Life Science REIT plc

LSE:LABS Stock Report

Market Cap: UK£134.4m

Life Science REIT Valuation

Is LABS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: LABS (£0.38) is trading above our estimate of fair value (£0.09)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for LABS. This is calculated by dividing LABS's market cap by their current revenue.
What is LABS's PS Ratio?
PS Ratio6.7x
SalesUK£20.12m
Market CapUK£134.40m

Price to Sales Ratio vs Peers

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

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

Price-To-Sales vs Peers: LABS is good value based on its Price-To-Sales Ratio (6.7x) compared to the peer average (7.2x).

Price to Sales Ratio vs Industry

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

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
LABS 6.7xIndustry Avg. 6.5xNo. of Companies6PS03.26.49.612.816+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: LABS is expensive based on its Price-To-Sales Ratio (6.7x) compared to the Global Health Care REITs industry average (6.5x).

Price to Sales Ratio vs Fair Ratio

What is LABS'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.

LABS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio6.7x
Fair PS Ratio4.5x

Price-To-Sales vs Fair Ratio: LABS is expensive based on its Price-To-Sales Ratio (6.7x) compared to the estimated Fair Price-To-Sales Ratio (4.5x).

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 LABS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.38
UK£0.52
+36.3%
16.8%UK£0.60UK£0.40n/a3
Nov ’25UK£0.42
UK£0.58
+36.7%
31.2%UK£0.80UK£0.36n/a3
Oct ’25UK£0.40
UK£0.58
+43.5%
31.2%UK£0.80UK£0.36n/a3
Sep ’25UK£0.34
UK£0.58
+69.6%
31.2%UK£0.80UK£0.36n/a3
Aug ’25UK£0.34
UK£0.61
+79.0%
23.9%UK£0.80UK£0.45n/a3
Jul ’25UK£0.34
UK£0.61
+79.0%
23.9%UK£0.80UK£0.45n/a3
Jun ’25UK£0.33
UK£0.61
+81.6%
23.9%UK£0.80UK£0.45n/a3
May ’25UK£0.39
UK£0.61
+55.6%
23.9%UK£0.80UK£0.45n/a3
Apr ’25UK£0.39
UK£0.61
+54.4%
23.9%UK£0.80UK£0.45n/a3
Mar ’25UK£0.44
UK£0.83
+88.2%
6.0%UK£0.90UK£0.79n/a3
Feb ’25UK£0.56
UK£0.83
+47.7%
6.0%UK£0.90UK£0.79n/a3
Jan ’25UK£0.63
UK£0.85
+34.5%
5.3%UK£0.90UK£0.79n/a3
Dec ’24UK£0.63
UK£0.85
+34.5%
5.3%UK£0.90UK£0.79n/a3
Nov ’24UK£0.61
UK£0.88
+44.3%
2.3%UK£0.90UK£0.86UK£0.422
Oct ’24UK£0.70
UK£0.88
+26.4%
2.3%UK£0.90UK£0.86UK£0.402
Sep ’24UK£0.64
UK£0.88
+36.6%
2.3%UK£0.90UK£0.86UK£0.342
Aug ’24UK£0.62
UK£0.88
+41.9%
2.3%UK£0.90UK£0.86UK£0.342
Jul ’24UK£0.68
UK£0.88
+29.4%
2.3%UK£0.90UK£0.86UK£0.342
Jun ’24UK£0.74
UK£1.00
+35.1%
14.0%UK£1.14UK£0.86UK£0.332
May ’24UK£0.70
UK£1.00
+43.7%
14.0%UK£1.14UK£0.86UK£0.392

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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