ConvaTec Group PLC

LSE:CTEC Stock Report

Market Cap: UK£4.8b

ConvaTec Group Valuation

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

Below Fair Value: CTEC (£2.36) is trading below our estimate of fair value (£4.88)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CTEC. This is calculated by dividing CTEC's market cap by their current earnings.
What is CTEC's PE Ratio?
PE Ratio39.5x
EarningsUS$153.20m
Market CapUS$6.05b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CTEC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average32.6x
AMS Advanced Medical Solutions Group
41x23.0%UK£456.3m
TSTL Tristel
32.3x17.5%UK£209.8m
SN. Smith & Nephew
35.4x22.5%UK£8.6b
MDC Mediclinic International
21.9x10.7%UK£3.7b
CTEC ConvaTec Group
39.5x20.5%UK£4.8b

Price-To-Earnings vs Peers: CTEC is expensive based on its Price-To-Earnings Ratio (39.5x) compared to the peer average (36.2x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CTEC 39.5xIndustry Avg. 29.5xNo. of Companies7PE01632486480+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CTEC is expensive based on its Price-To-Earnings Ratio (39.5x) compared to the European Medical Equipment industry average (29.5x).

Price to Earnings Ratio vs Fair Ratio

What is CTEC'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.

CTEC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio39.5x
Fair PE Ratio39.6x

Price-To-Earnings vs Fair Ratio: CTEC is good value based on its Price-To-Earnings Ratio (39.5x) compared to the estimated Fair Price-To-Earnings Ratio (39.6x).

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 CTEC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£2.36
UK£3.01
+27.7%
10.6%UK£3.54UK£2.25n/a19
Nov ’25UK£2.15
UK£2.92
+35.7%
10.5%UK£3.44UK£2.18n/a19
Oct ’25UK£2.26
UK£2.82
+24.9%
10.4%UK£3.31UK£2.10n/a19
Sep ’25UK£2.39
UK£2.92
+22.1%
9.3%UK£3.43UK£2.20n/a19
Aug ’25UK£2.32
UK£3.03
+30.9%
10.2%UK£3.63UK£2.27n/a19
Jul ’25UK£2.36
UK£3.10
+31.3%
9.7%UK£3.67UK£2.28n/a19
Jun ’25UK£2.49
UK£3.08
+24.1%
9.3%UK£3.64UK£2.26n/a19
May ’25UK£2.46
UK£3.14
+27.5%
10.2%UK£3.69UK£2.23n/a19
Apr ’25UK£2.86
UK£3.04
+6.0%
11.5%UK£3.67UK£2.20n/a20
Mar ’25UK£2.50
UK£2.78
+11.2%
8.4%UK£3.10UK£2.20n/a20
Feb ’25UK£2.39
UK£2.76
+15.5%
8.5%UK£3.09UK£2.19n/a20
Jan ’25UK£2.44
UK£2.72
+11.3%
8.8%UK£3.04UK£2.19n/a19
Dec ’24UK£2.26
UK£2.69
+19.0%
9.6%UK£3.04UK£2.06n/a20
Nov ’24UK£2.06
UK£2.84
+38.2%
10.5%UK£3.35UK£2.11UK£2.1520
Oct ’24UK£2.18
UK£2.81
+28.9%
10.7%UK£3.29UK£2.07UK£2.2620
Sep ’24UK£2.31
UK£2.66
+15.3%
11.9%UK£3.20UK£2.02UK£2.3920
Aug ’24UK£2.06
UK£2.56
+24.2%
10.5%UK£2.98UK£2.01UK£2.3220
Jul ’24UK£2.05
UK£2.55
+24.2%
11.2%UK£2.99UK£1.92UK£2.3619
Jun ’24UK£2.09
UK£2.60
+24.3%
11.3%UK£3.06UK£1.95UK£2.4919
May ’24UK£2.20
UK£2.56
+16.3%
11.5%UK£2.99UK£1.96UK£2.4619
Apr ’24UK£2.29
UK£2.57
+12.3%
11.1%UK£2.99UK£1.99UK£2.8619
Mar ’24UK£2.25
UK£2.54
+12.8%
10.4%UK£3.00UK£1.96UK£2.5018
Feb ’24UK£2.35
UK£2.54
+8.4%
10.4%UK£3.00UK£1.96UK£2.3918
Jan ’24UK£2.33
UK£2.62
+12.7%
9.5%UK£3.09UK£2.17UK£2.4417
Dec ’23UK£2.32
UK£2.64
+13.8%
9.1%UK£2.99UK£2.18UK£2.2617
Nov ’23UK£2.19
UK£2.73
+25.0%
9.8%UK£3.24UK£2.27UK£2.0614

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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