SSP Group Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: SSPG (£1.59) is trading below our estimate of fair value (£2.29)

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


Key Valuation Metric

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

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

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

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SSPG 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
0.6x3.4%UK£1.4b
DOM Domino's Pizza Group
2x6.0%UK£1.3b
JDW J D Wetherspoon
0.4x4.1%UK£732.5m
GRG Greggs
1.4x9.2%UK£2.8b
SSPG SSP Group
0.4x6.2%UK£1.3b

Price-To-Sales vs Peers: SSPG 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 SSPG's PS Ratio compare vs other companies in the GB Hospitality Industry?

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
EVOK Evoke
0.1x5.9%US$307.57m
TRC Revel Collective
0.06x-3.1%US$10.79m
NGHT Nightcap
0.1xn/aUS$8.62m
COM Comptoir Group
0.1xn/aUS$5.61m
SSPG 0.4xIndustry Avg. 1.1xNo. of Companies7PS00.61.21.82.43+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SSPG 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 SSPG'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.

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

Price-To-Sales vs Fair Ratio: SSPG 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 SSPG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.59
UK£2.54
+59.6%
22.8%UK£3.50UK£1.60n/a15
Nov ’25UK£1.62
UK£2.64
+62.8%
22.7%UK£3.50UK£1.60n/a15
Oct ’25UK£1.57
UK£2.70
+71.8%
21.6%UK£3.50UK£1.60n/a16
Sep ’25UK£1.70
UK£2.78
+63.6%
19.8%UK£3.50UK£1.60n/a16
Aug ’25UK£1.74
UK£2.81
+61.4%
19.3%UK£3.50UK£1.60n/a16
Jul ’25UK£1.45
UK£2.79
+92.4%
19.1%UK£3.50UK£1.60n/a16
Jun ’25UK£1.66
UK£2.92
+75.3%
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
+38.4%
9.2%UK£3.50UK£2.55n/a16
Mar ’25UK£2.20
UK£3.03
+38.2%
9.2%UK£3.50UK£2.55n/a16
Feb ’25UK£2.24
UK£3.04
+35.7%
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£2.12
UK£3.06
+44.3%
10.2%UK£3.60UK£2.45n/a16
Nov ’24UK£1.85
UK£3.07
+65.9%
10.5%UK£3.60UK£2.45UK£1.6216
Oct ’24UK£2.03
UK£3.08
+52.3%
10.9%UK£3.60UK£2.45UK£1.5717
Sep ’24UK£2.33
UK£3.21
+37.8%
11.3%UK£4.00UK£2.60UK£1.7018
Aug ’24UK£2.43
UK£3.21
+32.3%
11.3%UK£4.00UK£2.60UK£1.7418
Jul ’24UK£2.51
UK£3.21
+28.1%
11.3%UK£4.00UK£2.60UK£1.4518
Jun ’24UK£2.69
UK£3.16
+17.6%
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
+26.8%
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£2.2019
Feb ’24UK£2.66
UK£3.09
+16.2%
12.3%UK£4.00UK£2.40UK£2.2419
Jan ’24UK£2.29
UK£3.06
+33.8%
13.3%UK£4.00UK£2.45UK£2.3518
Dec ’23UK£2.10
UK£2.99
+42.3%
11.0%UK£3.50UK£2.45UK£2.1217
Nov ’23UK£2.08
UK£3.03
+45.6%
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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