Essentra Valuation

Q: What is the Fair Price of ESNT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ESNT (£1.76) is trading below our estimate of [[fair value]] (£3.36)

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

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ESNT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ESNT (£1.76) is trading below our estimate of fair value (£3.36)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ESNT. This is calculated by dividing ESNT's market cap by their current preferred multiple.
What is ESNT's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	UK£505.32m

ESNT 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/Revenue	1.9x
Enterprise Value/EBITDA	15.1x
PEG Ratio	404.5x

Price to Sales Ratio vs Peers

How does ESNT's PS Ratio compare to its peers?

The above table shows the PS ratio for ESNT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	1.8x
ZTF Zotefoams	1.7x	6.6%	UK£228.5m
SYNT Synthomer	0.2x	6.2%	UK£394.2m
ITX Itaconix	3.4x	21.4%	UK£20.2m
ELM Elementis	1.7x	3.6%	UK£969.7m
ESNT Essentra	1.6x	1.8%	UK£505.3m

Price-To-Sales vs Peers: ESNT is good value based on its Price-To-Sales Ratio (1.6x) compared to the peer average (1.8x).

Price to Earnings Ratio vs Industry

How does ESNT's PE Ratio compare vs other companies in the GB Chemicals Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	29.6%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	29.6%
	n/a	n/a	n/a

No more companies

Price-To-Sales vs Industry: ESNT is good value based on its Price-To-Sales Ratio (1.6x) compared to the UK Chemicals industry average (1.7x).

Price to Sales Ratio vs Fair Ratio

What is ESNT's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ESNT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.6x
Fair PS Ratio	1.3x

Price-To-Sales vs Fair Ratio: ESNT is expensive based on its Price-To-Sales Ratio (1.6x) compared to the estimated Fair Price-To-Sales Ratio (1.3x).

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 ESNT forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	UK£1.76	UK£2.63 +50.0%	12.7%	UK£3.15	UK£2.20	n/a	6
Aug ’25	UK£1.71	UK£2.63 +54.0%	12.7%	UK£3.15	UK£2.20	n/a	6
Jul ’25	UK£1.60	UK£2.65 +65.2%	12.4%	UK£3.15	UK£2.20	n/a	6
Jun ’25	UK£1.65	UK£2.61 +58.0%	12.4%	UK£3.15	UK£2.20	n/a	7
May ’25	UK£1.76	UK£2.61 +47.8%	12.4%	UK£3.15	UK£2.20	n/a	7
Apr ’25	UK£1.76	UK£2.61 +48.3%	12.4%	UK£3.15	UK£2.20	n/a	7
Mar ’25	UK£1.72	UK£2.63 +53.0%	11.8%	UK£3.15	UK£2.20	n/a	7
Feb ’25	UK£1.72	UK£2.63 +52.5%	11.8%	UK£3.15	UK£2.20	n/a	7
Jan ’25	UK£1.70	UK£2.61 +53.7%	12.1%	UK£3.15	UK£2.20	n/a	7
Dec ’24	UK£1.53	UK£2.61 +70.8%	12.1%	UK£3.15	UK£2.20	n/a	7
Nov ’24	UK£1.54	UK£2.61 +69.3%	12.1%	UK£3.15	UK£2.20	n/a	7
Oct ’24	UK£1.62	UK£2.69 +66.4%	9.9%	UK£3.15	UK£2.30	n/a	7
Sep ’24	UK£1.48	UK£2.68 +81.0%	10.1%	UK£3.15	UK£2.30	n/a	7
Aug ’24	UK£1.58	UK£2.77 +75.0%	7.6%	UK£3.15	UK£2.55	UK£1.71	7
Jul ’24	UK£1.62	UK£2.77 +70.9%	7.6%	UK£3.15	UK£2.55	UK£1.60	7
Jun ’24	UK£1.81	UK£2.77 +53.3%	7.6%	UK£3.15	UK£2.55	UK£1.65	7
May ’24	UK£2.07	UK£2.80 +35.6%	7.6%	UK£3.15	UK£2.55	UK£1.76	6
Apr ’24	UK£1.93	UK£2.82 +45.8%	8.1%	UK£3.15	UK£2.55	UK£1.76	5
Mar ’24	UK£2.24	UK£2.98 +33.3%	3.8%	UK£3.15	UK£2.80	UK£1.72	5
Feb ’24	UK£2.19	UK£2.98 +36.1%	3.8%	UK£3.15	UK£2.80	UK£1.72	5
Jan ’24	UK£2.37	UK£3.03 +27.9%	2.5%	UK£3.15	UK£2.95	UK£1.70	4
Dec ’23	UK£2.49	UK£2.98 +20.1%	0.8%	UK£3.00	UK£2.95	UK£1.53	3
Nov ’23	UK£2.22	UK£2.90 +30.6%	3.7%	UK£3.00	UK£2.75	UK£1.54	3
Oct ’23	UK£1.83	UK£3.76 +106.1%	18.8%	UK£4.95	UK£3.10	UK£1.62	4
Sep ’23	UK£1.91	UK£3.76 +96.6%	18.8%	UK£4.95	UK£3.10	UK£1.48	4
Aug ’23	UK£2.48	UK£3.57 +43.8%	4.8%	UK£3.80	UK£3.40	UK£1.58	3

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.