Arecor Therapeutics plc

AIM:AREC Stock Report

Market Cap: UK£28.9m

Arecor Therapeutics Valuation

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

Below Fair Value: Insufficient data to calculate AREC's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate AREC's fair value for valuation analysis.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for AREC. This is calculated by dividing AREC's market cap by their current revenue.
What is AREC's PS Ratio?
PS Ratio5.8x
SalesUK£4.90m
Market CapUK£28.88m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for AREC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average7.2x
TRX Tissue Regenix Group
1.6x15.1%UK£41.0m
AVCT Avacta Group
7.9x0.4%UK£170.1m
PBX ProBiotix Health
5xn/aUK£10.7m
ONC Oncimmune Holdings
14.1x105.1%UK£16.9m
AREC Arecor Therapeutics
5.8x35.2%UK£28.9m

Price-To-Sales vs Peers: AREC is good value based on its Price-To-Sales Ratio (5.8x) compared to the peer average (7.2x).

Price to Sales Ratio vs Industry

How does AREC's PS Ratio compare vs other companies in the GB Biotechs Industry?

5 CompaniesPrice / SalesEstimated GrowthMarket Cap
GNS Genus
1.7x3.5%US$1.35b
OXB Oxford Biomedica
4.5x21.0%US$543.81m
TRX Tissue Regenix Group
1.6x15.1%US$51.25m
VRCI Verici Dx
2.4x78.8%US$10.24m
AREC 5.8xIndustry Avg. 8.0xNo. of Companies8PS020406080100+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: AREC is good value based on its Price-To-Sales Ratio (5.8x) compared to the European Biotechs industry average (8x).

Price to Sales Ratio vs Fair Ratio

What is AREC'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.

AREC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio5.8x
Fair PS Ratio4x

Price-To-Sales vs Fair Ratio: AREC is expensive based on its Price-To-Sales Ratio (5.8x) compared to the estimated Fair Price-To-Sales Ratio (4x).

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 AREC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.75
UK£3.64
+384.9%
10.1%UK£4.10UK£3.20n/a3
Nov ’25UK£0.75
UK£3.65
+387.1%
10.6%UK£4.15UK£3.20n/a3
Oct ’25UK£0.66
UK£3.65
+453.5%
10.6%UK£4.15UK£3.20n/a3
Sep ’25UK£0.86
UK£3.46
+299.4%
7.4%UK£3.71UK£3.20n/a2
Aug ’25UK£0.93
UK£4.18
+351.4%
23.4%UK£5.15UK£3.20n/a2
Jul ’25UK£1.20
UK£5.01
+317.2%
14.9%UK£5.84UK£4.03n/a3
Jun ’25UK£1.59
UK£5.04
+216.8%
14.9%UK£5.84UK£4.03n/a3
May ’25UK£1.38
UK£4.71
+242.5%
14.4%UK£5.39UK£4.03n/a2
Apr ’25UK£1.40
UK£4.71
+236.4%
14.4%UK£5.39UK£4.03n/a2
Mar ’25UK£1.38
UK£4.71
+242.5%
14.4%UK£5.39UK£4.03n/a2
Feb ’25UK£1.66
UK£4.71
+183.7%
14.4%UK£5.39UK£4.03n/a2
Jan ’25UK£1.83
UK£4.58
+151.0%
17.7%UK£5.39UK£3.77n/a2
Dec ’24UK£1.90
UK£4.58
+141.1%
17.7%UK£5.39UK£3.77n/a2
Nov ’24UK£1.90
UK£4.55
+139.5%
17.1%UK£5.33UK£3.77UK£0.752
Oct ’24UK£1.93
UK£4.55
+136.4%
17.1%UK£5.33UK£3.77UK£0.662
Sep ’24UK£1.90
UK£4.55
+139.5%
17.1%UK£5.33UK£3.77UK£0.862
Aug ’24UK£1.93
UK£4.55
+136.4%
17.1%UK£5.33UK£3.77UK£0.932
Jul ’24UK£2.30
UK£4.55
+97.8%
17.1%UK£5.33UK£3.77UK£1.202
Jun ’24UK£2.50
UK£4.55
+82.0%
17.1%UK£5.33UK£3.77UK£1.592
May ’24UK£2.70
UK£4.49
+66.1%
15.9%UK£5.20UK£3.77UK£1.382
Apr ’24UK£2.60
UK£4.39
+68.8%
18.5%UK£5.20UK£3.58UK£1.402
Mar ’24UK£2.48
UK£4.39
+77.0%
18.5%UK£5.20UK£3.58UK£1.382

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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