City of London Investment Group Plc

BATS-CHIXE:CLIGl Stock Report

Market Cap: UK£192.0m

City of London Investment Group Valuation

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

Below Fair Value: CLIGl (£3.95) is trading below our estimate of fair value (£5.19)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CLIGl. This is calculated by dividing CLIGl's market cap by their current earnings.
What is CLIGl's PE Ratio?
PE Ratio14.1x
EarningsUS$17.12m
Market CapUS$240.82m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CLIGl vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20x
GSEO VH Global Sustainable Energy Opportunities
14.3xn/aUK£273.1m
LIO Liontrust Asset Management
20.4x27.4%UK£297.2m
BRK Brooks Macdonald Group
41.9x28.0%UK£270.2m
CGL Castelnau Group
3.3xn/aUK£306.7m
CLIGl City of London Investment Group
14.1x25.4%UK£192.0m

Price-To-Earnings vs Peers: CLIGl is good value based on its Price-To-Earnings Ratio (14.1x) compared to the peer average (20x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PNIX Phoenix Digital Assets
1.2xn/aUS$34.88m
IX. i(x) Net Zero
0.1xn/aUS$8.94m
APQ APQ Global
0.4xn/aUS$5.78m
MAFL Mineral & Financial Investments
2xn/aUS$5.00m
No more companies available in this PE range
No. of Companies19PE01020304050+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CLIGl is expensive based on its Price-To-Earnings Ratio (14.1x) compared to the UK Capital Markets industry average (12.4x).

Price to Earnings Ratio vs Fair Ratio

What is CLIGl'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.

CLIGl PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.1x
Fair PE Ratio16.7x

Price-To-Earnings vs Fair Ratio: CLIGl is good value based on its Price-To-Earnings Ratio (14.1x) compared to the estimated Fair Price-To-Earnings Ratio (16.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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