ZOO Digital Group plc

AIM:ZOO Stock Report

Market Cap: UK£36.7m

ZOO Digital Group Valuation

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

Below Fair Value: ZOO (£0.38) is trading below our estimate of fair value (£1.96)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for ZOO. This is calculated by dividing ZOO's market cap by their current revenue.
What is ZOO's PS Ratio?
PS Ratio1x
SalesUS$46.78m
Market CapUS$46.24m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for ZOO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average5.2x
SMRT SmartSpace Software
5.1x12.8%UK£27.8m
ARB Argo Blockchain
1.2x32.1%UK£52.3m
BIRD Blackbird
14.1xn/aUK£23.2m
RM. RM
0.3xn/aUK£64.3m
ZOO ZOO Digital Group
1x17.8%UK£36.7m

Price-To-Sales vs Peers: ZOO is good value based on its Price-To-Sales Ratio (1x) compared to the peer average (5.2x).

Price to Sales Ratio vs Industry

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

11 CompaniesPrice / SalesEstimated GrowthMarket Cap
RM. RM
0.3xn/aUS$81.01m
SWG Shearwater Group
0.4xn/aUS$10.80m
MBO MobilityOne
0.01xn/aUS$3.01m
CCS Crossword Cybersecurity
0.5xn/aUS$2.46m
ZOO 1.0xIndustry Avg. 2.4xNo. of Companies13PS0246810+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ZOO is good value based on its Price-To-Sales Ratio (1x) compared to the UK Software industry average (2.4x).

Price to Sales Ratio vs Fair Ratio

What is ZOO'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.

ZOO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1x
Fair PS Ratio1.3x

Price-To-Sales vs Fair Ratio: ZOO is good value based on its Price-To-Sales Ratio (1x) compared to the estimated Fair Price-To-Sales Ratio (1.3x).

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 ZOO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.38
UK£0.65
+74.2%
22.2%UK£0.78UK£0.45n/a3
Nov ’25UK£0.42
UK£0.90
+115.1%
11.3%UK£1.03UK£0.78n/a3
Oct ’25UK£0.33
UK£0.90
+173.7%
11.3%UK£1.03UK£0.78n/a3
Sep ’25UK£0.46
UK£0.90
+98.5%
11.3%UK£1.03UK£0.78n/a3
Aug ’25UK£0.61
UK£0.90
+48.1%
11.3%UK£1.03UK£0.78n/a3
Jul ’25UK£0.64
UK£0.90
+42.3%
11.3%UK£1.03UK£0.78n/a3
Jun ’25UK£0.54
UK£0.90
+67.3%
11.3%UK£1.03UK£0.78n/a3
May ’25UK£0.42
UK£0.60
+42.0%
35.3%UK£0.90UK£0.41n/a3
Apr ’25UK£0.35
UK£0.60
+70.4%
35.3%UK£0.90UK£0.41n/a3
Mar ’25UK£0.23
UK£0.69
+198.6%
29.9%UK£0.90UK£0.41n/a3
Feb ’25UK£0.39
UK£0.69
+78.4%
29.9%UK£0.90UK£0.41n/a3
Jan ’25UK£0.66
UK£0.87
+33.3%
10.5%UK£0.97UK£0.75n/a3
Dec ’24UK£0.60
UK£0.87
+46.0%
10.5%UK£0.97UK£0.75n/a3
Nov ’24UK£0.44
UK£0.87
+98.5%
10.5%UK£0.97UK£0.75UK£0.423
Oct ’24UK£0.41
UK£0.87
+113.0%
10.5%UK£0.97UK£0.75UK£0.333
Sep ’24UK£0.67
UK£1.68
+153.1%
6.1%UK£1.80UK£1.55UK£0.463
Aug ’24UK£0.68
UK£1.68
+149.4%
6.1%UK£1.80UK£1.55UK£0.613
Jul ’24UK£1.25
UK£2.70
+116.9%
8.4%UK£3.00UK£2.45UK£0.643
Jun ’24UK£1.23
UK£2.70
+119.5%
8.4%UK£3.00UK£2.45UK£0.543
May ’24UK£1.60
UK£2.70
+68.8%
8.4%UK£3.00UK£2.45UK£0.423
Apr ’24UK£1.98
UK£2.70
+36.7%
8.4%UK£3.00UK£2.45UK£0.353
Mar ’24UK£2.00
UK£2.70
+35.0%
8.4%UK£3.00UK£2.45UK£0.233
Feb ’24UK£1.78
UK£2.46
+38.4%
7.3%UK£2.65UK£2.22UK£0.393
Jan ’24UK£1.78
UK£2.46
+38.0%
7.3%UK£2.65UK£2.22UK£0.663
Dec ’23UK£1.77
UK£2.36
+33.3%
5.9%UK£2.50UK£2.22UK£0.602
Nov ’23UK£1.75
UK£2.36
+35.2%
5.9%UK£2.50UK£2.22UK£0.442

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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