Rathbones Group Plc

LSE:RAT Stock Report

Market Cap: UK£1.8b

Rathbones Group Valuation

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

Below Fair Value: RAT (£16.86) is trading above our estimate of fair value (£9.99)

Significantly Below Fair Value: RAT is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for RAT. This is calculated by dividing RAT's market cap by their current earnings.
What is RAT's PE Ratio?
PE Ratio27.9x
EarningsUK£63.30m
Market CapUK£1.76b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RAT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average36.6x
QLT Quilter
38.5x36.6%UK£1.9b
JTC JTC
55.4x29.0%UK£1.6b
BPT Bridgepoint Group
42.9x33.2%UK£2.7b
N91 Ninety One Group
9.5x6.1%UK£1.4b
RAT Rathbones Group
27.9x33.5%UK£1.8b

Price-To-Earnings vs Peers: RAT is good value based on its Price-To-Earnings Ratio (27.9x) compared to the peer average (36.6x).

Price to Earnings Ratio vs Industry

How does RAT'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$32.33m
IX. i(x) Net Zero
0.1xn/aUS$8.94m
APQ APQ Global
0.4xn/aUS$5.78m
MAFL Mineral & Financial Investments
1.9xn/aUS$4.92m
No more companies available in this PE range
RAT 27.9xIndustry Avg. 12.0xNo. of Companies17PE01020304050+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RAT is expensive based on its Price-To-Earnings Ratio (27.9x) compared to the UK Capital Markets industry average (12x).

Price to Earnings Ratio vs Fair Ratio

What is RAT'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.

RAT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.9x
Fair PE Ratio23.2x

Price-To-Earnings vs Fair Ratio: RAT is expensive based on its Price-To-Earnings Ratio (27.9x) compared to the estimated Fair Price-To-Earnings Ratio (23.2x).

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 RAT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£16.86
UK£21.22
+25.9%
6.9%UK£23.61UK£18.80n/a11
Nov ’25UK£16.80
UK£21.22
+26.3%
6.9%UK£23.61UK£18.80n/a11
Oct ’25UK£17.74
UK£21.22
+19.6%
7.1%UK£23.61UK£18.40n/a11
Sep ’25UK£18.86
UK£21.22
+12.5%
7.1%UK£23.61UK£18.40n/a11
Aug ’25UK£19.84
UK£20.97
+5.7%
7.3%UK£23.61UK£18.40n/a11
Jul ’25UK£16.78
UK£20.40
+21.6%
10.4%UK£23.22UK£16.40n/a11
Jun ’25UK£17.28
UK£20.40
+18.0%
10.4%UK£23.22UK£16.40n/a11
May ’25UK£16.48
UK£20.17
+22.4%
11.3%UK£22.51UK£15.20n/a11
Apr ’25UK£15.48
UK£20.16
+30.2%
10.9%UK£22.51UK£15.20n/a11
Mar ’25UK£15.80
UK£20.27
+28.3%
11.1%UK£23.60UK£16.50n/a9
Feb ’25UK£16.06
UK£20.54
+27.9%
11.1%UK£23.60UK£16.50n/a10
Jan ’25UK£17.42
UK£20.35
+16.8%
12.1%UK£23.60UK£15.60n/a10
Dec ’24UK£16.08
UK£20.35
+26.5%
12.1%UK£23.60UK£15.60n/a10
Nov ’24UK£15.14
UK£20.89
+38.0%
8.4%UK£23.60UK£17.50UK£16.8010
Oct ’24UK£17.38
UK£21.22
+22.1%
6.4%UK£23.60UK£19.50UK£17.7410
Sep ’24UK£17.36
UK£21.07
+21.3%
5.0%UK£23.00UK£19.50UK£18.869
Aug ’24UK£17.82
UK£20.84
+16.9%
5.8%UK£23.00UK£18.80UK£19.8410
Jul ’24UK£18.60
UK£20.84
+12.0%
5.8%UK£23.00UK£18.80UK£16.7810
Jun ’24UK£20.00
UK£20.99
+4.9%
5.4%UK£23.00UK£18.80UK£17.2810
May ’24UK£19.54
UK£20.99
+7.4%
5.4%UK£23.00UK£18.80UK£16.4810
Apr ’24UK£19.14
UK£21.20
+10.8%
6.0%UK£23.50UK£18.80UK£15.4811
Mar ’24UK£21.10
UK£20.86
-1.1%
9.1%UK£24.00UK£17.20UK£15.8011
Feb ’24UK£21.05
UK£21.01
-0.2%
11.0%UK£25.50UK£17.20UK£16.0611
Jan ’24UK£20.35
UK£20.56
+1.0%
10.5%UK£24.00UK£17.00UK£17.4210
Dec ’23UK£21.15
UK£20.56
-2.8%
10.5%UK£24.00UK£17.00UK£16.0810
Nov ’23UK£18.98
UK£20.41
+7.5%
10.7%UK£24.00UK£17.00UK£15.1410

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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