Ground Rents Income Fund PLC

LSE:GRIO Stock Report

Market Cap: UK£20.6m

Ground Rents Income Fund Valuation

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

Below Fair Value: GRIO (£0.22) is trading above our estimate of fair value (£0.09)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for GRIO. This is calculated by dividing GRIO's market cap by their current revenue.
What is GRIO's PS Ratio?
PS Ratio3.5x
SalesUK£5.81m
Market CapUK£20.57m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for GRIO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.8x
AIRE Alternative Income REIT
7xn/aUK£55.2m
TOWN Town Centre Securities
1.7x-1.0%UK£55.5m
RLE Real Estate Investors
5x-32.7%UK£54.9m
SERE Schroder European Real Estate Investment Trust
5.3x5.2%UK£94.4m
GRIO Ground Rents Income Fund
3.5xn/aUK£20.6m

Price-To-Sales vs Peers: GRIO is good value based on its Price-To-Sales Ratio (3.5x) compared to the peer average (4.8x).

Price to Sales Ratio vs Industry

How does GRIO'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
GRIO 3.5xIndustry Avg. 8.2xNo. of Companies4PS048121620+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: GRIO is good value based on its Price-To-Sales Ratio (3.5x) compared to the European REITs industry average (8.2x).

Price to Sales Ratio vs Fair Ratio

What is GRIO'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.

GRIO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.5x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate GRIO'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?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Big Yellow Group

UK£2.2b

Big Yellow is the UK's brand leader in self storage.

BYG

UK£11.04

7D

-4.3%

1Y

0.9%

Immobiliare Grande Distribuzione SIIQ

€251.6m

Immobiliare Grande Distribuzione SIIQ S.p.A.

0STP

€2.25

7D

3.8%

1Y

2.7%

Care REIT

UK£359.3m

Impact Healthcare REIT plc acquires, renovates, extends and redevelops high quality healthcare real estate assets in the UK and lets these assets on long-term full repairing and insuring leases to high-quality established healthcare operators which offer good quality care, under leases which provide the Company with attractive levels of rent cover.

CRT

UK£0.87

7D

5.7%

1Y

1.0%