We’ve recently updated our valuation analysis.

Rathbones Group Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

RAT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.7x
Enterprise Value/EBITDA11x
PEG Ratio1.9x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average35.9x
JTC JTC
103.3x25.9%UK£1.1b
BBGI BBGI Global Infrastructure
9.1xn/aUK£1.1b
N91 Ninety One Group
9.1x-3.3%UK£1.7b
BPT Bridgepoint Group
22x21.9%UK£1.6b
RAT Rathbones Group
19.5x10.2%UK£1.2b

Price-To-Earnings vs Peers: RAT is good value based on its Price-To-Earnings Ratio (19.5x) compared to the peer average (35.9x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.2%
n/an/an/a

Price-To-Earnings vs Industry: RAT is expensive based on its Price-To-Earnings Ratio (19.5x) compared to the UK Capital Markets industry average (13.6x)


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 Ratio19.5x
Fair PE Ratio15.1x

Price-To-Earnings vs Fair Ratio: RAT is expensive based on its Price-To-Earnings Ratio (19.5x) compared to the estimated Fair Price-To-Earnings Ratio (15.1x).


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 (£20.65) is trading above our estimate of fair value (£8.51)

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


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£20.65
UK£20.56
-0.4%
10.5%UK£24.00UK£17.00n/a10
Nov ’23UK£18.98
UK£20.41
+7.5%
10.7%UK£24.00UK£17.00n/a10
Oct ’23UK£16.40
UK£20.81
+26.9%
8.6%UK£24.00UK£18.00n/a11
Sep ’23UK£16.78
UK£20.81
+24.0%
8.6%UK£24.00UK£18.00n/a11
Aug ’23UK£18.66
UK£21.68
+16.2%
11.5%UK£25.15UK£18.00n/a11
Jul ’23UK£19.10
UK£23.53
+23.2%
6.4%UK£25.50UK£20.55n/a10
Jun ’23UK£20.60
UK£23.61
+14.6%
6.3%UK£25.50UK£21.00n/a9
May ’23UK£21.00
UK£23.13
+10.2%
8.4%UK£25.50UK£19.00n/a10
Apr ’23UK£20.45
UK£23.13
+13.1%
8.3%UK£25.50UK£19.00n/a10
Mar ’23UK£16.02
UK£23.31
+45.5%
6.4%UK£25.50UK£21.70n/a9
Feb ’23UK£18.86
UK£23.94
+26.9%
7.1%UK£26.00UK£21.70n/a9
Jan ’23UK£19.84
UK£23.83
+20.1%
7.8%UK£26.00UK£20.83n/a9
Dec ’22UK£19.00
UK£23.83
+25.4%
7.8%UK£26.00UK£20.83UK£21.159
Nov ’22UK£19.90
UK£23.46
+17.9%
8.0%UK£26.00UK£20.83UK£18.989
Oct ’22UK£20.00
UK£23.51
+17.6%
8.2%UK£25.95UK£20.75UK£16.407
Sep ’22UK£20.50
UK£23.27
+13.5%
8.5%UK£25.95UK£20.75UK£16.786
Aug ’22UK£18.80
UK£22.77
+21.1%
8.2%UK£25.95UK£20.75UK£18.666
Jul ’22UK£18.32
UK£21.73
+18.6%
8.1%UK£25.95UK£19.85UK£19.108
Jun ’22UK£18.20
UK£20.89
+14.8%
10.6%UK£25.95UK£17.35UK£20.609
May ’22UK£16.92
UK£20.37
+20.4%
11.2%UK£25.95UK£17.35UK£21.009
Apr ’22UK£17.70
UK£20.37
+15.1%
11.2%UK£25.95UK£17.35UK£20.459
Mar ’22UK£15.50
UK£19.99
+29.0%
12.2%UK£25.95UK£17.35UK£16.029
Feb ’22UK£15.50
UK£19.99
+29.0%
12.2%UK£25.95UK£17.35UK£18.869
Jan ’22UK£15.40
UK£18.84
+22.3%
14.1%UK£25.95UK£16.70UK£19.849
Dec ’21UK£15.54
UK£18.84
+21.2%
14.1%UK£25.95UK£16.70UK£19.009

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


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