Keywords Studios plc

AIM:KWS Stock Report

Market Cap: UK£2.0b

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This company may still be operating, however this listing is no longer active. Find out why through their latest events.

Keywords Studios Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Discounted Cash Flow
Simply Wall St
UK£30.22
Fair Value
19.1% undervalued intrinsic discount
8
Number of Analysts

Below Fair Value: KWS (£24.46) is trading below our estimate of fair value (£30.22)

Significantly Below Fair Value: KWS 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 KWS?

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

The above table shows the Price to Sales ratio for KWS. This is calculated by dividing KWS's market cap by their current revenue.
What is KWS's PS Ratio?
PS Ratio2.9x
Sales€807.60m
Market Cap€2.37b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for KWS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.8x
CCC Computacenter
0.3x5.1%UK£2.2b
KNOS Kainos Group
2.7x5.7%UK£988.8m
SCT Softcat
3.1x10.2%UK£3.0b
NCC NCC Group
1.3x3.4%UK£419.1m
KWS Keywords Studios
2.9x10.2%UK£2.0b

Price-To-Sales vs Peers: KWS is expensive based on its Price-To-Sales Ratio (2.9x) compared to the peer average (2x).

Price to Sales Ratio vs Industry

How does KWS's PS Ratio compare vs other companies in the GB IT Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
NVIQ Noventiq Holdings
0.1xn/aUS$228.10m
TIA Tialis Essential IT
0.2xn/aUS$6.37m
CLCO CloudCoCo Group
0.04xn/aUS$1.38m
No more companies available in this PS range
KWS 2.9xIndustry Avg. 1.5xNo. of Companies5PS01.22.43.64.86+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: KWS is expensive based on its Price-To-Sales Ratio (2.9x) compared to the UK IT industry average (1.5x).

Price to Sales Ratio vs Fair Ratio

What is KWS'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.

KWS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.9x
Fair PS Ratio3x

Price-To-Sales vs Fair Ratio: KWS is good value based on its Price-To-Sales Ratio (2.9x) compared to the estimated Fair Price-To-Sales Ratio (3x).

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 KWS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
UK£23.90
0%
15.8%UK£31.74UK£17.87n/a8
Jan ’26n/a
UK£23.90
0%
15.8%UK£31.74UK£17.87n/a8
Dec ’25n/a
UK£23.90
0%
15.8%UK£31.74UK£17.87n/a8
Nov ’25n/a
UK£23.90
0%
15.8%UK£31.74UK£17.87n/a8
Oct ’25UK£24.34
UK£23.90
-1.8%
15.8%UK£31.74UK£17.87n/a8
Sep ’25UK£24.26
UK£23.90
-1.5%
15.8%UK£31.74UK£17.87n/a8
Aug ’25UK£23.84
UK£23.81
-0.1%
14.8%UK£31.53UK£17.76n/a9
Jul ’25UK£23.08
UK£22.96
-0.5%
16.4%UK£31.75UK£17.88n/a10
Jun ’25UK£22.34
UK£22.51
+0.8%
20.7%UK£32.99UK£16.19n/a12
May ’25UK£11.59
UK£22.57
+94.7%
20.8%UK£33.02UK£16.28n/a12
Apr ’25UK£13.02
UK£22.17
+70.3%
23.2%UK£32.96UK£13.68n/a12
Mar ’25UK£14.68
UK£22.86
+55.7%
20.5%UK£32.89UK£16.18n/a11
Feb ’25UK£16.78
UK£23.12
+37.8%
19.5%UK£32.94UK£16.25n/a12
Jan ’25UK£16.62
UK£23.87
+43.6%
19.3%UK£33.14UK£16.54n/a11
Dec ’24UK£13.73
UK£25.49
+85.6%
20.6%UK£33.88UK£16.51n/a13
Nov ’24UK£13.02
UK£25.60
+96.7%
19.5%UK£33.81UK£18.14n/a13
Oct ’24UK£15.47
UK£25.07
+62.1%
20.7%UK£33.79UK£18.12UK£24.3414
Sep ’24UK£14.99
UK£26.94
+79.7%
19.8%UK£34.47UK£17.97UK£24.2614
Aug ’24UK£15.80
UK£28.21
+78.5%
16.2%UK£34.45UK£19.99UK£23.8413
Jul ’24UK£18.10
UK£31.38
+73.4%
11.9%UK£35.98UK£21.09UK£23.0814
Jun ’24UK£19.47
UK£32.08
+64.8%
7.6%UK£35.67UK£26.75UK£22.3414
May ’24UK£27.00
UK£32.42
+20.1%
7.7%UK£35.85UK£26.89UK£11.5914
Apr ’24UK£27.58
UK£32.43
+17.6%
7.8%UK£35.91UK£26.93UK£13.0214
Mar ’24UK£29.36
UK£32.80
+11.7%
8.1%UK£36.09UK£27.40UK£14.6813
Feb ’24UK£28.34
UK£32.58
+15.0%
7.7%UK£36.24UK£27.54UK£16.7812
Jan ’24UK£27.24
UK£31.93
+17.2%
6.5%UK£34.62UK£28.32UK£16.6213
Analyst Price Target
Consensus Narrative from 8 Analysts
UK£23.90
Fair Value
2.3% overvalued intrinsic discount
8
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/10/23 08:48
End of Day Share Price 2024/10/23 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

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 here.

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 .

Analyst Sources

Keywords Studios plc is covered by 13 analysts. 6 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Alexander deGrooteArden Partners Plc.
Robert ChantryBerenberg
null nullCavendish