RM Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: RMl (£0.74) is trading below our estimate of fair value (£2.86)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for RMl. This is calculated by dividing RMl's market cap by their current revenue.
What is RMl's PS Ratio?
PS Ratio	0.4x
Sales	UK£186.77m
Market Cap	UK£66.60m

RMl key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.7x
Enterprise Value/EBITDA	-123.2x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for RMl vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	2.6x
AOM ActiveOps	2.9x	8.0%	UK£80.3m
ARB Argo Blockchain	1.2x	28.6%	UK£48.6m
QTX Quartix Technologies	2.8x	7.1%	UK£86.6m
ELCO Eleco	3.7x	14.3%	UK£114.5m
RMl RM	0.4x	n/a	UK£66.6m

Price-To-Sales vs Peers: RMl is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (2.6x).

Price to Sales Ratio vs Industry

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

12 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	n/a	8.2%
RMl RM	0.4x	n/a	US$84.35m
RM. RM	0.4x	n/a	US$84.51m
SWG Shearwater Group	0.4x	n/a	US$10.58m

12 Companies		Estimated Growth	Market Cap
Industry Avg.	n/a	13.8%
RMl RM	0.4x	n/a	US$84.35m

No more companies

Price-To-Sales vs Industry: RMl is good value based on its Price-To-Sales Ratio (0.4x) compared to the UK Software industry average (2.5x).

Price to Sales Ratio vs Fair Ratio

What is RMl'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.

RMl PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.4x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate RMl's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Computacenter

UK£2.3b

Provides technology and services to corporate and public sector organizations in the United Kingdom, Germany, France, North America, and internationally.

CCCL

UK£22.28

0.09%

-17.1%

Truecaller

SEK 16.7b

Develops and publishes mobile caller ID applications for individuals and business in India, the Middle East, Africa, and internationally.

0AA7

SEK 48.66

5.6%

51.9%

Kontron

€1.0b

Engages in the provision of internet of things (IoT) solutions in Austria and internationally.

0L9J

€16.87

-0.04%

-22.0%