Vanquis Banking Group plc

BATS-CHIXE:VANQL Stock Report

Market Cap: UK£114.8m

Vanquis Banking Group Valuation

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

Below Fair Value: VANQL (£0.45) is trading below our estimate of fair value (£2.36)

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

Key Valuation Metric

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

Key metric: As VANQL is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for VANQL. This is calculated by dividing VANQL's market cap by their current revenue.
What is VANQL's PS Ratio?
PS Ratio0.4x
SalesUK£319.90m
Market CapUK£114.83m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for VANQL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.1x
SUS S&U
2.6x20.5%UK£170.1m
ASAI ASA International Group
0.5x10.2%UK£63.8m
HAT H&T Group
0.7x7.9%UK£153.5m
RFX Ramsdens Holdings
0.8x5.5%UK£71.8m
VANQL Vanquis Banking Group
0.3x13.5%UK£103.6m

Price-To-Sales vs Peers: VANQL 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 VANQL's PS Ratio compare vs other companies in the European Consumer Finance Industry?

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.n/a9.8%
VANQL Vanquis Banking Group
 0.3x13.5%US$130.07m
No. of Companies6PS01.63.24.86.48+
7 CompaniesEstimated GrowthMarket Cap
Industry Avg.n/a46.6%
VANQL Vanquis Banking Group
 0.3x82.7%US$130.07m
No more companies

Price-To-Sales vs Industry: VANQL is good value based on its Price-To-Sales Ratio (0.4x) compared to the European Consumer Finance industry average (1.6x).

Price to Sales Ratio vs Fair Ratio

What is VANQL'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.

VANQL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ratio0.9x

Price-To-Sales vs Fair Ratio: VANQL is good value based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).

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 VANQL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.45
UK£0.85
+91.6%
19.5%UK£1.10UK£0.66n/a4
Nov ’25UK£0.44
UK£0.85
+93.8%
19.5%UK£1.10UK£0.66n/a4
Oct ’25UK£0.58
UK£0.92
+57.9%
22.1%UK£1.20UK£0.66n/a5
Sep ’25UK£0.57
UK£0.94
+65.6%
21.8%UK£1.20UK£0.66n/a5
Aug ’25UK£0.57
UK£0.96
+69.7%
23.3%UK£1.20UK£0.66n/a5
Jul ’25UK£0.49
UK£0.94
+91.3%
22.1%UK£1.20UK£0.66n/a6
Jun ’25UK£0.55
UK£0.88
+60.9%
28.2%UK£1.20UK£0.50n/a7
May ’25UK£0.47
UK£1.10
+132.5%
29.5%UK£1.63UK£0.50n/a8
Apr ’25UK£0.53
UK£1.22
+128.9%
30.6%UK£1.80UK£0.60n/a8
Mar ’25UK£1.23
UK£1.90
+54.6%
55.7%UK£4.38UK£1.03n/a7
Feb ’25UK£1.18
UK£1.90
+60.8%
55.7%UK£4.38UK£1.03n/a7
Jan ’25UK£1.30
UK£1.81
+38.9%
49.5%UK£4.06UK£1.03n/a8
Dec ’24UK£1.11
UK£1.81
+62.4%
49.5%UK£4.06UK£1.03n/a8
Nov ’24UK£1.16
UK£2.42
+108.9%
47.7%UK£4.20UK£1.03UK£0.448
Oct ’24UK£1.27
UK£2.95
+133.0%
40.0%UK£4.50UK£1.15UK£0.588
Sep ’24UK£1.06
UK£2.95
+177.8%
40.0%UK£4.50UK£1.15UK£0.578
Aug ’24UK£1.28
UK£3.19
+150.2%
29.2%UK£4.50UK£1.90UK£0.577
Jul ’24UK£1.91
UK£3.69
+93.5%
37.7%UK£6.58UK£1.90UK£0.498
Jun ’24UK£2.18
UK£3.69
+69.2%
37.5%UK£6.55UK£1.90UK£0.558
May ’24UK£2.25
UK£3.69
+64.3%
37.5%UK£6.55UK£1.90UK£0.478
Apr ’24UK£2.38
UK£3.65
+53.1%
37.2%UK£6.55UK£1.45UK£0.538
Mar ’24UK£2.24
UK£3.58
+60.0%
38.0%UK£6.55UK£1.45UK£1.238
Feb ’24UK£2.38
UK£3.69
+55.0%
36.4%UK£6.55UK£1.45UK£1.188
Jan ’24UK£1.94
UK£3.69
+90.6%
36.3%UK£6.55UK£1.45UK£1.308
Dec ’23UK£1.96
UK£3.69
+88.4%
36.3%UK£6.55UK£1.45UK£1.118
Nov ’23UK£1.72
UK£3.58
+108.6%
32.0%UK£6.04UK£1.45UK£1.169

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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