Hargreaves Services Plc

AIM:HSP Stock Report

Market Cap: UK£194.5m

Hargreaves Services Valuation

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

Below Fair Value: HSP (£5.9) is trading below our estimate of fair value (£10.58)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for HSP. This is calculated by dividing HSP's market cap by their current earnings.
What is HSP's PE Ratio?
PE Ratio15.8x
EarningsUK£12.28m
Market CapUK£194.47m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HSP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.8x
BISI Bisichi
4.8xn/aUK£12.3m
YCA Yellow Cake
8x-79.9%UK£1.1b
ENQ EnQuest
12.1x-3.3%UK£198.0m
TLW Tullow Oil
26.5x28.4%UK£341.9m
HSP Hargreaves Services
15.8x23.4%UK£194.5m

Price-To-Earnings vs Peers: HSP is expensive based on its Price-To-Earnings Ratio (15.8x) compared to the peer average (12.8x).


Price to Earnings Ratio vs Industry

How does HSP's PE Ratio compare vs other companies in the GB Oil and Gas Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ROSN Rosneft Oil
1.5xn/aUS$21.03b
INDI Indus Gas
1xn/aUS$20.22m
No more companies available in this PE range
HSP 15.8xIndustry Avg. 9.6xNo. of Companies4PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HSP is expensive based on its Price-To-Earnings Ratio (15.8x) compared to the UK Oil and Gas industry average (9.5x).


Price to Earnings Ratio vs Fair Ratio

What is HSP'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.

HSP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.8x
Fair PE Ratio14x

Price-To-Earnings vs Fair Ratio: HSP is expensive based on its Price-To-Earnings Ratio (15.8x) compared to the estimated Fair Price-To-Earnings Ratio (14x).


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 HSP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£5.90
UK£8.04
+36.2%
5.8%UK£8.50UK£7.57n/a2
Dec ’25UK£5.44
UK£8.04
+47.7%
5.8%UK£8.50UK£7.57n/a2
Nov ’25UK£5.70
UK£8.04
+41.0%
5.8%UK£8.50UK£7.57n/a2
Oct ’25UK£5.46
UK£8.04
+47.2%
5.8%UK£8.50UK£7.57n/a2
Sep ’25UK£5.90
UK£8.04
+36.2%
5.8%UK£8.50UK£7.57n/a2
Aug ’25UK£5.92
UK£8.04
+35.7%
5.8%UK£8.50UK£7.57n/a2

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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