Treatt Valuation

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

TET (£4.9) is trading below our estimate of [[fair value]] (£9.01)

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: TET (£4.9) is trading below our estimate of fair value (£9.01)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for TET. This is calculated by dividing TET's market cap by their current earnings.
What is TET's PE Ratio?
PE Ratio	20.7x
Earnings	UK£14.40m
Market Cap	UK£297.68m

TET 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	12x
PEG Ratio	2.2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TET vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	25.8x
VCT Victrex	56x	33.5%	UK£963.5m
IOF Iofina	12.9x	n/a	UK£36.5m
JMAT Johnson Matthey	4.5x	-23.5%	UK£2.4b
CRDA Croda International	29.8x	15.2%	UK£4.9b
TET Treatt	20.7x	9.5%	UK£297.7m

Price-To-Earnings vs Peers: TET is good value based on its Price-To-Earnings Ratio (20.7x) compared to the peer average (25.8x).

Price to Earnings Ratio vs Industry

How does TET's PE Ratio compare vs other companies in the European Chemicals Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: TET is expensive based on its Price-To-Earnings Ratio (20.7x) compared to the European Chemicals industry average (17.7x).

Price to Earnings Ratio vs Fair Ratio

What is TET'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.

TET PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	20.7x
Fair PE Ratio	12.9x

Price-To-Earnings vs Fair Ratio: TET is expensive based on its Price-To-Earnings Ratio (20.7x) compared to the estimated Fair Price-To-Earnings Ratio (12.9x).

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 TET 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£4.90	UK£6.35 +29.6%	22.2%	UK£8.80	UK£4.80	n/a	7
Dec ’25	UK£4.02	UK£6.49 +61.5%	22.6%	UK£8.80	UK£4.80	n/a	7
Nov ’25	UK£5.06	UK£6.66 +31.7%	19.9%	UK£8.80	UK£5.00	n/a	7
Oct ’25	UK£4.32	UK£6.66 +54.4%	19.9%	UK£8.80	UK£5.00	n/a	7
Sep ’25	UK£4.76	UK£6.66 +40.0%	19.9%	UK£8.80	UK£5.00	n/a	7
Aug ’25	UK£4.52	UK£6.66 +47.4%	19.9%	UK£8.80	UK£5.00	n/a	7
Jul ’25	UK£4.27	UK£6.66 +56.2%	19.9%	UK£8.80	UK£5.00	n/a	7
Jun ’25	UK£5.00	UK£6.68 +33.5%	19.7%	UK£8.80	UK£5.00	n/a	7
May ’25	UK£4.82	UK£6.85 +42.2%	18.5%	UK£8.80	UK£5.00	n/a	7
Apr ’25	UK£4.26	UK£6.85 +60.8%	18.5%	UK£8.80	UK£5.00	n/a	7
Mar ’25	UK£4.04	UK£7.01 +73.6%	16.5%	UK£8.80	UK£5.00	n/a	7
Feb ’25	UK£4.64	UK£7.01 +51.3%	16.5%	UK£8.80	UK£5.00	n/a	7
Jan ’25	UK£5.03	UK£7.01 +39.4%	16.5%	UK£8.80	UK£5.00	n/a	7
Dec ’24	UK£4.65	UK£7.01 +50.8%	16.5%	UK£8.80	UK£5.00	UK£4.02	7
Nov ’24	UK£4.49	UK£7.16 +59.6%	15.4%	UK£8.80	UK£5.00	UK£5.06	7
Oct ’24	UK£5.07	UK£7.76 +53.0%	7.6%	UK£8.80	UK£6.70	UK£4.32	7
Sep ’24	UK£5.56	UK£7.76 +39.5%	7.6%	UK£8.80	UK£6.70	UK£4.76	7
Aug ’24	UK£6.31	UK£7.69 +21.8%	7.6%	UK£8.80	UK£6.70	UK£4.52	8
Jul ’24	UK£6.25	UK£7.71 +23.4%	8.0%	UK£8.80	UK£6.70	UK£4.27	7
Jun ’24	UK£6.82	UK£7.60 +11.4%	10.0%	UK£8.80	UK£6.40	UK£5.00	7
May ’24	UK£6.67	UK£7.54 +13.1%	11.1%	UK£8.80	UK£6.30	UK£4.82	7
Apr ’24	UK£5.82	UK£7.47 +28.3%	11.8%	UK£8.80	UK£6.30	UK£4.26	6
Mar ’24	UK£5.69	UK£7.47 +31.2%	11.8%	UK£8.80	UK£6.30	UK£4.04	6
Feb ’24	UK£6.16	UK£7.61 +23.5%	10.0%	UK£8.80	UK£6.30	UK£4.64	6
Jan ’24	UK£6.25	UK£7.61 +21.7%	10.0%	UK£8.80	UK£6.30	UK£5.03	6
Dec ’23	UK£6.79	UK£7.61 +12.1%	10.0%	UK£8.80	UK£6.30	UK£4.65	6

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.