Gresham House Plc

AIM:GHE Stock Report

Market Cap: UK£444.6m

Gresham House Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: GHE (£11) is trading above our estimate of fair value (£2.66)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for GHE. This is calculated by dividing GHE's market cap by their current earnings.
What is GHE's PE Ratio?
PE Ratio31.5x
EarningsUK£14.13m
Market CapUK£444.60m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for GHE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.7x
POLN Pollen Street Group
9.2x3.1%UK£427.0m
FSG Foresight Group Holdings
19.4x29.0%UK£513.1m
IPX Impax Asset Management Group
10.7x2.5%UK£433.8m
TAM Tatton Asset Management
27.6x11.9%UK£425.0m
GHE Gresham House
31.5x16.4%UK£444.6m

Price-To-Earnings vs Peers: GHE is expensive based on its Price-To-Earnings Ratio (31.5x) compared to the peer average (22.8x).

Price to Earnings Ratio vs Industry

How does GHE's PE Ratio compare vs other companies in the GB Capital Markets Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CBA CEIBA Investments
2.8xn/aUS$42.52m
PNIX Phoenix Digital Assets
1.1xn/aUS$32.25m
IX. i(x) Net Zero
0.1xn/aUS$8.94m
APQ APQ Global
0.4xn/aUS$5.78m
GHE 31.5xIndustry Avg. 12.7xNo. of Companies15PE01224364860+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GHE is expensive based on its Price-To-Earnings Ratio (31.5x) compared to the UK Capital Markets industry average (15.6x).

Price to Earnings Ratio vs Fair Ratio

What is GHE'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.

GHE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.5x
Fair PE Ratio13.8x

Price-To-Earnings vs Fair Ratio: GHE is expensive based on its Price-To-Earnings Ratio (31.5x) compared to the estimated Fair Price-To-Earnings Ratio (13.8x).

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 GHE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
UK£11.62
0%
6.9%UK£12.75UK£11.05n/a3
Nov ’25n/a
UK£11.62
0%
6.9%UK£12.75UK£11.05n/a3
Oct ’25n/a
UK£11.62
0%
6.9%UK£12.75UK£11.05n/a3
Sep ’25n/a
UK£11.62
0%
6.9%UK£12.75UK£11.05n/a3
Aug ’25n/a
UK£11.62
0%
6.9%UK£12.75UK£11.05n/a3
Jul ’25n/a
UK£11.62
0%
6.9%UK£12.75UK£11.05n/a3
Jun ’25n/a
UK£11.62
0%
6.9%UK£12.75UK£11.05n/a3
May ’25n/a
UK£11.62
0%
6.9%UK£12.75UK£11.05n/a3
Apr ’25n/a
UK£11.62
0%
6.9%UK£12.75UK£11.05n/a3
Mar ’25n/a
UK£11.62
0%
6.9%UK£12.75UK£11.05n/a3
Feb ’25n/a
UK£11.62
0%
6.9%UK£12.75UK£11.05n/a3
Jan ’25n/a
UK£11.62
0%
6.9%UK£12.75UK£11.05n/a3
Dec ’24UK£10.95
UK£11.62
+6.1%
6.9%UK£12.75UK£11.05n/a3
Nov ’24UK£10.80
UK£11.62
+7.6%
6.9%UK£12.75UK£11.05n/a3
Oct ’24UK£10.65
UK£12.24
+14.9%
8.5%UK£14.00UK£11.05n/a5
Sep ’24UK£10.60
UK£12.24
+15.5%
8.5%UK£14.00UK£11.05n/a5
Aug ’24UK£10.60
UK£11.98
+13.0%
9.3%UK£14.00UK£10.67n/a6
Jul ’24UK£6.80
UK£11.99
+76.3%
9.3%UK£14.00UK£10.67n/a6
Jun ’24UK£7.50
UK£11.99
+59.8%
9.3%UK£14.00UK£10.67n/a6
May ’24UK£8.07
UK£12.02
+48.9%
9.1%UK£14.00UK£10.67n/a6
Apr ’24UK£7.70
UK£12.02
+56.1%
9.1%UK£14.00UK£10.67n/a6
Mar ’24UK£7.75
UK£12.07
+55.7%
10.4%UK£14.47UK£10.67n/a6
Feb ’24UK£7.59
UK£12.07
+59.0%
10.4%UK£14.47UK£10.67n/a6
Jan ’24UK£7.55
UK£12.52
+65.8%
9.3%UK£14.47UK£11.10n/a6
Dec ’23UK£7.30
UK£12.52
+71.5%
9.3%UK£14.47UK£11.10UK£10.956
Nov ’23UK£7.30
UK£12.52
+71.5%
9.3%UK£14.47UK£11.10UK£10.806

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

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