Topps Tiles Plc

LSE:TPT Stock Report

Market Cap: UK£80.0m

Topps Tiles Valuation

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

Below Fair Value: TPT (£0.41) is trading above our estimate of fair value (£0.17)

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

Key Valuation Metric

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

Key metric: As TPT is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for TPT. This is calculated by dividing TPT's market cap by their current revenue.
What is TPT's PS Ratio?
PS Ratio0.3x
SalesUK£255.18m
Market CapUK£80.04m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for TPT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.5x
MRK Marks Electrical Group
0.4x8.0%UK£52.9m
VIC Victorian Plumbing Group
1.3x9.8%UK£361.5m
WIX Wickes Group
0.2x3.7%UK£359.2m
CMO CMO Group
0.2x3.9%UK£10.3m
TPT Topps Tiles
0.3x7.9%UK£80.0m

Price-To-Sales vs Peers: TPT is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (0.5x).

Price to Sales Ratio vs Industry

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

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
VTU Vertu Motors
0.04x5.8%US$252.18m
WRKS TheWorks.co.uk
0.05xn/aUS$18.56m
CFYN Caffyns
0.05xn/aUS$15.47m
MMAG musicMagpie
0.07xn/aUS$10.94m
TPT 0.3xIndustry Avg. 0.3xNo. of Companies7PS00.40.81.21.62+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: TPT is good value based on its Price-To-Sales Ratio (0.3x) compared to the UK Specialty Retail industry average (0.3x).

Price to Sales Ratio vs Fair Ratio

What is TPT'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.

TPT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ratio0.4x

Price-To-Sales vs Fair Ratio: TPT is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).

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 TPT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.41
UK£0.62
+53.0%
23.2%UK£0.75UK£0.42n/a3
Nov ’25UK£0.45
UK£0.62
+39.9%
23.2%UK£0.75UK£0.42n/a3
Oct ’25UK£0.44
UK£0.62
+41.7%
23.2%UK£0.75UK£0.42n/a3
Sep ’25UK£0.46
UK£0.62
+35.4%
23.2%UK£0.75UK£0.42n/a3
Aug ’25UK£0.45
UK£0.62
+39.0%
23.2%UK£0.75UK£0.42n/a3
Jul ’25UK£0.41
UK£0.72
+78.8%
3.3%UK£0.75UK£0.70n/a2
Jun ’25UK£0.43
UK£0.72
+66.8%
3.3%UK£0.75UK£0.70n/a2
May ’25UK£0.43
UK£0.62
+42.3%
25.0%UK£0.75UK£0.40n/a3
Apr ’25UK£0.45
UK£0.80
+77.0%
12.5%UK£0.90UK£0.70n/a2
Mar ’25UK£0.43
UK£0.80
+85.6%
12.5%UK£0.90UK£0.70n/a2
Feb ’25UK£0.45
UK£0.80
+77.0%
12.5%UK£0.90UK£0.70n/a2
Jan ’25UK£0.50
UK£0.80
+60.0%
12.5%UK£0.90UK£0.70n/a2
Dec ’24UK£0.46
UK£0.80
+72.6%
12.5%UK£0.90UK£0.70n/a2
Nov ’24UK£0.47
UK£0.85
+78.9%
17.6%UK£1.00UK£0.70UK£0.452
Oct ’24UK£0.48
UK£0.85
+75.6%
17.6%UK£1.00UK£0.70UK£0.442
Sep ’24UK£0.50
UK£0.85
+70.0%
17.6%UK£1.00UK£0.70UK£0.462
Aug ’24UK£0.51
UK£0.85
+66.7%
17.6%UK£1.00UK£0.70UK£0.452
Jul ’24UK£0.48
UK£0.85
+77.1%
17.6%UK£1.00UK£0.70UK£0.412
Jun ’24UK£0.54
UK£0.85
+58.6%
17.6%UK£1.00UK£0.70UK£0.432
May ’24UK£0.51
UK£0.85
+66.7%
17.6%UK£1.00UK£0.70UK£0.432
Apr ’24UK£0.46
UK£0.85
+86.4%
17.6%UK£1.00UK£0.70UK£0.452
Mar ’24UK£0.51
UK£0.85
+66.7%
17.6%UK£1.00UK£0.70UK£0.432
Feb ’24UK£0.49
UK£0.85
+73.8%
17.6%UK£1.00UK£0.70UK£0.452
Jan ’24UK£0.45
UK£0.80
+77.8%
25.0%UK£1.00UK£0.60UK£0.502
Dec ’23UK£0.42
UK£0.80
+88.7%
25.0%UK£1.00UK£0.60UK£0.462
Nov ’23UK£0.39
UK£0.80
+105.1%
25.0%UK£1.00UK£0.60UK£0.472

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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