Advanced Medical Solutions Group plc

AIM:AMS Stock Report

Market Cap: UK£453.1m

Advanced Medical Solutions Group Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: AMS (£2.08) is trading above our estimate of fair value (£1.35)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for AMS. This is calculated by dividing AMS's market cap by their current earnings.
What is AMS's PE Ratio?
PE Ratio40.7x
EarningsUK£11.13m
Market CapUK£453.14m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AMS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.2x
TSTL Tristel
28.3x17.5%UK£183.6m
CTEC ConvaTec Group
40.3x20.4%UK£4.8b
CNSL Cambridge Nutritional Sciences
42.4xn/aUK£7.4m
NIOX NIOX Group
21.7x15.8%UK£238.8m
AMS Advanced Medical Solutions Group
40.7x20.5%UK£453.1m

Price-To-Earnings vs Peers: AMS is expensive based on its Price-To-Earnings Ratio (40.7x) compared to the peer average (33.2x).


Price to Earnings Ratio vs Industry

How does AMS's PE Ratio compare vs other companies in the European Medical Equipment Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AMS 40.7xIndustry Avg. 29.2xNo. of Companies9PE01632486480+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AMS is expensive based on its Price-To-Earnings Ratio (40.7x) compared to the European Medical Equipment industry average (29.2x).


Price to Earnings Ratio vs Fair Ratio

What is AMS'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.

AMS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio40.7x
Fair PE Ratio30.6x

Price-To-Earnings vs Fair Ratio: AMS is expensive based on its Price-To-Earnings Ratio (40.7x) compared to the estimated Fair Price-To-Earnings Ratio (30.6x).


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 AMS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£2.08
UK£2.63
+26.6%
12.2%UK£3.25UK£2.15n/a8
Dec ’25UK£2.13
UK£2.63
+23.6%
12.2%UK£3.25UK£2.15n/a8
Nov ’25UK£2.33
UK£2.63
+13.0%
12.2%UK£3.25UK£2.15n/a8
Oct ’25UK£2.15
UK£2.65
+23.2%
11.6%UK£3.25UK£2.15n/a9
Sep ’25UK£2.50
UK£2.58
+3.2%
13.6%UK£3.25UK£2.15n/a9
Aug ’25UK£2.44
UK£2.58
+5.8%
13.6%UK£3.25UK£2.15n/a9
Jul ’25UK£2.12
UK£2.58
+21.8%
13.6%UK£3.25UK£2.15n/a9
Jun ’25UK£2.17
UK£2.58
+18.9%
13.0%UK£3.25UK£2.15n/a10
May ’25UK£1.94
UK£2.52
+29.9%
14.2%UK£3.25UK£2.15n/a9
Apr ’25UK£1.96
UK£2.53
+29.2%
14.4%UK£3.25UK£2.10n/a10
Mar ’25UK£2.08
UK£2.55
+23.0%
18.6%UK£3.75UK£2.10n/a10
Feb ’25UK£2.11
UK£2.55
+21.3%
18.6%UK£3.75UK£2.10n/a10
Jan ’25UK£2.08
UK£2.52
+21.6%
19.1%UK£3.75UK£2.10n/a10
Dec ’24UK£2.04
UK£2.52
+23.7%
19.1%UK£3.75UK£2.10UK£2.1310
Nov ’24UK£2.07
UK£2.52
+21.9%
19.1%UK£3.75UK£2.10UK£2.3310
Oct ’24UK£2.01
UK£2.53
+25.9%
18.8%UK£3.75UK£2.10UK£2.1510
Sep ’24UK£2.50
UK£3.05
+22.1%
11.2%UK£3.85UK£2.67UK£2.5010
Aug ’24UK£2.48
UK£3.05
+23.1%
11.2%UK£3.85UK£2.67UK£2.4410
Jul ’24UK£2.26
UK£3.08
+36.3%
10.3%UK£3.85UK£2.70UK£2.1210
Jun ’24UK£2.27
UK£3.09
+36.2%
10.1%UK£3.85UK£2.75UK£2.1710
May ’24UK£2.45
UK£3.11
+27.0%
10.2%UK£3.85UK£2.75UK£1.949
Apr ’24UK£2.23
UK£3.08
+38.2%
10.5%UK£3.85UK£2.75UK£1.9610
Mar ’24UK£2.65
UK£3.12
+17.7%
10.6%UK£3.85UK£2.75UK£2.0810
Feb ’24UK£2.53
UK£3.09
+22.1%
10.9%UK£3.85UK£2.75UK£2.119
Jan ’24UK£2.59
UK£3.09
+19.2%
11.6%UK£3.85UK£2.75UK£2.088
Dec ’23UK£2.72
UK£3.09
+13.5%
11.6%UK£3.85UK£2.75UK£2.048

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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