Investment Evolution Credit plc

OFEX:IEC Stock Report

Market Cap: UK£7.8m

Investment Evolution Credit Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: IEC (£0.13) is trading below our estimate of fair value (£2.98)

Significantly Below Fair Value: IEC is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for IEC. This is calculated by dividing IEC's market cap by their current earnings.
What is IEC's PE Ratio?
PE Ratio4.4x
EarningsUK£1.78m
Market CapUK£7.78m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for IEC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average5.8x
MFX Manx Financial Group
3.1xn/aUK£17.6m
ASAI ASA International Group
4.2x24.9%UK£64.0m
RFX Ramsdens Holdings
9.2xn/aUK£71.8m
HAT H&T Group
6.9x6.7%UK£150.0m
IEC Investment Evolution Credit
4.4xn/aUK£7.8m

Price-To-Earnings vs Peers: IEC is good value based on its Price-To-Earnings Ratio (4.4x) compared to the peer average (5.8x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
IEC 4.4xIndustry Avg. 9.2xNo. of Companies5PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IEC is good value based on its Price-To-Earnings Ratio (4.4x) compared to the European Consumer Finance industry average (8.5x).

Price to Earnings Ratio vs Fair Ratio

What is IEC'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.

IEC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate IEC's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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