CMC Markets Plc

LSE:CMCX Stock Report

Market Cap: UK£921.5m

CMC Markets Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: CMCX (£3.31) is trading below our estimate of fair value (£5.54)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CMCX. This is calculated by dividing CMCX's market cap by their current earnings.
What is CMCX's PE Ratio?
PE Ratio19.7x
EarningsUK£46.89m
Market CapUK£921.48m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CMCX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.5x
PLUS Plus500
8.6x-0.09%UK£1.9b
TCAP TP ICAP Group
20.3x21.5%UK£2.0b
ALPH Alpha Group International
10x6.3%UK£937.0m
AJB AJ Bell
23.3x7.4%UK£1.9b
CMCX CMC Markets
19.7x15.0%UK£921.5m

Price-To-Earnings vs Peers: CMCX is expensive based on its Price-To-Earnings Ratio (19.7x) compared to the peer average (15.5x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PNIX Phoenix Digital Assets
1.1xn/aUS$32.43m
IX. i(x) Net Zero
0.1xn/aUS$8.94m
APQ APQ Global
0.4xn/aUS$5.78m
No more companies available in this PE range
CMCX 19.7xIndustry Avg. 12.2xNo. of Companies17PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CMCX is expensive based on its Price-To-Earnings Ratio (19.7x) compared to the UK Capital Markets industry average (12.7x).

Price to Earnings Ratio vs Fair Ratio

What is CMCX'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.

CMCX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.7x
Fair PE Ratio17.6x

Price-To-Earnings vs Fair Ratio: CMCX is expensive based on its Price-To-Earnings Ratio (19.7x) compared to the estimated Fair Price-To-Earnings Ratio (17.6x).

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 CMCX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£3.31
UK£2.47
-25.5%
32.1%UK£3.30UK£1.35n/a6
Nov ’25UK£3.11
UK£2.47
-20.6%
32.1%UK£3.30UK£1.35n/a6
Oct ’25UK£3.05
UK£2.47
-19.0%
32.1%UK£3.30UK£1.35n/a6
Sep ’25UK£3.14
UK£2.47
-21.4%
32.1%UK£3.30UK£1.35n/a6
Aug ’25UK£3.31
UK£2.47
-25.5%
32.1%UK£3.30UK£1.35n/a6
Jul ’25UK£3.40
UK£2.33
-31.3%
31.7%UK£3.30UK£1.35n/a6
Jun ’25UK£2.82
UK£1.79
-36.6%
34.8%UK£2.40UK£0.64n/a6
May ’25UK£2.58
UK£1.79
-30.8%
34.8%UK£2.40UK£0.64n/a6
Apr ’25UK£2.18
UK£1.65
-24.2%
34.9%UK£2.40UK£0.64n/a6
Mar ’25UK£1.67
UK£1.52
-9.2%
30.1%UK£2.00UK£0.64n/a6
Feb ’25UK£1.32
UK£1.17
-11.2%
29.4%UK£1.50UK£0.64n/a6
Jan ’25UK£1.05
UK£1.03
-1.7%
32.8%UK£1.40UK£0.64n/a6
Dec ’24UK£0.91
UK£1.03
+13.5%
32.8%UK£1.40UK£0.64n/a6
Nov ’24UK£0.94
UK£1.05
+11.9%
30.9%UK£1.40UK£0.64UK£3.116
Oct ’24UK£1.05
UK£1.32
+25.0%
37.4%UK£2.24UK£0.75UK£3.056
Sep ’24UK£1.08
UK£1.71
+58.3%
35.5%UK£2.50UK£0.80UK£3.145
Aug ’24UK£1.38
UK£2.11
+52.5%
22.2%UK£2.85UK£1.55UK£3.316
Jul ’24UK£1.54
UK£2.11
+37.2%
22.2%UK£2.85UK£1.55UK£3.406
Jun ’24UK£1.79
UK£2.57
+43.4%
25.7%UK£3.55UK£1.65UK£2.826
May ’24UK£1.84
UK£2.70
+46.8%
19.8%UK£3.55UK£2.00UK£2.586
Apr ’24UK£1.76
UK£2.53
+44.0%
23.6%UK£3.55UK£1.90UK£2.186
Mar ’24UK£2.46
UK£3.01
+22.6%
27.5%UK£4.62UK£2.24UK£1.676
Feb ’24UK£2.35
UK£3.01
+28.1%
27.5%UK£4.62UK£2.24UK£1.326
Jan ’24UK£2.24
UK£3.01
+34.4%
27.5%UK£4.62UK£2.24UK£1.056
Dec ’23UK£2.36
UK£3.01
+27.5%
27.5%UK£4.62UK£2.24UK£0.916
Nov ’23UK£2.49
UK£3.05
+22.6%
26.1%UK£4.62UK£2.24UK£0.946

Analyst Forecast: Target price is lower than the current share price.

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