Team17 Group plc

AIM:TM17 Stock Report

Market Cap: UK£290.9m

Team17 Group Valuation

Is TM17 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-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 TM17 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TM17 (£2.02) is trading below our estimate of fair value (£6.65)

Significantly Below Fair Value: TM17 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TM17?

Key metric: As TM17 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for TM17. This is calculated by dividing TM17's market cap by their current revenue.
What is TM17's PS Ratio?
PS Ratio1.7x
SalesUK£167.42m
Market CapUK£290.88m

Price to Sales Ratio vs Peers

How does TM17's PS Ratio compare to its peers?

The above table shows the PS ratio for TM17 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average8.7x
GMR Gaming Realms
4.3x11.6%UK£108.3m
DEVO Devolver Digital
1.5x12.1%UK£117.2m
FDEV Frontier Developments
0.9x2.0%UK£83.2m
MOS Mobile Streams
27.9xn/aUK£25.8m
TM17 Team17 Group
1.7x2.2%UK£290.9m

Price-To-Sales vs Peers: TM17 is good value based on its Price-To-Sales Ratio (1.7x) compared to the peer average (8.7x).

Price to Sales Ratio vs Industry

How does TM17's PS Ratio compare vs other companies in the GB Entertainment Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
CINE Cineworld Group
0.002xn/aUS$6.69m
LVCG Live Company Group
0.1xn/aUS$1.37m
GILD Guild Esports
0.07xn/aUS$335.95k
No more companies available in this PS range
TM17 1.7xIndustry Avg. 1.4xNo. of Companies3PS00.61.21.82.43+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: TM17 is expensive based on its Price-To-Sales Ratio (1.7x) compared to the European Entertainment industry average (1.4x).

Price to Sales Ratio vs Fair Ratio

What is TM17'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.

TM17 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.7x
Fair PS Ratio1.2x

Price-To-Sales vs Fair Ratio: TM17 is expensive based on its Price-To-Sales Ratio (1.7x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).

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 TM17 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£2.02
UK£3.54
+75.4%
19.3%UK£4.90UK£2.30n/a11
Nov ’25UK£2.35
UK£3.54
+50.7%
19.3%UK£4.90UK£2.30n/a11
Oct ’25UK£2.75
UK£3.54
+28.8%
19.3%UK£4.90UK£2.30n/a11
Sep ’25UK£2.54
UK£3.57
+40.4%
18.8%UK£4.90UK£2.30n/a11
Aug ’25UK£2.90
UK£3.51
+21.0%
19.7%UK£4.90UK£2.30n/a12
Jul ’25UK£2.83
UK£3.50
+24.0%
20.6%UK£4.90UK£2.30n/a11
Jun ’25UK£3.12
UK£3.42
+9.8%
20.9%UK£4.90UK£2.30n/a13
May ’25UK£2.60
UK£3.40
+30.8%
21.9%UK£4.90UK£2.30n/a12
Apr ’25UK£2.35
UK£3.25
+38.4%
25.2%UK£4.90UK£2.25n/a12
Mar ’25UK£2.35
UK£3.54
+50.5%
33.5%UK£6.40UK£2.25n/a12
Feb ’25UK£2.50
UK£3.69
+47.5%
34.0%UK£6.40UK£2.25n/a13
Jan ’25UK£1.85
UK£4.09
+121.2%
46.8%UK£8.75UK£1.80n/a12
Dec ’24UK£1.65
UK£4.58
+177.3%
38.2%UK£8.75UK£2.25n/a12
Nov ’24UK£2.68
UK£5.58
+108.7%
23.6%UK£8.75UK£3.60UK£2.3511
Oct ’24UK£2.65
UK£5.57
+110.2%
22.6%UK£8.75UK£3.60UK£2.7512
Sep ’24UK£3.35
UK£5.71
+70.4%
21.4%UK£8.75UK£3.60UK£2.5411
Aug ’24UK£3.16
UK£5.66
+79.1%
20.9%UK£8.75UK£3.60UK£2.9012
Jul ’24UK£3.60
UK£5.75
+59.8%
18.2%UK£8.75UK£4.75UK£2.8312
Jun ’24UK£3.60
UK£5.75
+59.8%
18.2%UK£8.75UK£4.75UK£3.1212
May ’24UK£3.62
UK£5.76
+59.1%
18.4%UK£8.80UK£4.75UK£2.6012
Apr ’24UK£3.80
UK£5.78
+52.1%
18.5%UK£8.80UK£4.75UK£2.3512
Mar ’24UK£4.62
UK£5.98
+29.4%
17.5%UK£8.80UK£5.00UK£2.3511
Feb ’24UK£4.60
UK£5.71
+24.2%
21.4%UK£8.80UK£3.46UK£2.5012
Jan ’24UK£4.40
UK£5.64
+28.1%
22.7%UK£8.80UK£3.46UK£1.8512
Dec ’23UK£4.42
UK£5.64
+27.6%
22.7%UK£8.80UK£3.46UK£1.6512
Nov ’23UK£4.17
UK£5.64
+35.2%
22.7%UK£8.80UK£3.46UK£2.6812

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.

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