W.A.G payment solutions plc

LSE:WPS Stock Report

Market Cap: UK£565.4m

W.A.G payment solutions Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: WPS (£0.82) is trading below our estimate of fair value (£0.91)

Significantly Below Fair Value: WPS is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for WPS. This is calculated by dividing WPS's market cap by their current revenue.
What is WPS's PS Ratio?
PS Ratio0.3x
Sales€2.22b
Market Cap€679.35m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for WPS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.7x
BOKU Boku
7.7x12.0%UK£555.8m
PAY PayPoint
2x-3.8%UK£594.6m
FNX Fonix
2.9x8.0%UK£222.7m
CABP CAB Payments Holdings
2.1x19.8%UK£183.0m
WPS W.A.G payment solutions
0.3x13.4%UK£565.4m

Price-To-Sales vs Peers: WPS is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (3.7x).

Price to Sales Ratio vs Industry

How does WPS's PS Ratio compare vs other companies in the GB Diversified Financial Industry?

2 CompaniesPrice / SalesEstimated GrowthMarket Cap
NBS Nationwide Building Society
0.3xn/aUS$1.52b
LEND Sancus Lending Group
0.3x15.1%US$3.62m
No more companies available in this PS range
WPS 0.3xIndustry Avg. 2.0xNo. of Companies7PS01.22.43.64.86+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: WPS is good value based on its Price-To-Sales Ratio (0.3x) compared to the UK Diversified Financial industry average (2x).

Price to Sales Ratio vs Fair Ratio

What is WPS'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.

WPS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ratio1.4x

Price-To-Sales vs Fair Ratio: WPS is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (1.4x).

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 WPS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.85
UK£1.19
+40.2%
13.0%UK£1.36UK£0.84n/a9
Nov ’25UK£0.81
UK£1.19
+47.1%
13.0%UK£1.36UK£0.84n/a9
Oct ’25UK£0.80
UK£1.18
+47.1%
12.3%UK£1.33UK£0.84n/a9
Sep ’25UK£0.68
UK£1.22
+79.7%
11.4%UK£1.37UK£0.92n/a9
Aug ’25UK£0.68
UK£1.21
+78.3%
11.4%UK£1.36UK£0.91n/a9
Jul ’25UK£0.63
UK£1.22
+93.0%
11.9%UK£1.41UK£0.91n/a9
Jun ’25UK£0.70
UK£1.23
+75.9%
12.6%UK£1.39UK£0.90n/a9
May ’25UK£0.67
UK£1.25
+87.2%
12.2%UK£1.39UK£0.91n/a9
Apr ’25UK£0.67
UK£1.26
+88.7%
12.7%UK£1.45UK£0.91n/a9
Mar ’25UK£0.78
UK£1.29
+65.9%
8.7%UK£1.45UK£1.11n/a9
Feb ’25UK£0.85
UK£1.29
+52.2%
9.1%UK£1.48UK£1.10n/a9
Jan ’25UK£0.90
UK£1.34
+48.6%
8.4%UK£1.48UK£1.18n/a7
Dec ’24UK£0.90
UK£1.36
+51.3%
7.7%UK£1.51UK£1.20n/a7
Nov ’24UK£0.91
UK£1.36
+48.9%
7.7%UK£1.51UK£1.20UK£0.817
Oct ’24UK£0.92
UK£1.40
+52.7%
13.1%UK£1.80UK£1.21UK£0.807
Sep ’24UK£0.90
UK£1.41
+56.1%
12.0%UK£1.78UK£1.19UK£0.687
Aug ’24UK£0.96
UK£1.40
+45.9%
12.8%UK£1.78UK£1.14UK£0.687
Jul ’24UK£0.88
UK£1.42
+60.3%
13.1%UK£1.80UK£1.11UK£0.637
Jun ’24UK£0.97
UK£1.44
+48.9%
14.1%UK£1.82UK£1.13UK£0.706
May ’24UK£0.97
UK£1.44
+48.6%
14.1%UK£1.82UK£1.13UK£0.676
Apr ’24UK£0.94
UK£1.46
+55.6%
15.4%UK£1.84UK£1.14UK£0.675
Mar ’24UK£0.80
UK£1.46
+82.0%
15.2%UK£1.82UK£1.13UK£0.785
Feb ’24UK£0.79
UK£1.46
+83.3%
15.2%UK£1.82UK£1.13UK£0.855
Jan ’24UK£0.79
UK£1.45
+83.0%
16.0%UK£1.79UK£1.13UK£0.904
Dec ’23UK£0.80
UK£1.50
+87.1%
16.1%UK£1.79UK£1.13UK£0.904
Nov ’23UK£0.82
UK£1.48
+80.8%
15.9%UK£1.81UK£1.14UK£0.914

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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