Eleco plc

AIM:ELCO Stock Report

Market Cap: UK£98.2m

Eleco Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

What is the Fair Price of ELCO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: ELCO (£1.18) is trading above our estimate of future cash flow value (£1.17)

Significantly Below Future Cash Flow Value: ELCO is trading above our estimate of future cash flow value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ELCO. This is calculated by dividing ELCO's market cap by their current earnings.
What is ELCO's PE Ratio?
PE Ratio74.6x
EarningsUK£1.32m
Market CapUK£98.21m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ELCO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average36.2x
QTX Quartix Technologies
16.7x12.37%UK£106.6m
TRCS Tracsis
100.2x74.52%UK£98.3m
ACSO accesso Technology Group
12.4x-5.87%UK£102.0m
DOTD dotdigital Group
15.3x20.07%UK£141.2m
ELCO Eleco
74.6x50.18%UK£98.2m

Price-To-Earnings vs Peers: ELCO is expensive based on its Price-To-Earnings Ratio (74.6x) compared to the peer average (36.2x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
MODE R8 Capital Investments
0.7xn/aUS$1.43m
No more companies available in this PE range
ELCO 74.6xIndustry Avg. 21.7xNo. of Companies7PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ELCO is expensive based on its Price-To-Earnings Ratio (74.6x) compared to the European Software industry average (21.7x).

Price to Earnings Ratio vs Fair Ratio

What is ELCO'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.

ELCO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio74.6x
Fair PE Ratio42x

Price-To-Earnings vs Fair Ratio: ELCO is expensive based on its Price-To-Earnings Ratio (74.6x) compared to the estimated Fair Price-To-Earnings Ratio (42x).

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 ELCO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.18
UK£2.18
+85.03%
10.30%UK£2.50UK£2.00n/a3
Jun ’27UK£1.30
UK£2.18
+67.95%
10.30%UK£2.50UK£2.00n/a3
May ’27UK£1.21
UK£2.18
+81.19%
10.30%UK£2.50UK£2.00n/a3
Apr ’27UK£1.08
UK£2.15
+100.31%
11.41%UK£2.50UK£1.96n/a3
Mar ’27UK£1.44
UK£2.15
+49.54%
11.41%UK£2.50UK£1.96n/a3
Feb ’27UK£1.48
UK£2.15
+45.50%
11.41%UK£2.50UK£1.96n/a3
Jan ’27UK£1.26
UK£2.09
+65.61%
14.77%UK£2.50UK£1.76n/a3
Dec ’26UK£1.33
UK£2.09
+56.89%
14.77%UK£2.50UK£1.76n/a3
Nov ’26UK£1.52
UK£2.09
+37.28%
14.77%UK£2.50UK£1.76n/a3
Oct ’26UK£1.49
UK£2.09
+40.52%
14.77%UK£2.50UK£1.76n/a3
Sep ’26UK£1.64
UK£1.85
+13.01%
5.66%UK£2.00UK£1.76n/a3
Aug ’26UK£1.73
UK£1.85
+7.13%
5.66%UK£2.00UK£1.76n/a3
Jul ’26UK£1.63
UK£1.85
+14.05%
5.66%UK£2.00UK£1.76UK£1.183
Jun ’26UK£1.58
UK£1.85
+17.67%
5.66%UK£2.00UK£1.76UK£1.303
May ’26UK£1.33
UK£1.90
+43.40%
5.26%UK£2.00UK£1.80UK£1.212
Apr ’26UK£1.20
UK£1.90
+58.33%
5.26%UK£2.00UK£1.80UK£1.082
Mar ’26UK£1.42
UK£1.90
+34.28%
5.26%UK£2.00UK£1.80UK£1.442
Feb ’26UK£1.45
UK£1.90
+31.03%
5.26%UK£2.00UK£1.80UK£1.482
Jan ’26UK£1.48
UK£1.83
+23.73%
9.59%UK£2.00UK£1.65UK£1.262
Dec ’25UK£1.39
UK£1.83
+31.29%
9.59%UK£2.00UK£1.65UK£1.332
Nov ’25UK£1.30
UK£1.83
+40.38%
9.59%UK£2.00UK£1.65UK£1.522
Oct ’25UK£1.34
UK£1.83
+36.19%
9.59%UK£2.00UK£1.65UK£1.492
Aug ’25UK£1.35
UK£1.35
0%
18.52%UK£1.60UK£1.10UK£1.732
Jul ’25UK£1.10
UK£1.35
+23.29%
18.52%UK£1.60UK£1.10UK£1.632
UK£2.18
Fair Value
46.0% undervalued intrinsic discount
3
Number of Analysts

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/07/06 02:37
End of Day Share Price 2026/07/06 00:00
Earnings2025/12/31
Annual Earnings2025/12/31

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.

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 Github.

Analyst Sources

Eleco plc is covered by 2 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Tom LikeCanaccord Genuity
Michael HillCavendish