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

  • PM 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 (£15.8) is trading above our estimate of fair value (£8.61)

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?

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/EBITDA9.3x
PEG Ratio0.7x

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 Average54.3x
JTC JTC
49.9x25.7%UK£1.3b
N91 Ninety One Group
9.8x-2.5%UK£1.6b
PHLL Petershill Partners
134x50.3%UK£1.9b
BBGI BBGI Global Infrastructure
23.6xn/aUK£886.4m
RAT Rathbones Group
31.3x44.9%UK£1.4b

Price-To-Earnings vs Peers: RAT is good value based on its Price-To-Earnings Ratio (31.3x) compared to the peer average (54.3x).


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/a15.8%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.8%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: RAT is expensive based on its Price-To-Earnings Ratio (31.3x) compared to the UK Capital Markets industry average (14.4x).


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 Ratio31.3x
Fair PE Ratio28.5x

PM vs Fair Ratio: RAT is expensive based on its Price-To-Earnings Ratio (31.3x) compared to the estimated Fair Price-To-Earnings Ratio (28.5x).


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£15.80
UK£20.54
+30.0%
11.1%UK£23.60UK£16.50n/a10
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£17.50n/a10
Oct ’24UK£17.38
UK£21.22
+22.1%
6.4%UK£23.60UK£19.50n/a10
Sep ’24UK£17.36
UK£21.07
+21.3%
5.0%UK£23.00UK£19.50n/a9
Aug ’24UK£17.82
UK£20.84
+16.9%
5.8%UK£23.00UK£18.80n/a10
Jul ’24UK£18.60
UK£20.84
+12.0%
5.8%UK£23.00UK£18.80n/a10
Jun ’24UK£20.00
UK£20.99
+4.9%
5.4%UK£23.00UK£18.80n/a10
May ’24UK£19.54
UK£20.99
+7.4%
5.4%UK£23.00UK£18.80n/a10
Apr ’24UK£19.14
UK£21.20
+10.8%
6.0%UK£23.50UK£18.80n/a11
Mar ’24UK£21.10
UK£20.86
-1.1%
9.1%UK£24.00UK£17.20n/a11
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
Oct ’23UK£16.40
UK£20.81
+26.9%
8.6%UK£24.00UK£18.00UK£17.3811
Sep ’23UK£16.78
UK£20.81
+24.0%
8.6%UK£24.00UK£18.00UK£17.3611
Aug ’23UK£18.66
UK£21.68
+16.2%
11.5%UK£25.15UK£18.00UK£17.8211
Jul ’23UK£19.10
UK£23.53
+23.2%
6.4%UK£25.50UK£20.55UK£18.6010
Jun ’23UK£20.60
UK£23.61
+14.6%
6.3%UK£25.50UK£21.00UK£20.009
May ’23UK£21.00
UK£23.13
+10.2%
8.4%UK£25.50UK£19.00UK£19.5410
Apr ’23UK£20.45
UK£23.13
+13.1%
8.3%UK£25.50UK£19.00UK£19.1410
Mar ’23UK£16.02
UK£23.31
+45.5%
6.4%UK£25.50UK£21.70UK£21.109
Feb ’23UK£18.86
UK£23.94
+26.9%
7.1%UK£26.00UK£21.70UK£21.059

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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