Time Out Group Valuation

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

TMO (£0.53) is trading below our estimate of [[fair value]] (£1.09)

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

Below Fair Value: TMO (£0.53) is trading below our estimate of fair value (£1.09)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for TMO. This is calculated by dividing TMO's market cap by their current revenue.
What is TMO's PS Ratio?
PS Ratio	1.8x
Sales	UK£103.11m
Market Cap	UK£187.49m

TMO 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	2.4x
Enterprise Value/EBITDA	35.2x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for TMO 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	1x
RCH Reach	0.5x	-2.5%	UK£279.6m
BMY Bloomsbury Publishing	1.4x	-0.3%	UK£538.9m
FUTR Future	1.2x	1.0%	UK£967.0m
CAU Centaur Media	1x	4.0%	UK£36.6m
TMO Time Out Group	1.8x	6.6%	UK£187.5m

Price-To-Sales vs Peers: TMO is expensive based on its Price-To-Sales Ratio (1.8x) compared to the peer average (1x).

Price to Sales Ratio vs Industry

How does TMO's PS Ratio compare vs other companies in the GB Media Industry?

3 Companies	Price / Sales	Estimated Growth	Market Cap
TMG Mission Group	0.09x	-41.9%	US$21.06m
JWNG Jaywing	0.08x	n/a	US$2.05m
BONH Bonhill Group	0.04x	n/a	US$681.51k

No more companies available in this PS range

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: TMO is expensive based on its Price-To-Sales Ratio (1.8x) compared to the UK Media industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is TMO'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.

TMO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.8x
Fair PS Ratio	1.5x

Price-To-Sales vs Fair Ratio: TMO is expensive based on its Price-To-Sales Ratio (1.8x) compared to the estimated Fair Price-To-Sales Ratio (1.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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