ECO Animal Health Group plc

AIM:EAH Stock Report

Market Cap: UK£44.7m

ECO Animal Health Group Valuation

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

Below Fair Value: EAH (£0.66) is trading below our estimate of fair value (£4.22)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for EAH. This is calculated by dividing EAH's market cap by their current earnings.
What is EAH's PE Ratio?
PE Ratio42.7x
EarningsUK£1.05m
Market CapUK£44.72m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for EAH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.5x
ANCR Animalcare Group
32.1x15.8%UK£148.5m
HIK Hikma Pharmaceuticals
19x12.8%UK£4.3b
OPC OPC Pharmaceutical
17.1xn/a₫1.5t
500009 Ambalal Sarabhai Enterprises
34xn/a₹4.2b
EAH ECO Animal Health Group
42.7x34.2%UK£44.7m

Price-To-Earnings vs Peers: EAH is expensive based on its Price-To-Earnings Ratio (42.7x) compared to the peer average (25.5x).

Price to Earnings Ratio vs Industry

How does EAH's PE Ratio compare vs other companies in the European Pharmaceuticals Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
EAH 42.7xIndustry Avg. 20.3xNo. of Companies10PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: EAH is expensive based on its Price-To-Earnings Ratio (42.7x) compared to the European Pharmaceuticals industry average (20.3x).

Price to Earnings Ratio vs Fair Ratio

What is EAH'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.

EAH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio42.7x
Fair PE Ratio20.5x

Price-To-Earnings vs Fair Ratio: EAH is expensive based on its Price-To-Earnings Ratio (42.7x) compared to the estimated Fair Price-To-Earnings Ratio (20.5x).

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 EAH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.66
UK£1.76
+166.5%
27.6%UK£2.58UK£1.39n/a4
Nov ’25UK£0.74
UK£1.76
+137.7%
27.6%UK£2.58UK£1.39n/a4
Oct ’25UK£0.76
UK£1.76
+131.4%
27.6%UK£2.58UK£1.39n/a4
Sep ’25UK£1.11
UK£1.88
+70.5%
30.0%UK£2.84UK£1.42n/a4
Aug ’25UK£1.08
UK£1.88
+75.2%
30.0%UK£2.84UK£1.42n/a4
Jul ’25UK£1.28
UK£1.89
+47.6%
29.5%UK£2.83UK£1.42n/a4
Jun ’25UK£1.25
UK£1.89
+51.2%
29.5%UK£2.83UK£1.42n/a4
May ’25UK£1.12
UK£1.89
+69.1%
29.5%UK£2.83UK£1.42n/a4
Apr ’25UK£0.85
UK£1.85
+116.5%
26.6%UK£2.68UK£1.42n/a4
Mar ’25UK£0.93
UK£1.85
+99.1%
26.6%UK£2.68UK£1.42n/a4
Feb ’25UK£1.09
UK£1.78
+64.1%
26.0%UK£2.68UK£1.42n/a5
Jan ’25UK£1.09
UK£1.78
+64.1%
26.0%UK£2.68UK£1.42n/a5
Dec ’24UK£1.07
UK£1.87
+75.8%
25.4%UK£2.68UK£1.50n/a4
Nov ’24UK£1.06
UK£1.50
+41.0%
0.3%UK£1.50UK£1.49UK£0.742
Oct ’24UK£1.14
UK£1.50
+31.7%
0.3%UK£1.50UK£1.49UK£0.762
Sep ’24UK£1.08
UK£1.50
+38.4%
0.3%UK£1.50UK£1.49UK£1.112
Aug ’24UK£1.11
UK£1.50
+35.3%
0.3%UK£1.50UK£1.49UK£1.082
Jul ’24UK£1.03
UK£1.58
+53.7%
4.8%UK£1.65UK£1.50UK£1.282
Jun ’24UK£1.13
UK£1.87
+66.2%
22.5%UK£2.46UK£1.50UK£1.253
May ’24UK£1.21
UK£1.87
+54.5%
22.5%UK£2.46UK£1.50UK£1.123
Apr ’24UK£0.96
UK£2.06
+113.0%
19.7%UK£2.46UK£1.65UK£0.852
Mar ’24UK£1.22
UK£2.05
+68.7%
20.0%UK£2.46UK£1.64UK£0.932
Feb ’24UK£0.91
UK£2.05
+125.3%
20.0%UK£2.46UK£1.64UK£1.092
Jan ’24UK£1.01
UK£2.05
+103.0%
20.0%UK£2.46UK£1.64UK£1.092
Dec ’23UK£0.99
UK£2.27
+129.0%
20.0%UK£2.70UK£1.64UK£1.073
Nov ’23UK£1.01
UK£2.27
+125.5%
20.0%UK£2.70UK£1.64UK£1.063

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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