Arecor Therapeutics plc

AIM:AREC Stock Report

Market Cap: UK£19.4m

Arecor Therapeutics Valuation

Is AREC 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 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 Ratio4x
SalesUK£4.90m
Market CapUK£19.44m

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 Average12.8x
TRX Tissue Regenix Group
1.3x15.1%UK£32.1m
PBX ProBiotix Health
9.3xn/aUK£19.8m
VRCI Verici Dx
2.2x78.8%UK£7.6m
SBTX SkinBioTherapeutics
38.3xn/aUK£46.3m
AREC Arecor Therapeutics
4x2.4%UK£19.4m

Price-To-Sales vs Peers: AREC is good value based on its Price-To-Sales Ratio (4x) compared to the peer average (12.8x).

Price to Sales Ratio vs Industry

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

8 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.9.0x15.1%
AREC Arecor Therapeutics
 4x2.4%US$24.59m
GNS Genus
1.7x3.5%US$1.48b
OXB Oxford Biomedica
3.8x18.3%US$462.30m
AREC 4.0xIndustry Avg. 9.0xNo. of Companies8PS01632486480+
8 CompaniesEstimated GrowthMarket Cap
Industry Avg.9.0x37.3%
AREC Arecor Therapeutics
 4x22.1%US$24.59m
No more companies

Price-To-Sales vs Industry: AREC is good value based on its Price-To-Sales Ratio (4x) compared to the European Biotechs industry average (9x).

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 Ratio4x
Fair PS Ratio1.6x

Price-To-Sales vs Fair Ratio: AREC is expensive based on its Price-To-Sales Ratio (4x) compared to the estimated Fair Price-To-Sales Ratio (1.6x).

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£0.52
UK£3.26
+532.4%
20.9%UK£4.10UK£2.43n/a3
Feb ’26UK£0.58
UK£3.26
+456.7%
20.9%UK£4.10UK£2.43n/a3
Jan ’26UK£0.73
UK£3.64
+394.8%
10.1%UK£4.10UK£3.20n/a3
Dec ’25UK£0.77
UK£3.64
+375.4%
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£4.03UK£0.582
Jan ’25UK£1.83
UK£4.58
+151.0%
17.7%UK£5.39UK£3.77UK£0.732
Dec ’24UK£1.90
UK£4.58
+141.1%
17.7%UK£5.39UK£3.77UK£0.772
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 Price Target
Consensus Narrative from 3 Analysts
UK£3.26
Fair Value
84.2% undervalued intrinsic discount
3
Number of Analysts

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/21 15:28
End of Day Share Price 2025/02/21 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Arecor Therapeutics plc is covered by 5 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Dr JuliePanmure Liberum
Julie SimmondsPanmure Liberum
Julie SimmondsPanmure Liberum Historic (Panmure Gordon)