Town Centre Securities Plc

BATS-CHIXE:TOWNL Stock Report

Market Cap: UK£55.0m

Town Centre Securities Valuation

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

Below Fair Value: TOWNL (£1.38) is trading above our estimate of fair value (£0.45)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for TOWNL. This is calculated by dividing TOWNL's market cap by their current revenue.
What is TOWNL's PS Ratio?
PS Ratio1.8x
SalesUK£30.36m
Market CapUK£54.98m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for TOWNL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average5.2x
AIRE Alternative Income REIT
7.2xn/aUK£56.9m
RLE Real Estate Investors
5x-32.7%UK£54.9m
SERE Schroder European Real Estate Investment Trust
5.2x5.2%UK£92.9m
GRIO Ground Rents Income Fund
3.5xn/aUK£20.6m
TOWNL Town Centre Securities
1.8x-0.6%UK£55.0m

Price-To-Sales vs Peers: TOWNL is good value based on its Price-To-Sales Ratio (1.8x) compared to the peer average (5.7x).

Price to Sales Ratio vs Industry

How does TOWNL's PS Ratio compare vs other companies in the GB REITs Industry?

0 CompaniesPrice / SalesEstimated GrowthMarket Cap
No more companies available in this PS range
No. of Companies4PS048121620+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: TOWNL is good value based on its Price-To-Sales Ratio (1.8x) compared to the UK REITs industry average (6.6x).

Price to Sales Ratio vs Fair Ratio

What is TOWNL'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.

TOWNL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.8x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate TOWNL's Price-To-Sales Fair Ratio for valuation analysis.

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 TOWNL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
UK£1.93
0%
9.1%UK£2.10UK£1.75n/a2
Nov ’25n/a
UK£1.93
0%
9.1%UK£2.10UK£1.75n/a2
Oct ’25n/a
UK£1.93
0%
9.1%UK£2.10UK£1.75n/a2
Sep ’25n/a
UK£1.93
0%
9.1%UK£2.10UK£1.75n/a2
Aug ’25n/a
UK£1.93
0%
9.1%UK£2.10UK£1.75n/a2
Jul ’25n/a
UK£1.93
0%
9.1%UK£2.10UK£1.75n/a2
Jun ’25n/a
UK£1.93
0%
9.1%UK£2.10UK£1.75n/a2
May ’25UK£1.38
UK£1.93
+39.5%
9.1%UK£2.10UK£1.75n/a2
Apr ’25UK£1.38
UK£1.93
+39.5%
9.1%UK£2.10UK£1.75n/a2
Mar ’25n/a
UK£1.93
0%
9.1%UK£2.10UK£1.75n/a2
Feb ’25UK£1.36
UK£1.93
+41.5%
9.1%UK£2.10UK£1.75n/a2
Jan ’25UK£1.38
UK£1.93
+39.5%
9.1%UK£2.10UK£1.75n/a2
Dec ’24n/a
UK£1.93
0%
9.1%UK£2.10UK£1.75n/a2
Nov ’24n/a
UK£1.83
0%
4.1%UK£1.90UK£1.75n/a2
Oct ’24n/a
UK£1.83
0%
4.1%UK£1.90UK£1.75n/a2
Sep ’24n/a
UK£1.83
0%
4.1%UK£1.90UK£1.75n/a2
Aug ’24n/a
UK£1.83
0%
4.1%UK£1.90UK£1.75n/a2
Jul ’24n/a
UK£1.83
0%
4.1%UK£1.90UK£1.75n/a2
Jun ’24n/a
UK£1.93
0%
9.1%UK£2.10UK£1.75n/a2
May ’24n/a
UK£1.93
0%
9.1%UK£2.10UK£1.75UK£1.382
Apr ’24n/a
UK£1.93
0%
9.1%UK£2.10UK£1.75UK£1.382
Mar ’24n/a
UK£1.93
0%
9.1%UK£2.10UK£1.75n/a2
Feb ’24n/a
UK£1.93
0%
9.1%UK£2.10UK£1.75UK£1.362
Jan ’24n/a
UK£1.93
0%
9.1%UK£2.10UK£1.75UK£1.382
Dec ’23n/a
UK£1.93
0%
9.1%UK£2.10UK£1.75n/a2
Nov ’23n/a
UK£2.08
0%
8.4%UK£2.25UK£1.90n/a2

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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