Hostelworld Group plc

LSE:HSW Stock Report

Market Cap: UK£170.6m

Hostelworld Group Valuation

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

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: HSW (£1.35) is trading below our estimate of fair value (£3.14)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for HSW. This is calculated by dividing HSW's market cap by their current earnings.
What is HSW's PE Ratio?
PE Ratio13.2x
Earnings€15.16m
Market Cap€205.02m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HSW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average58.3x
OTB On the Beach Group
17x22.0%UK£265.5m
PPH PPHE Hotel Group
22.5x31.6%UK£484.8m
SSTY Safestay
160.8xn/aUK£17.2m
TRN Trainline
32.8x15.1%UK£1.8b
HSW Hostelworld Group
13.2x7.0%UK£170.6m

Price-To-Earnings vs Peers: HSW is good value based on its Price-To-Earnings Ratio (13.2x) compared to the peer average (58.3x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
TAST Tasty
0.4x-75.9%US$2.75m
No more companies available in this PE range
HSW 13.2xIndustry Avg. 20.4xNo. of Companies5PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HSW is good value based on its Price-To-Earnings Ratio (13.2x) compared to the UK Hospitality industry average (20.4x).

Price to Earnings Ratio vs Fair Ratio

What is HSW'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.

HSW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.2x
Fair PE Ratio15.4x

Price-To-Earnings vs Fair Ratio: HSW is good value based on its Price-To-Earnings Ratio (13.2x) compared to the estimated Fair Price-To-Earnings Ratio (15.4x).

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 HSW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.35
UK£2.00
+48.9%
14.9%UK£2.46UK£1.49n/a6
Nov ’25UK£1.26
UK£2.00
+58.6%
14.9%UK£2.47UK£1.50n/a6
Oct ’25UK£1.31
UK£2.00
+52.5%
14.2%UK£2.47UK£1.47n/a7
Sep ’25UK£1.45
UK£2.02
+39.6%
14.1%UK£2.51UK£1.50n/a7
Aug ’25UK£1.40
UK£2.00
+43.1%
13.8%UK£2.47UK£1.50n/a7
Jul ’25UK£1.59
UK£1.98
+24.8%
13.6%UK£2.44UK£1.48n/a7
Jun ’25UK£1.53
UK£1.97
+29.4%
14.0%UK£2.48UK£1.51n/a8
May ’25UK£1.60
UK£1.97
+23.1%
14.1%UK£2.47UK£1.50n/a8
Apr ’25UK£1.56
UK£1.97
+26.2%
14.1%UK£2.47UK£1.50n/a8
Mar ’25UK£1.59
UK£1.93
+21.7%
14.9%UK£2.47UK£1.49n/a8
Feb ’25UK£1.47
UK£1.84
+25.7%
11.7%UK£2.13UK£1.48n/a7
Jan ’25UK£1.37
UK£1.85
+35.3%
11.9%UK£2.13UK£1.49n/a7
Dec ’24UK£1.26
UK£1.98
+57.0%
21.0%UK£2.85UK£1.48n/a7
Nov ’24UK£1.09
UK£2.01
+84.2%
21.5%UK£2.90UK£1.51UK£1.267
Oct ’24UK£1.27
UK£1.98
+55.7%
21.3%UK£2.84UK£1.48UK£1.317
Sep ’24UK£1.28
UK£1.99
+56.3%
21.3%UK£2.87UK£1.49UK£1.457
Aug ’24UK£1.32
UK£2.04
+55.4%
22.1%UK£2.89UK£1.51UK£1.406
Jul ’24UK£1.27
UK£2.02
+59.3%
21.7%UK£2.83UK£1.48UK£1.596
Jun ’24UK£1.24
UK£2.46
+99.3%
31.9%UK£3.76UK£1.50UK£1.535
May ’24UK£1.25
UK£2.55
+105.0%
28.3%UK£3.79UK£2.00UK£1.604
Apr ’24UK£1.32
UK£2.55
+94.0%
28.3%UK£3.79UK£2.00UK£1.564
Mar ’24UK£1.35
UK£1.97
+45.9%
14.9%UK£2.26UK£1.49UK£1.594
Feb ’24UK£1.31
UK£1.84
+40.4%
19.5%UK£2.26UK£1.48UK£1.474
Jan ’24UK£1.15
UK£1.71
+48.7%
17.9%UK£2.15UK£1.49UK£1.373
Dec ’23UK£1.01
UK£1.58
+56.1%
27.3%UK£2.15UK£1.10UK£1.263
Nov ’23UK£0.90
UK£1.57
+74.4%
27.1%UK£2.12UK£1.09UK£1.093

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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