dotdigital Group Plc

AIM:DOTD Stock Report

Market Cap: UK£286.0m

dotdigital Group Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: DOTD (£0.93) is trading below our estimate of fair value (£1.01)

Significantly Below Fair Value: DOTD 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 DOTD?

Key metric: As DOTD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DOTD. This is calculated by dividing DOTD's market cap by their current earnings.
What is DOTD's PE Ratio?
PE Ratio25.8x
EarningsUK£11.07m
Market CapUK£285.98m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for DOTD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average42.5x
IDOX IDOX
52.6x24.9%UK£289.1m
ACSO accesso Technology Group
35.7x13.5%UK£241.9m
APTD Aptitude Software Group
38.1x17.4%UK£185.2m
TRCS Tracsis
43.7x40.6%UK£204.6m
DOTD dotdigital Group
25.8x10.5%UK£286.0m

Price-To-Earnings vs Peers: DOTD is good value based on its Price-To-Earnings Ratio (25.8x) compared to the peer average (42.5x).

Price to Earnings Ratio vs Industry

How does DOTD's PE Ratio compare vs other companies in the GB Software Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
SORT Sorted Group Holdings
3.1xn/aUS$5.54m
No more companies available in this PE range
DOTD 25.8xIndustry Avg. 35.7xNo. of Companies5PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DOTD is good value based on its Price-To-Earnings Ratio (25.8x) compared to the UK Software industry average (35.3x).

Price to Earnings Ratio vs Fair Ratio

What is DOTD'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.

DOTD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.8x
Fair PE Ratio30.2x

Price-To-Earnings vs Fair Ratio: DOTD is good value based on its Price-To-Earnings Ratio (25.8x) compared to the estimated Fair Price-To-Earnings Ratio (30.2x).

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 DOTD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.93
UK£1.28
+37.2%
12.6%UK£1.50UK£1.10n/a6
Nov ’25UK£0.87
UK£1.26
+45.5%
12.4%UK£1.50UK£1.10n/a7
Oct ’25UK£0.88
UK£1.26
+42.5%
12.4%UK£1.50UK£1.10n/a7
Sep ’25UK£0.92
UK£1.26
+37.6%
12.4%UK£1.50UK£1.10n/a7
Aug ’25UK£0.94
UK£1.26
+33.5%
12.4%UK£1.50UK£1.10n/a7
Jul ’25UK£0.96
UK£1.25
+30.5%
12.7%UK£1.50UK£1.10n/a7
Jun ’25UK£0.96
UK£1.25
+31.1%
12.7%UK£1.50UK£1.10n/a7
May ’25UK£0.94
UK£1.25
+33.7%
12.7%UK£1.50UK£1.10n/a7
Apr ’25UK£0.86
UK£1.25
+45.7%
12.7%UK£1.50UK£1.10n/a7
Mar ’25UK£0.97
UK£1.23
+27.7%
12.7%UK£1.50UK£1.10n/a6
Feb ’25UK£0.98
UK£1.23
+25.7%
12.7%UK£1.50UK£1.10n/a6
Jan ’25UK£0.99
UK£1.23
+23.9%
13.3%UK£1.50UK£1.10n/a6
Dec ’24UK£0.90
UK£1.23
+35.5%
13.3%UK£1.50UK£1.10n/a6
Nov ’24UK£0.75
UK£1.24
+65.6%
12.4%UK£1.50UK£1.10UK£0.876
Oct ’24UK£0.78
UK£1.24
+60.0%
12.4%UK£1.50UK£1.10UK£0.886
Sep ’24UK£0.85
UK£1.24
+46.1%
12.4%UK£1.50UK£1.10UK£0.926
Aug ’24UK£0.94
UK£1.24
+32.4%
12.4%UK£1.50UK£1.10UK£0.946
Jul ’24UK£0.85
UK£1.23
+45.8%
12.7%UK£1.50UK£1.10UK£0.966
Jun ’24UK£0.94
UK£1.20
+27.7%
13.9%UK£1.50UK£1.00UK£0.967
May ’24UK£0.89
UK£1.18
+32.0%
14.4%UK£1.50UK£1.00UK£0.948
Apr ’24UK£0.95
UK£1.18
+23.3%
14.4%UK£1.50UK£1.00UK£0.868
Mar ’24UK£0.91
UK£1.14
+26.4%
17.5%UK£1.50UK£0.85UK£0.978
Feb ’24UK£0.95
UK£1.14
+19.9%
17.5%UK£1.50UK£0.85UK£0.988
Jan ’24UK£0.83
UK£1.14
+38.0%
18.8%UK£1.50UK£0.85UK£0.997
Dec ’23UK£0.96
UK£1.14
+19.4%
18.8%UK£1.50UK£0.85UK£0.907
Nov ’23UK£0.74
UK£1.18
+60.1%
24.6%UK£1.70UK£0.80UK£0.757

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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