Solocal Group Valuation

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

LOCALP (€0.04) is trading below our estimate of [[fair value]] (€0.45)

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: LOCALP (€0.04) is trading below our estimate of fair value (€0.45)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for LOCALP. This is calculated by dividing LOCALP's market cap by their current revenue.
What is LOCALP's PS Ratio?
PS Ratio	0.3x
Sales	€337.44m
Market Cap	€89.95m

LOCALP 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	1x
Enterprise Value/EBITDA	6.8x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for LOCALP 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	1.2x
OTMP OnTheMarket	2.7x	11.8%	UK£93.1m
NWOR National World	0.5x	3.5%	UK£50.9m
BOOM Audioboom Group	0.8x	15.2%	UK£41.4m
XLM XLMedia	0.9x	n/a	UK£31.0m
LOCALP Solocal Group	0.3x	4.5%	€90.0m

Price-To-Sales vs Peers: LOCALP is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (1.1x).

Price to Sales Ratio vs Industry

How does LOCALP's PS Ratio compare vs other companies in the European Interactive Media and Services Industry?

8 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	n/a	8.3%
LOCALP Solocal Group	0.3x	4.5%	US$98.74m

8 Companies		Estimated Growth	Market Cap
Industry Avg.	n/a	9.1%
LOCALP Solocal Group	0.3x	105.2%	US$98.74m

No more companies

Price-To-Sales vs Industry: LOCALP is good value based on its Price-To-Sales Ratio (0.3x) compared to the European Interactive Media and Services industry average (1.6x).

Price to Sales Ratio vs Fair Ratio

What is LOCALP'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.

LOCALP PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.3x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate LOCALP's Price-To-Sales Fair Ratio for valuation analysis.

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.

Discover undervalued companies

Métropole Télévision

€1.4b

Provides a range of programs, products, and services on various media.

0MGL

€10.84

0.3%

-12.4%

4imprint Group

UK£1.4b

Operates as a direct marketer of promotional products in North America, the United Kingdom, and Ireland.

FOUR

UK£50.80

0.2%

17.2%

M&C Saatchi

UK£232.3m

Provides advertising and marketing communications services in the United Kingdom, Europe, the Middle East, Africa, the Asia Pacific, and the Americas.

SAA

UK£1.90

-2.3%

35.7%