Polar Capital Holdings Plc

AIM:POLR Stock Report

Market Cap: UK£493.5m

Polar Capital Holdings Valuation

Is POLR 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-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 POLR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: POLR (£5.34) is trading below our estimate of fair value (£7.04)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for POLR. This is calculated by dividing POLR's market cap by their current earnings.
What is POLR's PE Ratio?
PE Ratio12.6x
EarningsUK£40.79m
Market CapUK£493.49m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for POLR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.9x
PINT Pantheon Infrastructure
5.4xn/aUK£418.3m
CGEO Georgia Capital
12.1xn/aUK£406.9m
IPX Impax Asset Management Group
10.7x2.5%UK£433.8m
TAM Tatton Asset Management
27.6x11.9%UK£423.8m
POLR Polar Capital Holdings
12.6x10.3%UK£514.7m

Price-To-Earnings vs Peers: POLR is good value based on its Price-To-Earnings Ratio (12.6x) compared to the peer average (13.9x).

Price to Earnings Ratio vs Industry

How does POLR'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
POLR 12.6xIndustry Avg. 12.1xNo. of Companies15PE01224364860+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: POLR is expensive based on its Price-To-Earnings Ratio (12.6x) compared to the UK Capital Markets industry average (12.1x).

Price to Earnings Ratio vs Fair Ratio

What is POLR'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.

POLR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.6x
Fair PE Ratio14.6x

Price-To-Earnings vs Fair Ratio: POLR is good value based on its Price-To-Earnings Ratio (12.6x) compared to the estimated Fair Price-To-Earnings Ratio (14.6x).

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 POLR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£5.34
UK£6.11
+14.4%
7.9%UK£6.65UK£5.50n/a6
Nov ’25UK£4.90
UK£6.11
+24.8%
7.9%UK£6.65UK£5.50n/a6
Oct ’25UK£5.27
UK£6.23
+18.3%
6.2%UK£6.65UK£5.70n/a6
Sep ’25UK£5.34
UK£6.13
+14.9%
9.0%UK£6.65UK£5.10n/a6
Aug ’25UK£5.87
UK£6.34
+8.0%
4.8%UK£6.65UK£5.75n/a6
Jul ’25UK£5.79
UK£6.05
+4.5%
8.0%UK£6.65UK£5.30n/a6
Jun ’25UK£5.49
UK£5.74
+4.6%
11.0%UK£6.65UK£5.00n/a6
May ’25UK£5.41
UK£5.77
+6.6%
10.5%UK£6.65UK£5.15n/a6
Apr ’25UK£4.56
UK£5.17
+13.4%
10.3%UK£6.00UK£4.34n/a6
Mar ’25UK£4.46
UK£5.17
+15.9%
10.3%UK£6.00UK£4.34n/a6
Feb ’25UK£4.48
UK£5.12
+14.4%
11.0%UK£6.00UK£4.34n/a6
Jan ’25UK£4.66
UK£5.07
+8.7%
13.0%UK£5.75UK£4.10n/a6
Dec ’24UK£4.45
UK£5.07
+14.0%
13.0%UK£5.75UK£4.10n/a6
Nov ’24UK£4.11
UK£5.18
+26.0%
13.5%UK£5.75UK£3.80UK£4.905
Oct ’24UK£4.65
UK£5.70
+22.6%
11.8%UK£6.25UK£4.40UK£5.275
Sep ’24UK£4.79
UK£5.70
+19.0%
11.8%UK£6.25UK£4.40UK£5.345
Aug ’24UK£4.83
UK£5.72
+18.5%
11.0%UK£6.25UK£4.50UK£5.875
Jul ’24UK£5.16
UK£5.74
+11.2%
9.4%UK£6.25UK£4.75UK£5.795
Jun ’24UK£5.02
UK£5.69
+13.3%
11.1%UK£6.25UK£4.50UK£5.495
May ’24UK£4.89
UK£5.69
+16.4%
11.1%UK£6.25UK£4.50UK£5.415
Apr ’24UK£4.53
UK£5.70
+26.0%
8.5%UK£6.10UK£4.80UK£4.565
Mar ’24UK£5.24
UK£5.70
+8.8%
8.5%UK£6.10UK£4.80UK£4.465
Feb ’24UK£5.25
UK£5.61
+6.9%
11.6%UK£6.10UK£4.35UK£4.485
Jan ’24UK£4.77
UK£5.69
+19.2%
9.1%UK£6.10UK£4.70UK£4.665
Dec ’23UK£4.95
UK£5.65
+14.1%
10.5%UK£6.10UK£4.50UK£4.455
Nov ’23UK£4.32
UK£5.65
+30.7%
10.5%UK£6.10UK£4.50UK£4.115

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

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