Bytes Technology Group plc

BATS-CHIXE:BYITL Stock Report

Market Cap: UK£1.1b

Bytes Technology Group Valuation

Is BYITL 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-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: BYITL (£4.48) is trading below our estimate of fair value (£5.25)

Significantly Below Fair Value: BYITL 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 BYITL?

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

The above table shows the Price to Earnings ratio for BYITL. This is calculated by dividing BYITL's market cap by their current earnings.
What is BYITL's PE Ratio?
PE Ratio20.8x
EarningsUK£51.91m
Market CapUK£1.08b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BYITL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.4x
ALFA Alfa Financial Software Holdings
31.3x6.3%UK£692.1m
CER Cerillion
40x9.0%UK£555.3m
IDOX IDOX
52.6x24.9%UK£289.1m
DOTD dotdigital Group
25.8x10.5%UK£291.5m
BYITL Bytes Technology Group
20.8x6.7%UK£1.1b

Price-To-Earnings vs Peers: BYITL is good value based on its Price-To-Earnings Ratio (20.8x) compared to the peer average (37.4x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
SORT Sorted Group Holdings
3.1xn/aUS$5.54m
No more companies available in this PE range
No. of Companies5PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BYITL is good value based on its Price-To-Earnings Ratio (20.8x) compared to the UK Software industry average (35.3x).

Price to Earnings Ratio vs Fair Ratio

What is BYITL'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.

BYITL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.8x
Fair PE Ratio34.6x

Price-To-Earnings vs Fair Ratio: BYITL is good value based on its Price-To-Earnings Ratio (20.8x) compared to the estimated Fair Price-To-Earnings Ratio (34.6x).

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 BYITL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£4.47
UK£6.08
+36.0%
8.8%UK£6.75UK£5.00n/a10
Nov ’25UK£4.59
UK£6.08
+32.3%
8.8%UK£6.75UK£5.00n/a10
Oct ’25UK£5.10
UK£6.11
+19.9%
9.9%UK£6.80UK£5.00n/a10
Sep ’25UK£4.77
UK£6.29
+31.9%
7.3%UK£6.80UK£5.20n/a9
Aug ’25UK£4.95
UK£6.35
+28.4%
9.0%UK£7.30UK£5.20n/a8
Jul ’25UK£5.47
UK£6.42
+17.4%
7.6%UK£7.30UK£5.60n/a8
Jun ’25UK£5.56
UK£6.43
+15.7%
7.1%UK£7.30UK£5.60n/a9
May ’25UK£4.84
UK£6.33
+30.7%
7.4%UK£7.20UK£5.60n/a8
Apr ’25UK£5.14
UK£6.49
+26.4%
10.5%UK£8.00UK£5.60n/a8
Mar ’25UK£5.68
UK£6.63
+16.8%
9.0%UK£8.00UK£5.75n/a8
Feb ’25UK£6.13
UK£6.60
+7.6%
10.9%UK£8.00UK£5.75n/a6
Jan ’25UK£6.11
UK£6.15
+0.8%
5.9%UK£6.70UK£5.60n/a7
Dec ’24UK£5.44
UK£6.12
+12.6%
5.7%UK£6.70UK£5.60n/a8
Nov ’24UK£5.03
UK£6.04
+20.1%
4.8%UK£6.40UK£5.60UK£4.597
Oct ’24UK£4.99
UK£6.01
+20.4%
5.0%UK£6.40UK£5.60UK£5.107
Sep ’24UK£4.81
UK£5.92
+23.1%
6.4%UK£6.40UK£5.30UK£4.776
Aug ’24UK£5.11
UK£5.92
+16.0%
6.4%UK£6.40UK£5.30UK£4.956
Jul ’24UK£5.32
UK£5.80
+9.0%
8.9%UK£6.40UK£5.00UK£5.476
Jun ’24UK£5.13
UK£5.46
+6.4%
10.0%UK£6.40UK£4.80UK£5.567
May ’24UK£4.16
UK£5.34
+28.4%
10.8%UK£6.40UK£4.80UK£4.845
Apr ’24UK£3.89
UK£5.43
+39.5%
10.4%UK£6.40UK£4.80UK£5.146
Mar ’24UK£4.02
UK£5.33
+32.8%
13.2%UK£6.40UK£4.20UK£5.686
Feb ’24UK£3.90
UK£5.33
+36.6%
13.2%UK£6.40UK£4.20UK£6.136
Jan ’24UK£3.85
UK£5.30
+37.8%
14.4%UK£6.40UK£4.00UK£6.116
Dec ’23UK£4.28
UK£5.30
+23.9%
14.4%UK£6.40UK£4.00UK£5.446
Nov ’23UK£3.73
UK£5.34
+43.3%
13.0%UK£6.40UK£4.25UK£5.036

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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