Kainos Group plc

BATS-CHIXE:KNOSL Stock Report

Market Cap: UK£978.6m

Kainos Group Valuation

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

Below Fair Value: KNOSL (£7.8) is trading above our estimate of fair value (£7.52)

Significantly Below Fair Value: KNOSL is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for KNOSL. This is calculated by dividing KNOSL's market cap by their current earnings.
What is KNOSL's PE Ratio?
PE Ratio18.8x
EarningsUK£52.01m
Market CapUK£978.60m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for KNOSL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.4x
CCC Computacenter
13.7x7.0%UK£2.3b
FDM FDM Group (Holdings)
11.7x-7.3%UK£355.7m
SCT Softcat
26.5x8.6%UK£3.2b
ECK Eckoh
33.7x8.7%UK£153.0m
KNOSL Kainos Group
18.8x1.7%UK£978.6m

Price-To-Earnings vs Peers: KNOSL is good value based on its Price-To-Earnings Ratio (18.8x) compared to the peer average (21.4x).

Price to Earnings Ratio vs Industry

How does KNOSL's PE Ratio compare vs other companies in the European IT Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
No. of Companies22PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: KNOSL is expensive based on its Price-To-Earnings Ratio (18.8x) compared to the European IT industry average (17.4x).

Price to Earnings Ratio vs Fair Ratio

What is KNOSL'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.

KNOSL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.8x
Fair PE Ratio32.5x

Price-To-Earnings vs Fair Ratio: KNOSL is good value based on its Price-To-Earnings Ratio (18.8x) compared to the estimated Fair Price-To-Earnings Ratio (32.5x).

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 KNOSL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£7.80
UK£10.38
+33.0%
19.5%UK£15.10UK£7.25n/a11
Nov ’25UK£7.47
UK£11.23
+50.4%
14.4%UK£15.10UK£8.95n/a10
Oct ’25UK£8.75
UK£13.14
+50.2%
17.5%UK£17.50UK£10.00n/a10
Sep ’25UK£11.00
UK£13.91
+26.4%
18.8%UK£19.10UK£10.54n/a10
Aug ’25UK£10.98
UK£13.91
+26.6%
18.8%UK£19.10UK£10.54n/a10
Jul ’25UK£10.44
UK£14.04
+34.5%
20.1%UK£19.10UK£9.88n/a9
Jun ’25UK£11.48
UK£13.89
+21.0%
19.6%UK£19.10UK£9.88n/a10
May ’25UK£9.82
UK£13.54
+37.9%
24.6%UK£21.00UK£10.00n/a10
Apr ’25UK£9.70
UK£14.21
+46.5%
21.9%UK£21.00UK£10.00n/a9
Mar ’25UK£10.90
UK£14.21
+30.4%
21.9%UK£21.00UK£10.00n/a9
Feb ’25UK£11.40
UK£14.12
+23.9%
22.6%UK£21.00UK£10.00n/a9
Jan ’25UK£11.25
UK£14.44
+28.4%
21.9%UK£21.00UK£10.00n/a9
Dec ’24UK£9.46
UK£14.44
+52.6%
21.9%UK£21.00UK£10.00n/a9
Nov ’24UK£11.17
UK£15.66
+40.2%
16.1%UK£20.00UK£12.80UK£7.478
Oct ’24UK£11.56
UK£15.68
+35.6%
15.9%UK£20.00UK£12.99UK£8.758
Sep ’24UK£12.22
UK£15.27
+25.0%
17.2%UK£20.00UK£12.00UK£11.009
Aug ’24UK£12.99
UK£15.27
+17.6%
17.2%UK£20.00UK£12.00UK£10.989
Jul ’24UK£12.40
UK£15.20
+22.6%
17.7%UK£20.00UK£12.00UK£10.449
Jun ’24UK£12.99
UK£15.36
+18.2%
18.3%UK£20.00UK£12.00UK£11.489
May ’24UK£12.39
UK£15.72
+26.9%
16.6%UK£20.00UK£12.38UK£9.829
Apr ’24UK£13.85
UK£15.72
+13.5%
15.6%UK£20.00UK£12.00UK£9.7010
Mar ’24UK£13.95
UK£15.72
+12.7%
15.6%UK£20.00UK£12.00UK£10.9010
Feb ’24UK£14.70
UK£15.72
+6.9%
15.6%UK£20.00UK£12.00UK£11.4010
Jan ’24UK£15.44
UK£15.37
-0.4%
11.5%UK£18.17UK£12.00UK£11.259
Dec ’23UK£16.02
UK£15.73
-1.8%
15.1%UK£21.50UK£12.00UK£9.4610
Nov ’23UK£12.81
UK£14.91
+16.4%
19.5%UK£21.50UK£12.00UK£11.178

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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