Microlise Group plc

AIM:SAAS Stock Report

Market Cap: UK£124.4m

Microlise Group Valuation

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

Below Fair Value: SAAS (£1.09) is trading below our estimate of fair value (£1.6)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for SAAS. This is calculated by dividing SAAS's market cap by their current revenue.
What is SAAS's PS Ratio?
PS Ratio1.6x
SalesUK£76.95m
Market CapUK£124.35m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SAAS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.2x
SPE Sopheon
3.5x7.7%UK£106.6m
ELCO Eleco
3.7x14.3%UK£112.8m
IGP Intercede Group
5.2x-6.3%UK£104.6m
NET Netcall
4.2x15.5%UK£164.3m
SAAS Microlise Group
1.6x8.6%UK£124.4m

Price-To-Sales vs Peers: SAAS is good value based on its Price-To-Sales Ratio (1.6x) compared to the peer average (4.2x).

Price to Sales Ratio vs Industry

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

11 CompaniesPrice / SalesEstimated GrowthMarket Cap
RM. RM
0.3xn/aUS$81.07m
SWG Shearwater Group
0.4xn/aUS$10.70m
MBO MobilityOne
0.01xn/aUS$3.02m
CCS Crossword Cybersecurity
0.5xn/aUS$2.46m
SAAS 1.6xIndustry Avg. 2.4xNo. of Companies13PS0246810+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SAAS is good value based on its Price-To-Sales Ratio (1.6x) compared to the UK Software industry average (2.6x).

Price to Sales Ratio vs Fair Ratio

What is SAAS'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.

SAAS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.6x
Fair PS Ratio2.1x

Price-To-Sales vs Fair Ratio: SAAS is good value based on its Price-To-Sales Ratio (1.6x) compared to the estimated Fair Price-To-Sales Ratio (2.1x).

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 SAAS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.09
UK£2.45
+124.8%
14.3%UK£2.80UK£2.10n/a2
Nov ’25UK£1.14
UK£2.45
+114.9%
14.3%UK£2.80UK£2.10n/a2
Oct ’25UK£1.18
UK£2.45
+108.5%
14.3%UK£2.80UK£2.10n/a2
Sep ’25UK£1.28
UK£2.45
+92.2%
14.3%UK£2.80UK£2.10n/a2
Aug ’25UK£1.43
UK£2.45
+71.9%
14.3%UK£2.80UK£2.10n/a2
Jul ’25UK£1.39
UK£2.45
+76.9%
14.3%UK£2.80UK£2.10n/a2
Jun ’25UK£1.36
UK£2.45
+80.1%
14.3%UK£2.80UK£2.10n/a2
May ’25UK£1.59
UK£2.45
+54.6%
14.3%UK£2.80UK£2.10n/a2
Apr ’25UK£1.40
UK£2.25
+60.7%
24.4%UK£2.80UK£1.70n/a2
Mar ’25UK£1.24
UK£2.25
+81.5%
24.4%UK£2.80UK£1.70n/a2
Feb ’25UK£1.25
UK£2.25
+80.0%
24.4%UK£2.80UK£1.70n/a2
Oct ’24UK£1.15
UK£2.68
+132.6%
4.7%UK£2.80UK£2.55UK£1.182
Sep ’24UK£1.18
UK£2.68
+127.7%
4.7%UK£2.80UK£2.55UK£1.282
Aug ’24UK£1.25
UK£2.68
+114.0%
4.7%UK£2.80UK£2.55UK£1.432
Jul ’24UK£1.33
UK£2.68
+101.9%
4.7%UK£2.80UK£2.55UK£1.392
Jun ’24UK£1.23
UK£2.68
+118.4%
4.7%UK£2.80UK£2.55UK£1.362
May ’24UK£1.28
UK£2.68
+109.8%
4.7%UK£2.80UK£2.55UK£1.592
Apr ’24UK£1.58
UK£2.68
+69.8%
4.7%UK£2.80UK£2.55UK£1.402
Mar ’24UK£1.43
UK£2.68
+87.7%
4.7%UK£2.80UK£2.55UK£1.242
Feb ’24UK£1.25
UK£2.68
+114.0%
4.7%UK£2.80UK£2.55UK£1.252
Jan ’24UK£1.33
UK£2.68
+101.9%
4.7%UK£2.80UK£2.55UK£1.022
Dec ’23UK£1.68
UK£2.68
+59.7%
4.7%UK£2.80UK£2.55UK£0.972
Nov ’23UK£1.68
UK£2.68
+59.7%
4.7%UK£2.80UK£2.55UK£1.002

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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