GB Group plc

AIM:GBG Stock Report

Market Cap: UK£848.6m

GB Group Valuation

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

Below Fair Value: GBG (£3.41) is trading below our estimate of fair value (£4.78)

Significantly Below Fair Value: GBG is trading below fair value by more than 20%.

Key Valuation Metric

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

Key metric: As GBG is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for GBG. This is calculated by dividing GBG's market cap by their current revenue.
What is GBG's PS Ratio?
PS Ratio3.1x
SalesUK£277.33m
Market CapUK£848.63m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for GBG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average6.9x
ALFA Alfa Financial Software Holdings
6.8x9.6%UK£692.1m
BYIT Bytes Technology Group
5.3x11.0%UK£1.1b
FDP FD Technologies
2x-11.6%UK£504.6m
CER Cerillion
13.7x11.0%UK£562.7m
GBG GB Group
3.1x6.1%UK£860.7m

Price-To-Sales vs Peers: GBG is good value based on its Price-To-Sales Ratio (3.1x) compared to the peer average (6.9x).

Price to Sales Ratio vs Industry

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

10 CompaniesPrice / SalesEstimated GrowthMarket Cap
RM. RM
0.4xn/aUS$83.18m
SWG Shearwater Group
0.4xn/aUS$10.21m
MBO MobilityOne
0.01xn/aUS$3.02m
CCS Crossword Cybersecurity
0.5xn/aUS$2.46m
GBG 3.1xIndustry Avg. 2.6xNo. of Companies13PS0246810+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: GBG is expensive based on its Price-To-Sales Ratio (3.1x) compared to the UK Software industry average (2.6x).

Price to Sales Ratio vs Fair Ratio

What is GBG'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.

GBG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.1x
Fair PS Ratio3.8x

Price-To-Sales vs Fair Ratio: GBG is good value based on its Price-To-Sales Ratio (3.1x) compared to the estimated Fair Price-To-Sales Ratio (3.8x).

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 GBG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£3.41
UK£4.18
+22.4%
13.2%UK£5.50UK£3.50n/a9
Nov ’25UK£3.43
UK£4.18
+21.7%
13.2%UK£5.50UK£3.50n/a9
Oct ’25UK£3.12
UK£4.23
+35.4%
13.4%UK£5.50UK£3.50n/a8
Sep ’25UK£3.44
UK£4.23
+23.0%
13.4%UK£5.50UK£3.50n/a8
Aug ’25UK£3.47
UK£4.23
+21.7%
13.4%UK£5.50UK£3.50n/a8
Jul ’25UK£3.37
UK£4.23
+25.4%
13.4%UK£5.50UK£3.50n/a8
Jun ’25UK£3.45
UK£3.97
+15.1%
16.4%UK£5.50UK£3.00n/a9
May ’25UK£2.94
UK£3.89
+32.2%
18.4%UK£5.50UK£3.00n/a9
Apr ’25UK£2.72
UK£3.87
+41.9%
18.8%UK£5.50UK£3.00n/a9
Mar ’25UK£2.87
UK£3.87
+34.8%
18.8%UK£5.50UK£3.00n/a9
Feb ’25UK£2.84
UK£3.87
+36.2%
18.8%UK£5.50UK£3.00n/a9
Jan ’25UK£2.74
UK£3.82
+39.5%
20.1%UK£5.50UK£3.00n/a9
Dec ’24UK£2.32
UK£4.03
+73.5%
23.0%UK£5.50UK£3.00n/a9
Nov ’24UK£2.40
UK£4.17
+73.8%
21.5%UK£5.50UK£3.00UK£3.439
Oct ’24UK£2.15
UK£4.21
+95.5%
20.6%UK£5.50UK£3.00UK£3.129
Sep ’24UK£2.24
UK£4.24
+88.9%
19.5%UK£5.50UK£3.00UK£3.4410
Aug ’24UK£2.53
UK£4.24
+67.7%
19.5%UK£5.50UK£3.00UK£3.4710
Jul ’24UK£2.29
UK£4.23
+84.5%
20.2%UK£5.50UK£2.85UK£3.3710
Jun ’24UK£2.96
UK£4.50
+51.9%
18.6%UK£6.00UK£3.35UK£3.4511
May ’24UK£3.26
UK£4.50
+38.1%
19.5%UK£6.00UK£3.35UK£2.9410
Apr ’24UK£3.00
UK£4.54
+51.3%
18.7%UK£6.00UK£3.35UK£2.7210
Mar ’24UK£3.41
UK£4.75
+39.3%
17.7%UK£6.00UK£3.35UK£2.8711
Feb ’24UK£3.49
UK£5.14
+47.5%
20.8%UK£7.20UK£3.50UK£2.8411
Jan ’24UK£3.15
UK£5.89
+87.2%
30.5%UK£10.75UK£3.75UK£2.7411
Dec ’23UK£3.42
UK£5.99
+75.3%
30.0%UK£10.75UK£3.75UK£2.3211
Nov ’23UK£3.80
UK£7.35
+93.5%
26.5%UK£10.75UK£4.00UK£2.4010

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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