Primary Health Properties Plc

BATS-CHIXE:PHPL Stock Report

Market Cap: UK£1.3b

Primary Health Properties Valuation

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

Below Fair Value: PHPL (£0.95) is trading below our estimate of fair value (£1.2)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for PHPL. This is calculated by dividing PHPL's market cap by their current revenue.
What is PHPL's PS Ratio?
PS Ratio7.2x
SalesUK£177.80m
Market CapUK£1.27b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for PHPL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average7.1x
AGR Assura
7.8x4.8%UK£1.3b
THRL Target Healthcare REIT
7.6x3.2%UK£527.8m
CRT Care REIT
6.5x6.0%UK£346.0m
LABS Life Science REIT
6.7x6.3%UK£134.4m
PHPL Primary Health Properties
7.2x-0.4%UK£1.3b

Price-To-Sales vs Peers: PHPL is expensive based on its Price-To-Sales Ratio (7.2x) compared to the peer average (7.1x).

Price to Sales Ratio vs Industry

How does PHPL's PS Ratio compare vs other companies in the Global Health Care REITs Industry?

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
No. of Companies6PS03.26.49.612.816+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: PHPL is expensive based on its Price-To-Sales Ratio (7.2x) compared to the Global Health Care REITs industry average (6.5x).

Price to Sales Ratio vs Fair Ratio

What is PHPL'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.

PHPL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio7.2x
Fair PS Ratio10.4x

Price-To-Sales vs Fair Ratio: PHPL is good value based on its Price-To-Sales Ratio (7.2x) compared to the estimated Fair Price-To-Sales Ratio (10.4x).

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 PHPL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.95
UK£1.05
+10.4%
6.2%UK£1.13UK£0.95n/a9
Nov ’25UK£0.96
UK£1.05
+8.7%
8.7%UK£1.20UK£0.91n/a9
Oct ’25UK£1.02
UK£1.04
+1.8%
9.6%UK£1.20UK£0.89n/a9
Sep ’25UK£0.96
UK£1.03
+7.1%
9.5%UK£1.20UK£0.89n/a9
Aug ’25UK£0.93
UK£1.03
+10.8%
9.5%UK£1.20UK£0.89n/a9
Jul ’25UK£0.93
UK£1.04
+11.8%
9.6%UK£1.20UK£0.89n/a9
Jun ’25UK£0.93
UK£1.02
+9.8%
9.4%UK£1.20UK£0.89n/a9
May ’25UK£0.92
UK£1.03
+12.6%
10.6%UK£1.20UK£0.89n/a9
Apr ’25UK£0.94
UK£1.02
+8.7%
9.4%UK£1.20UK£0.89n/a9
Mar ’25UK£0.91
UK£1.03
+13.3%
9.2%UK£1.20UK£0.89n/a9
Feb ’25UK£0.94
UK£1.07
+13.7%
9.0%UK£1.22UK£0.94n/a9
Jan ’25UK£1.04
UK£1.07
+2.7%
9.0%UK£1.22UK£0.94n/a9
Dec ’24UK£1.00
UK£1.07
+6.4%
9.0%UK£1.22UK£0.94n/a9
Nov ’24UK£0.91
UK£1.07
+17.3%
9.0%UK£1.22UK£0.94UK£0.969
Oct ’24UK£0.93
UK£1.07
+14.8%
9.4%UK£1.22UK£0.94UK£1.028
Sep ’24UK£0.93
UK£1.07
+15.5%
9.9%UK£1.22UK£0.94UK£0.968
Aug ’24UK£0.93
UK£1.13
+22.4%
17.7%UK£1.62UK£0.94UK£0.938
Jul ’24UK£0.96
UK£1.21
+26.3%
17.8%UK£1.62UK£0.98UK£0.938
Jun ’24UK£1.00
UK£1.23
+22.4%
17.6%UK£1.62UK£0.98UK£0.938
May ’24UK£1.06
UK£1.23
+16.5%
16.2%UK£1.62UK£1.00UK£0.929
Apr ’24UK£1.01
UK£1.23
+21.5%
16.2%UK£1.62UK£1.00UK£0.949
Mar ’24UK£1.07
UK£1.25
+16.8%
16.7%UK£1.62UK£1.00UK£0.919
Feb ’24UK£1.11
UK£1.33
+19.9%
17.4%UK£1.65UK£1.05UK£0.949
Jan ’24UK£1.11
UK£1.37
+22.9%
18.6%UK£1.65UK£1.05UK£1.049
Dec ’23UK£1.11
UK£1.37
+23.3%
18.6%UK£1.65UK£1.05UK£1.009
Nov ’23UK£1.14
UK£1.45
+27.3%
13.8%UK£1.65UK£1.10UK£0.919

Analyst Forecast: Target price is less than 20% higher than the current share price.

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