M&C Saatchi plc

AIM:SAA Stock Report

Market Cap: UK£234.7m

M&C Saatchi Valuation

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

Below Fair Value: SAA (£1.92) is trading below our estimate of fair value (£4.75)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SAA. This is calculated by dividing SAA's market cap by their current earnings.
What is SAA's PE Ratio?
PE Ratio21.4x
EarningsUK£10.96m
Market CapUK£234.73m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SAA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average34.9x
SFOR S4 Capital
97.6x69.8%UK£204.9m
TIG Team Internet Group
11.4x1.1%UK£211.7m
NFG Next 15 Group
6.2x-8.0%UK£374.0m
EYE Eagle Eye Solutions Group
24.3x-12.0%UK£139.2m
SAA M&C Saatchi
21.4x27.4%UK£234.7m

Price-To-Earnings vs Peers: SAA is good value based on its Price-To-Earnings Ratio (21.4x) compared to the peer average (34.9x).

Price to Earnings Ratio vs Industry

How does SAA's PE Ratio compare vs other companies in the GB Media Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
SAA 21.4xIndustry Avg. 12.3xNo. of Companies6PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SAA is expensive based on its Price-To-Earnings Ratio (21.4x) compared to the European Media industry average (12.5x).

Price to Earnings Ratio vs Fair Ratio

What is SAA'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.

SAA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.4x
Fair PE Ratio22.2x

Price-To-Earnings vs Fair Ratio: SAA is good value based on its Price-To-Earnings Ratio (21.4x) compared to the estimated Fair Price-To-Earnings Ratio (22.2x).

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 SAA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.92
UK£2.39
+24.3%
8.2%UK£2.65UK£2.10n/a4
Nov ’25UK£2.03
UK£2.39
+17.6%
8.2%UK£2.65UK£2.10n/a4
Oct ’25UK£1.81
UK£2.39
+31.9%
8.2%UK£2.65UK£2.10n/a4
Sep ’25UK£2.09
UK£2.32
+10.9%
11.3%UK£2.65UK£1.92n/a4
Aug ’25UK£2.08
UK£2.32
+11.4%
11.3%UK£2.65UK£1.92n/a4
Jul ’25UK£1.94
UK£2.29
+18.3%
13.0%UK£2.65UK£1.92n/a3
Jun ’25UK£2.09
UK£2.29
+9.6%
13.0%UK£2.65UK£1.92n/a3
May ’25UK£1.93
UK£2.15
+11.7%
20.0%UK£2.65UK£1.60n/a3
Apr ’25UK£1.74
UK£2.15
+23.6%
20.0%UK£2.65UK£1.60n/a3
Mar ’25UK£1.76
UK£2.15
+22.2%
20.0%UK£2.65UK£1.60n/a3
Feb ’25UK£1.76
UK£1.97
+11.7%
13.3%UK£2.20UK£1.60n/a3
Jan ’25UK£1.60
UK£1.90
+18.8%
18.7%UK£2.20UK£1.40n/a3
Dec ’24UK£1.40
UK£1.90
+35.7%
18.7%UK£2.20UK£1.40n/a3
Nov ’24UK£1.22
UK£1.90
+56.4%
18.7%UK£2.20UK£1.40UK£2.033
Oct ’24UK£1.40
UK£1.90
+35.7%
18.7%UK£2.20UK£1.40UK£1.813
Sep ’24UK£1.26
UK£2.13
+70.0%
21.3%UK£2.55UK£1.50UK£2.093
Aug ’24UK£1.35
UK£2.13
+58.6%
21.3%UK£2.55UK£1.50UK£2.083
Jul ’24UK£1.52
UK£2.50
+64.5%
4.3%UK£2.60UK£2.35UK£1.943
Jun ’24UK£1.70
UK£2.63
+54.9%
1.8%UK£2.70UK£2.60UK£2.093
May ’24UK£1.69
UK£2.63
+56.0%
1.8%UK£2.70UK£2.60UK£1.933
Apr ’24UK£1.92
UK£2.63
+36.9%
1.8%UK£2.70UK£2.60UK£1.743
Mar ’24UK£1.88
UK£2.63
+40.1%
1.8%UK£2.70UK£2.60UK£1.763
Feb ’24UK£1.63
UK£2.30
+41.1%
10.7%UK£2.60UK£2.00UK£1.763
Jan ’24UK£1.51
UK£2.46
+62.7%
5.0%UK£2.60UK£2.30UK£1.603
Dec ’23UK£1.46
UK£2.46
+68.8%
5.0%UK£2.60UK£2.30UK£1.403

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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