The Gym Group plc

LSE:GYM Stock Report

Market Cap: UK£292.4m

Gym Group Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: GYM (£1.61) is trading above our estimate of fair value (£1.4)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for GYM. This is calculated by dividing GYM's market cap by their current revenue.
What is GYM's PS Ratio?
PS Ratio1.3x
SalesUK£216.30m
Market CapUK£292.39m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for GYM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.5x
TEG Ten Entertainment Group
2.2x8.1%UK£286.0m
BOWL Hollywood Bowl Group
2.4x7.1%UK£541.2m
NYR Newbury Racecourse
0.8xn/aUK£16.2m
XPF XP Factory
0.4x21.9%UK£18.8m
GYM Gym Group
1.3x8.6%UK£287.7m

Price-To-Sales vs Peers: GYM is good value based on its Price-To-Sales Ratio (1.3x) compared to the peer average (1.5x).

Price to Sales Ratio vs Industry

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

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
EVOK Evoke
0.1x5.9%US$290.25m
TRC Revel Collective
0.06x-3.1%US$10.89m
NGHT Nightcap
0.1xn/aUS$8.62m
COM Comptoir Group
0.1xn/aUS$6.05m
GYM 1.3xIndustry Avg. 1.1xNo. of Companies7PS00.61.21.82.43+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: GYM is expensive based on its Price-To-Sales Ratio (1.3x) compared to the UK Hospitality industry average (1.1x).

Price to Sales Ratio vs Fair Ratio

What is GYM'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.

GYM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.3x
Fair PS Ratio1.8x

Price-To-Sales vs Fair Ratio: GYM is good value based on its Price-To-Sales Ratio (1.3x) compared to the estimated Fair Price-To-Sales Ratio (1.8x).

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 GYM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.61
UK£1.88
+17.0%
10.9%UK£2.25UK£1.45n/a10
Nov ’25UK£1.58
UK£1.88
+19.2%
10.9%UK£2.25UK£1.45n/a10
Oct ’25UK£1.56
UK£1.89
+20.9%
10.6%UK£2.25UK£1.45n/a9
Sep ’25UK£1.40
UK£1.84
+31.7%
11.3%UK£2.25UK£1.45n/a9
Aug ’25UK£1.48
UK£1.81
+21.8%
16.3%UK£2.25UK£1.10n/a9
Jul ’25UK£1.12
UK£1.67
+49.7%
20.3%UK£2.25UK£1.10n/a8
Jun ’25UK£1.27
UK£1.67
+32.2%
20.3%UK£2.25UK£1.10n/a8
May ’25UK£1.10
UK£1.67
+51.4%
21.8%UK£2.25UK£1.10n/a7
Apr ’25UK£1.15
UK£1.66
+44.4%
22.6%UK£2.25UK£1.10n/a7
Mar ’25UK£1.09
UK£1.66
+51.5%
22.6%UK£2.25UK£1.10n/a7
Feb ’25UK£1.06
UK£1.66
+55.7%
22.6%UK£2.25UK£1.10n/a7
Jan ’25UK£1.06
UK£1.65
+55.4%
22.7%UK£2.25UK£1.10n/a7
Dec ’24UK£0.99
UK£1.65
+66.3%
22.7%UK£2.25UK£1.10n/a7
Nov ’24UK£1.02
UK£1.65
+61.4%
22.7%UK£2.25UK£1.10UK£1.587
Oct ’24UK£1.11
UK£1.63
+46.4%
24.5%UK£2.25UK£1.10UK£1.566
Sep ’24UK£1.11
UK£1.63
+46.4%
24.5%UK£2.25UK£1.10UK£1.406
Aug ’24UK£1.03
UK£1.63
+57.2%
24.5%UK£2.25UK£1.10UK£1.486
Jul ’24UK£0.91
UK£1.73
+89.7%
20.4%UK£2.25UK£1.15UK£1.125
Jun ’24UK£0.96
UK£1.73
+79.3%
20.4%UK£2.25UK£1.15UK£1.275
May ’24UK£1.04
UK£1.81
+74.4%
22.2%UK£2.25UK£1.15UK£1.105
Apr ’24UK£0.92
UK£1.81
+96.3%
22.2%UK£2.25UK£1.15UK£1.155
Mar ’24UK£1.23
UK£1.99
+61.7%
14.7%UK£2.42UK£1.60UK£1.097
Feb ’24UK£1.29
UK£1.99
+53.7%
14.7%UK£2.42UK£1.60UK£1.067
Jan ’24UK£1.09
UK£2.24
+105.4%
16.8%UK£2.75UK£1.60UK£1.067
Dec ’23UK£1.03
UK£2.34
+127.0%
18.8%UK£2.90UK£1.60UK£0.997
Nov ’23UK£1.18
UK£2.64
+124.0%
25.3%UK£3.50UK£1.60UK£1.027

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

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