Corero Network Security plc

AIM:CNS Stock Report

Market Cap: UK£110.1m

Corero Network Security Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: CNS (£0.22) is trading above our estimate of fair value (£0.21)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for CNS. This is calculated by dividing CNS's market cap by their current revenue.
What is CNS's PS Ratio?
PS Ratio5.8x
SalesUS$23.99m
Market CapUS$138.70m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for CNS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.7x
BLTG Blancco Technology Group
3.9x9.7%UK£173.0m
GETB GetBusy
1.4x7.4%UK£30.2m
KBT K3 Business Technology Group
0.7xn/aUK£27.5m
CRTA Cirata
4.8x51.3%UK£27.4m
CNS Corero Network Security
5.8x12.2%UK£110.1m

Price-To-Sales vs Peers: CNS is expensive based on its Price-To-Sales Ratio (5.8x) compared to the peer average (2.3x).

Price to Sales Ratio vs Industry

How does CNS's PS Ratio compare vs other companies in the GB Software Industry?

11 CompaniesPrice / SalesEstimated GrowthMarket Cap
RM. RM
0.3xn/aUS$81.01m
SWG Shearwater Group
0.4xn/aUS$10.80m
MBO MobilityOne
0.01xn/aUS$3.01m
CCS Crossword Cybersecurity
0.5xn/aUS$2.46m
CNS 5.8xIndustry Avg. 2.4xNo. of Companies13PS0246810+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: CNS is expensive based on its Price-To-Sales Ratio (5.8x) compared to the UK Software industry average (2.4x).

Price to Sales Ratio vs Fair Ratio

What is CNS'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.

CNS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio5.8x
Fair PS Ratio3.6x

Price-To-Sales vs Fair Ratio: CNS is expensive based on its Price-To-Sales Ratio (5.8x) compared to the estimated Fair Price-To-Sales Ratio (3.6x).

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 CNS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.21
UK£0.18
-15.9%
23.4%UK£0.23UK£0.13n/a3
Nov ’25UK£0.24
UK£0.18
-24.7%
23.4%UK£0.23UK£0.13n/a3
Oct ’25UK£0.19
UK£0.18
-6.1%
23.4%UK£0.23UK£0.13n/a3
Sep ’25UK£0.19
UK£0.19
-3.7%
22.0%UK£0.24UK£0.14n/a3
Aug ’25UK£0.19
UK£0.19
-3.7%
22.0%UK£0.24UK£0.14n/a3
Jul ’25UK£0.15
UK£0.15
+1.7%
18.3%UK£0.19UK£0.12n/a3
Jun ’25UK£0.14
UK£0.15
+11.1%
18.3%UK£0.19UK£0.12n/a3
May ’25UK£0.12
UK£0.13
+10.8%
5.1%UK£0.14UK£0.13n/a2
Apr ’25UK£0.09
UK£0.13
+47.1%
5.7%UK£0.14UK£0.12n/a2
Mar ’25UK£0.085
UK£0.12
+45.8%
12.9%UK£0.14UK£0.11n/a2
Feb ’25UK£0.083
UK£0.12
+49.9%
13.1%UK£0.14UK£0.11n/a2
Jan ’25UK£0.083
UK£0.13
+52.9%
11.0%UK£0.14UK£0.11n/a2
Dec ’24UK£0.087
UK£0.13
+44.2%
11.0%UK£0.14UK£0.11n/a2
Nov ’24UK£0.097
UK£0.13
+30.7%
11.0%UK£0.14UK£0.11UK£0.242
Oct ’24UK£0.07
UK£0.13
+78.6%
11.6%UK£0.14UK£0.11UK£0.192
Aug ’24UK£0.068
UK£0.095
+40.3%
5.3%UK£0.10UK£0.09UK£0.192
Jul ’24UK£0.058
UK£0.098
+69.6%
2.6%UK£0.10UK£0.095UK£0.152
Jun ’24UK£0.063
UK£0.098
+56.0%
2.6%UK£0.10UK£0.095UK£0.142
May ’24UK£0.068
UK£0.098
+44.5%
2.6%UK£0.10UK£0.095UK£0.122
Jan ’24UK£0.092
UK£0.17
+83.6%
11.6%UK£0.19UK£0.15UK£0.0832
Dec ’23UK£0.10
UK£0.17
+61.8%
11.6%UK£0.19UK£0.15UK£0.0872

Analyst Forecast: Target price is lower than the current share price.

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