Funding Circle Holdings plc

LSE:FCH Stock Report

Market Cap: UK£435.4m

Funding Circle Holdings Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: Insufficient data to calculate FCH's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate FCH's fair value for valuation analysis.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for FCH. This is calculated by dividing FCH's market cap by their current revenue.
What is FCH's PS Ratio?
PS Ratio2.3x
SalesUK£187.60m
Market CapUK£435.43m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for FCH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1x
IPF International Personal Finance
0.4x5.3%UK£284.5m
SUS S&U
2.5x19.3%UK£169.5m
VANQ Vanquis Banking Group
0.4x13.5%UK£118.1m
HAT H&T Group
0.6x7.9%UK£147.4m
FCH Funding Circle Holdings
2.3x9.0%UK£435.4m

Price-To-Sales vs Peers: FCH is expensive based on its Price-To-Sales Ratio (2.3x) compared to the peer average (1x).

Price to Sales Ratio vs Industry

How does FCH's PS Ratio compare vs other companies in the European Consumer Finance Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
FCH 2.3xIndustry Avg. 1.5xNo. of Companies7PS01.22.43.64.86+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: FCH is expensive based on its Price-To-Sales Ratio (2.3x) compared to the European Consumer Finance industry average (1.5x).

Price to Sales Ratio vs Fair Ratio

What is FCH'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.

FCH PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.3x
Fair PS Ratio1.7x

Price-To-Sales vs Fair Ratio: FCH is expensive based on its Price-To-Sales Ratio (2.3x) compared to the estimated Fair Price-To-Sales Ratio (1.7x).

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 FCH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.34
UK£1.63
+22.3%
7.6%UK£1.80UK£1.50n/a3
Dec ’25UK£1.42
UK£1.63
+15.4%
7.6%UK£1.80UK£1.50n/a3
Nov ’25UK£1.34
UK£1.63
+22.3%
7.6%UK£1.80UK£1.50n/a3
Oct ’25UK£1.38
UK£1.63
+18.8%
7.6%UK£1.80UK£1.50n/a3
Sep ’25UK£1.06
UK£1.25
+18.5%
29.8%UK£1.70UK£0.70n/a4
Aug ’25UK£1.10
UK£1.35
+22.7%
37.7%UK£2.10UK£0.70n/a4
Jul ’25UK£1.03
UK£1.35
+31.1%
37.7%UK£2.10UK£0.70n/a4
Jun ’25UK£0.93
UK£1.31
+41.4%
57.9%UK£2.50UK£0.60n/a4
May ’25UK£0.66
UK£1.27
+90.8%
68.9%UK£2.50UK£0.60n/a3
Apr ’25UK£0.43
UK£1.25
+187.4%
60.5%UK£2.50UK£0.60n/a4
Mar ’25UK£0.28
UK£1.27
+356.8%
51.8%UK£2.50UK£0.70n/a5
Feb ’25UK£0.30
UK£1.19
+297.2%
52.5%UK£2.50UK£0.70n/a6
Jan ’25UK£0.40
UK£1.19
+197.9%
52.5%UK£2.50UK£0.70n/a6
Dec ’24UK£0.39
UK£1.19
+205.6%
52.5%UK£2.50UK£0.70UK£1.426
Nov ’24UK£0.34
UK£1.19
+250.5%
52.5%UK£2.50UK£0.70UK£1.346
Oct ’24UK£0.39
UK£1.19
+207.1%
52.5%UK£2.50UK£0.70UK£1.386
Sep ’24UK£0.41
UK£1.15
+176.8%
51.8%UK£2.50UK£0.62UK£1.067
Aug ’24UK£0.48
UK£1.15
+139.3%
51.8%UK£2.50UK£0.62UK£1.107
Jul ’24UK£0.56
UK£1.15
+104.4%
51.8%UK£2.50UK£0.62UK£1.037
Jun ’24UK£0.54
UK£1.15
+111.1%
51.8%UK£2.50UK£0.62UK£0.937
May ’24UK£0.55
UK£1.15
+108.8%
51.8%UK£2.50UK£0.62UK£0.667
Apr ’24UK£0.54
UK£1.14
+112.4%
55.8%UK£2.50UK£0.66UK£0.436
Mar ’24UK£0.60
UK£1.38
+130.0%
64.8%UK£3.30UK£0.66UK£0.286
Feb ’24UK£0.62
UK£1.38
+122.6%
64.8%UK£3.30UK£0.66UK£0.306
Jan ’24UK£0.55
UK£1.47
+166.7%
71.7%UK£3.75UK£0.66UK£0.406
Dec ’23UK£0.55
UK£1.47
+167.2%
71.7%UK£3.75UK£0.66UK£0.396

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/25 12:53
End of Day Share Price 2024/12/24 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Funding Circle Holdings plc is covered by 14 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
James GoodmanBarclays
Orson RoutBarclays
Alexander BowersBerenberg