Alfa Financial Software Holdings PLC

LSE:ALFA Stock Report

Market Cap: UK£692.1m

Alfa Financial Software Holdings Valuation

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

Below Fair Value: ALFA (£2.35) is trading above our estimate of fair value (£1.75)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ALFA. This is calculated by dividing ALFA's market cap by their current earnings.
What is ALFA's PE Ratio?
PE Ratio31.3x
EarningsUK£22.10m
Market CapUK£692.05m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ALFA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average34.8x
CER Cerillion
39.5x8.7%UK£555.3m
BYIT Bytes Technology Group
20.8x6.7%UK£1.1b
IDOX IDOX
52.6x24.9%UK£289.1m
DOTD dotdigital Group
26.3x10.5%UK£291.5m
ALFA Alfa Financial Software Holdings
31.3x6.3%UK£692.1m

Price-To-Earnings vs Peers: ALFA is good value based on its Price-To-Earnings Ratio (31.3x) compared to the peer average (34.8x).

Price to Earnings Ratio vs Industry

How does ALFA'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
ALFA 31.3xIndustry Avg. 35.3xNo. of Companies5PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ALFA is good value based on its Price-To-Earnings Ratio (31.3x) compared to the UK Software industry average (35.3x).

Price to Earnings Ratio vs Fair Ratio

What is ALFA'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.

ALFA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.3x
Fair PE Ratio32.7x

Price-To-Earnings vs Fair Ratio: ALFA is good value based on its Price-To-Earnings Ratio (31.3x) compared to the estimated Fair Price-To-Earnings Ratio (32.7x).

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 ALFA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£2.35
UK£2.56
+9.0%
4.6%UK£2.72UK£2.40n/a4
Nov ’25UK£2.23
UK£2.45
+9.9%
8.0%UK£2.65UK£2.15n/a4
Oct ’25UK£1.98
UK£2.45
+23.5%
8.0%UK£2.65UK£2.15n/a4
Sep ’25UK£1.94
UK£2.20
+13.5%
5.3%UK£2.40UK£2.10n/a4
Aug ’25UK£1.98
UK£2.20
+11.2%
5.3%UK£2.40UK£2.10n/a4
Jul ’25UK£1.89
UK£2.20
+16.4%
5.3%UK£2.40UK£2.10n/a4
Jun ’25UK£1.85
UK£2.20
+18.7%
5.3%UK£2.40UK£2.10n/a4
May ’25UK£1.72
UK£2.20
+27.8%
5.3%UK£2.40UK£2.10n/a4
Apr ’25UK£1.70
UK£2.20
+29.8%
5.3%UK£2.40UK£2.10n/a4
Mar ’25UK£1.73
UK£2.20
+27.2%
5.3%UK£2.40UK£2.10n/a4
Feb ’25UK£1.71
UK£2.20
+28.7%
5.3%UK£2.40UK£2.10n/a4
Jan ’25UK£1.40
UK£2.20
+57.1%
5.3%UK£2.40UK£2.10n/a4
Dec ’24UK£1.53
UK£2.20
+43.8%
5.3%UK£2.40UK£2.10n/a4
Nov ’24UK£1.49
UK£2.20
+48.1%
5.3%UK£2.40UK£2.10UK£2.234
Oct ’24UK£1.85
UK£2.22
+20.1%
5.9%UK£2.40UK£2.10UK£1.983
Sep ’24UK£1.51
UK£2.20
+45.7%
5.3%UK£2.40UK£2.10UK£1.944
Aug ’24UK£1.56
UK£2.20
+41.5%
5.3%UK£2.40UK£2.10UK£1.984
Jul ’24UK£1.95
UK£2.20
+12.8%
6.4%UK£2.40UK£2.10UK£1.893
Jun ’24UK£1.62
UK£2.19
+35.0%
5.7%UK£2.40UK£2.10UK£1.854
May ’24UK£1.42
UK£2.19
+54.0%
5.7%UK£2.40UK£2.10UK£1.724
Apr ’24UK£1.37
UK£2.20
+61.2%
6.4%UK£2.40UK£2.10UK£1.703
Mar ’24UK£1.62
UK£2.14
+32.4%
1.9%UK£2.20UK£2.10UK£1.734
Feb ’24UK£1.80
UK£2.14
+18.8%
1.9%UK£2.20UK£2.10UK£1.714
Jan ’24UK£1.66
UK£2.15
+29.5%
1.9%UK£2.20UK£2.10UK£1.403
Dec ’23UK£1.62
UK£2.15
+32.7%
1.9%UK£2.20UK£2.10UK£1.533
Nov ’23UK£1.50
UK£2.15
+43.3%
1.9%UK£2.20UK£2.10UK£1.493

Analyst Forecast: Target price is less than 20% higher than the current share price.

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