AO World plc

BATS-CHIXE:AOL Stock Report

Market Cap: UK£590.5m

AO World Valuation

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

Below Fair Value: AOL (£1.04) is trading below our estimate of fair value (£1.26)

Significantly Below Fair Value: AOL is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

AOL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA14x
PEG Ratio2.2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AOL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19x
CURY Currys
31.3x21.3%UK£843.9m
MOON Moonpig Group
25.1x19.2%UK£856.6m
LOOK Lookers
7.9x-1.8%UK£503.2m
WIX Wickes Group
11.7x12.6%UK£358.3m
AOL AO World
23.9x10.8%UK£590.5m

Price-To-Earnings vs Peers: AOL is expensive based on its Price-To-Earnings Ratio (23.9x) compared to the peer average (22.7x).

Price to Earnings Ratio vs Industry

How does AOL's PE Ratio compare vs other companies in the GB Specialty Retail Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.1%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.1%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: AOL is expensive based on its Price-To-Earnings Ratio (23.9x) compared to the UK Specialty Retail industry average (17.2x).

Price to Earnings Ratio vs Fair Ratio

What is AOL'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.

AOL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.9x
Fair PE Ratio13.5x

Price-To-Earnings vs Fair Ratio: AOL is expensive based on its Price-To-Earnings Ratio (23.9x) compared to the estimated Fair Price-To-Earnings Ratio (13.5x).

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 AOL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.04
UK£1.11
+7.0%
23.0%UK£1.40UK£0.75n/a4
Nov ’25UK£1.07
UK£1.11
+4.0%
23.0%UK£1.40UK£0.75n/a4
Oct ’25UK£1.09
UK£1.22
+11.2%
21.3%UK£1.50UK£0.75n/a6
Sep ’25UK£1.14
UK£1.21
+6.3%
19.8%UK£1.50UK£0.75n/a7
Aug ’25UK£1.16
UK£1.21
+5.0%
19.8%UK£1.50UK£0.75n/a7
Jul ’25UK£1.13
UK£1.19
+5.6%
19.6%UK£1.50UK£0.75n/a7
Jun ’25UK£1.11
UK£1.12
+0.6%
16.9%UK£1.30UK£0.75n/a6
May ’25UK£1.06
UK£1.08
+1.5%
17.2%UK£1.25UK£0.75n/a5
Apr ’25UK£1.01
UK£0.93
-7.1%
26.1%UK£1.25UK£0.52n/a5
Mar ’25UK£0.95
UK£0.89
-5.6%
22.5%UK£1.05UK£0.52n/a5
Feb ’25UK£0.88
UK£0.88
0%
23.1%UK£1.05UK£0.52n/a5
Jan ’25UK£0.98
UK£0.88
-9.6%
23.1%UK£1.05UK£0.52n/a5
Dec ’24UK£0.94
UK£0.88
-6.3%
23.1%UK£1.05UK£0.52n/a5
Nov ’24UK£0.87
UK£0.86
-0.3%
21.8%UK£1.00UK£0.52UK£1.075
Oct ’24UK£0.86
UK£0.84
-2.4%
21.8%UK£1.00UK£0.52UK£1.096
Sep ’24UK£0.93
UK£0.91
-1.7%
27.1%UK£1.35UK£0.52UK£1.147
Aug ’24UK£0.92
UK£0.91
-0.5%
27.1%UK£1.35UK£0.52UK£1.167
Jul ’24UK£0.79
UK£0.86
+7.9%
28.9%UK£1.35UK£0.52UK£1.137
Jun ’24UK£0.67
UK£0.72
+7.5%
25.4%UK£1.00UK£0.50UK£1.116
May ’24UK£0.78
UK£0.72
-7.5%
25.4%UK£1.00UK£0.50UK£1.066
Apr ’24UK£0.66
UK£0.71
+8.4%
24.9%UK£1.00UK£0.50UK£1.016
Mar ’24UK£0.67
UK£0.71
+6.6%
24.9%UK£1.00UK£0.50UK£0.956
Feb ’24UK£0.62
UK£0.70
+12.9%
22.6%UK£0.90UK£0.50UK£0.886
Jan ’24UK£0.52
UK£0.64
+23.7%
17.9%UK£0.80UK£0.50UK£0.986
Dec ’23UK£0.59
UK£0.64
+8.7%
17.9%UK£0.80UK£0.50UK£0.946
Nov ’23UK£0.48
UK£0.52
+6.7%
30.2%UK£0.70UK£0.31UK£0.877

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

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