THG Plc

LSE:THG Stock Report

Market Cap: UK£685.4m

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 (£0.45) 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£685.37m

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
0.6x6.4%UK£3.6b
NXT NEXT
1.9x4.6%UK£11.3b
MOON Moonpig Group
2.1x7.8%UK£724.7m
AO. AO World
0.6x6.0%UK£599.6m
THG THG
0.3x3.5%UK£685.4m

Price-To-Sales vs Peers: THG is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (1.3x).

Price to Sales Ratio vs Industry

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

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
THG 0.3xIndustry Avg. 0.8xNo. of Companies4PS00.61.21.82.43+
4 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£0.45
UK£0.74
+65.4%
22.7%UK£1.00UK£0.49n/a7
Dec ’25UK£0.48
UK£0.74
+55.3%
22.7%UK£1.00UK£0.49n/a7
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£0.50UK£0.4810
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

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/27 01:37
End of Day Share Price 2024/12/27 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

THG Plc is covered by 21 analysts. 7 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Andrew RossBarclays
Patrick FolanBarclays
Alexander Richard OkinesBNP Paribas Exane