.50UK£1.60n/a16
Aug ’25UK£1.74
UK£2.81
+61.0%
19.3%UK£3.50UK£1.60n/a16
Jul ’25UK£1.47
UK£2.79
+89.5%
19.1%UK£3.50UK£1.60n/a16
Jun ’25UK£1.66
UK£2.92
+75.4%
12.0%UK£3.50UK£2.25n/a16
May ’25UK£1.95
UK£2.96
+52.3%
11.4%UK£3.50UK£2.25n/a16
Apr ’25UK£2.19
UK£3.03
+38.3%
9.2%UK£3.50UK£2.55n/a16
Mar ’25UK£2.19
UK£3.03
+38.7%
9.2%UK£3.50UK£2.55n/a16
Feb ’25UK£2.24
UK£3.04
+35.5%
9.0%UK£3.50UK£2.60n/a16
Jan ’25UK£2.35
UK£3.04
+29.6%
8.8%UK£3.50UK£2.60n/a16
Dec ’24UK£2.11
UK£3.06
+44.6%
10.2%UK£3.60UK£2.45n/a16
Nov ’24UK£1.85
UK£3.07
+65.6%
10.5%UK£3.60UK£2.45UK£1.6316
Oct ’24UK£2.03
UK£3.08
+52.0%
10.9%UK£3.60UK£2.45UK£1.5817
Sep ’24UK£2.34
UK£3.21
+37.3%
11.3%UK£4.00UK£2.60UK£1.7118
Aug ’24UK£2.44
UK£3.21
+31.7%
11.3%UK£4.00UK£2.60UK£1.7418
Jul ’24UK£2.53
UK£3.21
+27.0%
11.3%UK£4.00UK£2.60UK£1.4718
Jun ’24UK£2.70
UK£3.16
+17.2%
11.0%UK£4.00UK£2.60UK£1.6619
May ’24UK£2.58
UK£3.11
+20.6%
11.5%UK£4.00UK£2.40UK£1.9519
Apr ’24UK£2.46
UK£3.12
+27.0%
11.6%UK£4.00UK£2.40UK£2.1918
Mar ’24UK£2.55
UK£3.11
+22.1%
11.5%UK£4.00UK£2.40UK£2.1919
Feb ’24UK£2.65
UK£3.09
+16.4%
12.3%UK£4.00UK£2.40UK£2.2419
Jan ’24UK£2.29
UK£3.06
+33.7%
13.3%UK£4.00UK£2.45UK£2.3518
Dec ’23UK£2.09
UK£2.99
+42.8%
11.0%UK£3.50UK£2.45UK£2.1117
Nov ’23UK£2.08
UK£3.03
+46.0%
11.9%UK£3.55UK£2.45UK£1.8517

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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