ConvaTec Group Valuation

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

Below Fair Value: CTEC (£2.89) is trading below our estimate of fair value (£3.64)

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?

Other financial metrics that can be useful for relative valuation.

CTEC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4x
Enterprise Value/EBITDA19x
PEG Ratio2.8x

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 Average31.7x
AMS Advanced Medical Solutions Group
26x11.7%UK£412.9m
TSTL Tristel
35.2x5.8%UK£212.5m
SN. Smith & Nephew
43.6x21.3%UK£9.1b
MDC Mediclinic International
21.9x10.7%UK£3.7b
CTEC ConvaTec Group
57.3x20.6%UK£5.9b

Price-To-Earnings vs Peers: CTEC is expensive based on its Price-To-Earnings Ratio (57.3x) compared to the peer average (34.9x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: CTEC is expensive based on its Price-To-Earnings Ratio (57.3x) compared to the European Medical Equipment industry average (33.4x).


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 Ratio57.3x
Fair PE Ratio39.5x

Price-To-Earnings vs Fair Ratio: CTEC is expensive based on its Price-To-Earnings Ratio (57.3x) compared to the estimated Fair Price-To-Earnings Ratio (39.5x).


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£2.86
UK£3.03
+6.0%
11.4%UK£3.67UK£2.21n/a20
Mar ’25UK£2.50
UK£2.78
+11.2%
8.4%UK£3.10UK£2.21n/a20
Feb ’25UK£2.39
UK£2.76
+15.5%
8.5%UK£3.09UK£2.20n/a20
Jan ’25UK£2.44
UK£2.72
+11.3%
8.8%UK£3.04UK£2.20n/a19
Dec ’24UK£2.26
UK£2.69
+19.1%
9.6%UK£3.04UK£2.06n/a20
Nov ’24UK£2.06
UK£2.84
+38.3%
10.5%UK£3.35UK£2.11n/a20
Oct ’24UK£2.18
UK£2.81
+28.9%
10.7%UK£3.29UK£2.07n/a20
Sep ’24UK£2.31
UK£2.66
+15.3%
11.9%UK£3.20UK£2.02n/a20
Aug ’24UK£2.06
UK£2.56
+24.2%
10.5%UK£2.98UK£2.01n/a20
Jul ’24UK£2.05
UK£2.55
+24.2%
11.2%UK£2.99UK£1.92n/a19
Jun ’24UK£2.09
UK£2.60
+24.3%
11.3%UK£3.06UK£1.95n/a19
May ’24UK£2.20
UK£2.54
+15.6%
11.7%UK£2.99UK£1.96n/a18
Apr ’24UK£2.29
UK£2.55
+11.4%
11.2%UK£2.98UK£1.98n/a18
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
Oct ’23UK£2.06
UK£2.83
+37.7%
9.7%UK£3.29UK£2.32UK£2.1813
Sep ’23UK£2.10
UK£2.67
+27.2%
9.4%UK£3.10UK£2.19UK£2.3113
Aug ’23UK£2.27
UK£2.54
+12.0%
10.4%UK£2.97UK£2.06UK£2.0614
Jul ’23UK£2.25
UK£2.60
+15.7%
11.6%UK£3.09UK£2.06UK£2.0514
Jun ’23UK£2.13
UK£2.43
+14.0%
14.9%UK£2.97UK£1.55UK£2.0915
May ’23UK£2.12
UK£2.40
+13.2%
15.8%UK£3.10UK£1.61UK£2.2015
Apr ’23UK£2.15
UK£2.38
+10.3%
16.4%UK£3.09UK£1.60UK£2.2915
Mar ’23UK£1.78
UK£2.47
+39.2%
17.2%UK£3.12UK£1.74UK£2.2514

Analyst Forecast: Target price is less than 20% higher than the current share price.


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