THG Plc

LSE:THG Stock Report

Market Cap: UK£671.9m

THG Valuation

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

Below Fair Value: THG (£0.43) is trading above our estimate of fair value (£0.04)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for THG. This is calculated by dividing THG's market cap by their current revenue.
What is THG's PS Ratio?
PS Ratio0.3x
SalesUK£2.01b
Market CapUK£671.95m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for THG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.3x
BME B&M European Value Retail
0.6x6.5%UK£3.5b
NXT NEXT
2x4.5%UK£11.6b
MOON Moonpig Group
2.5x7.6%UK£854.3m
LOOK Lookers
0.1x4.0%UK£503.2m
THG THG
0.3x4.2%UK£656.4m

Price-To-Sales vs Peers: THG is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (1.7x).

Price to Sales Ratio vs Industry

How does THG's PS Ratio compare vs other companies in the European Multiline Retail Industry?

0 CompaniesPrice / SalesEstimated GrowthMarket Cap
THG 0.3xIndustry Avg. 0.8xNo. of Companies3PS00.40.81.21.62+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: THG is good value based on its Price-To-Sales Ratio (0.3x) compared to the European Multiline Retail industry average (0.8x).

Price to Sales Ratio vs Fair Ratio

What is THG'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.

THG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ratio0.5x

Price-To-Sales vs Fair Ratio: THG is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (0.5x).

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 THG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.43
UK£0.85
+97.4%
28.6%UK£1.41UK£0.53n/a10
Nov ’25UK£0.47
UK£0.85
+81.6%
28.6%UK£1.41UK£0.53n/a10
Oct ’25UK£0.54
UK£0.92
+72.5%
31.4%UK£1.41UK£0.53n/a10
Sep ’25UK£0.59
UK£1.11
+86.0%
40.2%UK£2.20UK£0.53n/a10
Aug ’25UK£0.65
UK£1.10
+70.7%
40.9%UK£2.20UK£0.49n/a10
Jul ’25UK£0.64
UK£1.07
+67.2%
41.4%UK£2.20UK£0.48n/a11
Jun ’25UK£0.69
UK£1.07
+55.4%
41.4%UK£2.20UK£0.48n/a11
May ’25UK£0.62
UK£1.06
+69.9%
42.5%UK£2.20UK£0.48n/a11
Apr ’25UK£0.69
UK£1.05
+52.1%
42.6%UK£2.20UK£0.48n/a11
Mar ’25UK£0.63
UK£1.01
+61.2%
44.7%UK£2.20UK£0.48n/a10
Feb ’25UK£0.64
UK£0.97
+51.4%
47.2%UK£2.20UK£0.48n/a11
Jan ’25UK£0.85
UK£0.97
+13.5%
47.1%UK£2.20UK£0.48n/a11
Dec ’24UK£0.78
UK£0.95
+21.7%
49.6%UK£2.20UK£0.50n/a10
Nov ’24UK£0.69
UK£0.95
+38.0%
49.6%UK£2.20UK£0.50UK£0.4710
Oct ’24UK£0.70
UK£0.96
+37.5%
49.4%UK£2.20UK£0.50UK£0.5410
Sep ’24UK£0.99
UK£0.91
-8.2%
53.3%UK£2.20UK£0.50UK£0.5910
Aug ’24UK£1.02
UK£0.96
-5.8%
51.2%UK£2.20UK£0.50UK£0.6511
Jul ’24UK£0.81
UK£0.93
+13.9%
53.7%UK£2.20UK£0.35UK£0.6411
Jun ’24UK£0.61
UK£0.90
+48.1%
62.1%UK£2.20UK£0.35UK£0.699
May ’24UK£1.00
UK£0.89
-10.9%
67.8%UK£2.20UK£0.35UK£0.628
Apr ’24UK£0.68
UK£0.68
+0.7%
44.7%UK£1.50UK£0.35UK£0.6911
Mar ’24UK£0.60
UK£0.68
+14.1%
44.7%UK£1.50UK£0.35UK£0.6311
Feb ’24UK£0.58
UK£0.68
+16.3%
45.3%UK£1.50UK£0.35UK£0.6411
Jan ’24UK£0.44
UK£0.69
+58.1%
58.2%UK£1.90UK£0.35UK£0.8512
Dec ’23UK£0.68
UK£0.68
-0.8%
61.1%UK£1.90UK£0.35UK£0.7812
Nov ’23UK£0.59
UK£0.68
+14.0%
61.1%UK£1.90UK£0.35UK£0.6912

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.

Discover undervalued companies

Frasers Group

UK£3.3b

Frasers Group Plc, together with its subsidiaries, retails sports and leisure clothing, footwear, homeware, furniture, sports equipment and bicycles, accessories, and apparel through department stores, shops, and online in the United Kingdom, Europe, the United States, Asia, Oceania, and internationally.

FRAS

UK£7.50

7D

0.07%

1Y

-15.1%

Alibaba Group Holding

US$189.0b

Through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally.

AHLAD

US$80.10

7D

-4.0%

1Y

12.0%

Inchcape

UK£3.1b

Operates as an automotive distributor and retailer.

INCH

UK£7.60

7D

1.1%

1Y

17.0%