Softcat plc

BATS-CHIXE:SCTL Stock Report

Market Cap: UK£3.0b

Softcat Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

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Learn how to determine fair value like the best investors in the world.

Below Fair Value: SCTL (£14.76) is trading above our estimate of fair value (£11.98)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SCTL. This is calculated by dividing SCTL's market cap by their current earnings.
What is SCTL's PE Ratio?
PE Ratio22.2x
EarningsUK£133.01m
Market CapUK£2.96b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SCTL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.5x
CCC Computacenter
20.8x11.19%UK£3.3b
KNOS Kainos Group
39.7x23.05%UK£1.2b
FDM FDM Group (Holdings)
9.2x-10.82%UK£141.9m
CLBS Celebrus Technologies
20.4x10.77%UK£59.0m
SCTL Softcat
22.2x8.55%UK£3.0b

Price-To-Earnings vs Peers: SCTL is good value based on its Price-To-Earnings Ratio (22.2x) compared to the peer average (22.5x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies25PE01632486480+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SCTL is expensive based on its Price-To-Earnings Ratio (22.2x) compared to the European IT industry average (19.4x).

Price to Earnings Ratio vs Fair Ratio

What is SCTL'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.

SCTL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.2x
Fair PE Ratio35.5x

Price-To-Earnings vs Fair Ratio: SCTL is good value based on its Price-To-Earnings Ratio (22.2x) compared to the estimated Fair Price-To-Earnings Ratio (35.5x).

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 SCTL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£14.76
UK£18.10
+22.63%
12.70%UK£21.35UK£14.50n/a12
Jan ’27UK£14.20
UK£18.27
+28.64%
11.68%UK£21.35UK£14.50n/a12
Dec ’26UK£14.45
UK£18.10
+25.26%
11.65%UK£21.35UK£14.50n/a12
Nov ’26UK£15.96
UK£18.15
+13.76%
11.77%UK£21.35UK£14.50n/a12
Oct ’26UK£15.57
UK£18.05
+15.90%
12.74%UK£21.35UK£14.00n/a12
Sep ’26UK£16.32
UK£18.14
+11.16%
13.11%UK£21.35UK£14.00n/a11
Aug ’26UK£15.98
UK£17.90
+11.99%
12.74%UK£21.35UK£13.85n/a12
Jul ’26UK£17.27
UK£17.80
+3.05%
13.02%UK£21.35UK£13.85n/a13
Jun ’26UK£17.90
UK£17.76
-0.80%
13.42%UK£21.35UK£13.50n/a13
May ’26UK£17.06
UK£17.56
+2.92%
13.63%UK£21.35UK£13.50n/a13
Apr ’26UK£16.22
UK£17.69
+9.08%
13.75%UK£21.35UK£13.10n/a14
Mar ’26UK£15.07
UK£17.06
+13.17%
12.97%UK£20.00UK£13.10n/a14
Feb ’26UK£16.12
UK£17.06
+5.80%
12.97%UK£20.00UK£13.10n/a14
Jan ’26UK£15.23
UK£17.12
+12.41%
12.17%UK£20.00UK£13.10UK£14.2014
Dec ’25UK£15.81
UK£17.05
+7.83%
12.83%UK£20.00UK£13.10UK£14.4514
Nov ’25UK£17.19
UK£17.05
-0.83%
12.83%UK£20.00UK£13.10UK£15.9614
Oct ’25UK£15.48
UK£16.72
+8.01%
13.02%UK£19.60UK£12.50UK£15.5714
Sep ’25UK£15.54
UK£16.72
+7.59%
13.02%UK£19.60UK£12.50UK£16.3214
Aug ’25UK£16.05
UK£16.68
+3.95%
13.05%UK£19.60UK£12.50UK£15.9814
Jul ’25UK£17.84
UK£17.01
-4.61%
13.11%UK£19.60UK£12.50UK£17.2714
Jun ’25UK£16.66
UK£16.70
+0.30%
12.50%UK£19.60UK£12.50UK£17.9015
May ’25UK£15.61
UK£16.45
+5.37%
12.25%UK£19.60UK£12.50UK£17.0614
Apr ’25UK£15.93
UK£16.02
+0.59%
10.42%UK£18.00UK£12.50UK£16.2215
Mar ’25UK£14.92
UK£15.57
+4.34%
11.90%UK£18.00UK£12.20UK£15.0715
Feb ’25UK£14.60
UK£15.55
+6.52%
13.31%UK£20.10UK£12.20UK£16.1214
Jan ’25UK£13.63
UK£15.33
+12.47%
14.80%UK£20.10UK£11.50UK£15.2314
UK£18.03
Fair Value
18.1% undervalued intrinsic discount
12
Number of Analysts

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/01/09 00:09
End of Day Share Price 2026/01/09 00:00
Earnings2025/07/31
Annual Earnings2025/07/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Softcat plc is covered by 17 analysts. 11 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
James ZarembaBarclays
Benjamin MayBerenberg
Alexander James ShortBerenberg