Reach plc

BATS-CHIXE:RCHL Stock Report

Market Cap: UK£280.5m

Reach Valuation

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

Below Fair Value: RCHL (£0.89) is trading above our estimate of fair value (£0.38)

Significantly Below Fair Value: RCHL is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for RCHL. This is calculated by dividing RCHL's market cap by their current earnings.
What is RCHL's PE Ratio?
PE Ratio6.8x
EarningsUK£41.50m
Market CapUK£280.52m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RCHL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.4x
BMY Bloomsbury Publishing
14.4x-3.1%UK£542.1m
FUTR Future
10.9x5.9%UK£986.7m
CAU Centaur Media
7.2x-17.5%UK£33.6m
SAA M&C Saatchi
21.2x27.4%UK£232.3m
RCHL Reach
6.8x17.8%UK£280.5m

Price-To-Earnings vs Peers: RCHL is good value based on its Price-To-Earnings Ratio (6.8x) compared to the peer average (13.4x).

Price to Earnings Ratio vs Industry

How does RCHL'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
No. of Companies6PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RCHL is good value based on its Price-To-Earnings Ratio (6.8x) compared to the European Media industry average (12.2x).

Price to Earnings Ratio vs Fair Ratio

What is RCHL'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.

RCHL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.8x
Fair PE Ratio20.1x

Price-To-Earnings vs Fair Ratio: RCHL is good value based on its Price-To-Earnings Ratio (6.8x) compared to the estimated Fair Price-To-Earnings Ratio (20.1x).

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 RCHL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.89
UK£1.73
+94.3%
29.1%UK£2.25UK£1.05n/a3
Nov ’25UK£0.94
UK£1.73
+85.4%
29.1%UK£2.25UK£1.05n/a3
Oct ’25UK£0.92
UK£1.73
+89.0%
29.1%UK£2.25UK£1.05n/a3
Sep ’25UK£1.00
UK£1.73
+73.3%
29.1%UK£2.25UK£1.05n/a3
Aug ’25UK£1.07
UK£1.72
+60.7%
30.7%UK£2.25UK£1.00n/a3
Jul ’25UK£0.99
UK£1.60
+61.3%
38.1%UK£2.15UK£0.75n/a3
Jun ’25UK£0.81
UK£1.60
+96.3%
38.1%UK£2.15UK£0.75n/a3
May ’25UK£0.74
UK£1.63
+121.6%
38.4%UK£2.15UK£0.75n/a3
Apr ’25UK£0.78
UK£1.63
+108.2%
38.4%UK£2.15UK£0.75n/a3
Mar ’25UK£0.61
UK£1.44
+135.1%
52.0%UK£2.35UK£0.70n/a4
Feb ’25UK£0.61
UK£1.13
+86.2%
54.1%UK£2.00UK£0.70n/a3
Jan ’25UK£0.75
UK£1.55
+107.8%
41.2%UK£2.35UK£0.85n/a4
Dec ’24UK£0.74
UK£1.55
+110.5%
41.2%UK£2.35UK£0.85n/a4
Nov ’24UK£0.76
UK£1.55
+103.8%
41.2%UK£2.35UK£0.85UK£0.944
Oct ’24UK£0.86
UK£1.59
+85.5%
42.9%UK£2.50UK£0.87UK£0.924
Sep ’24UK£0.75
UK£1.59
+113.5%
42.9%UK£2.50UK£0.87UK£1.004
Aug ’24UK£0.83
UK£1.59
+91.8%
37.7%UK£2.50UK£0.87UK£1.075
Jul ’24UK£0.67
UK£1.59
+138.0%
38.1%UK£2.50UK£0.85UK£0.995
Jun ’24UK£0.72
UK£1.59
+120.8%
38.1%UK£2.50UK£0.85UK£0.815
May ’24UK£0.85
UK£1.60
+87.3%
37.9%UK£2.50UK£0.85UK£0.745
Apr ’24UK£0.76
UK£1.60
+111.6%
37.9%UK£2.50UK£0.85UK£0.785
Mar ’24UK£0.91
UK£1.71
+88.5%
39.1%UK£2.64UK£0.80UK£0.615
Feb ’24UK£0.94
UK£1.71
+82.1%
39.1%UK£2.64UK£0.80UK£0.615
Jan ’24UK£0.96
UK£2.30
+139.8%
38.6%UK£3.05UK£0.80UK£0.755
Dec ’23UK£1.07
UK£2.30
+115.1%
38.6%UK£3.05UK£0.80UK£0.745
Nov ’23UK£0.96
UK£2.30
+139.3%
38.6%UK£3.05UK£0.80UK£0.765

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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