We’ve recently updated our valuation analysis.

Capita Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

CPI 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/Revenue0.4x
Enterprise Value/EBITDA-7.4x
PEG Ration/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for CPI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average3.6x
PAY PayPoint
2.4x5.9%UK£364.3m
WPS W.A.G payment solutions
0.3x22.8%UK£551.1m
BOKU Boku
8.1x10.2%UK£453.9m
IBPO iEnergizer
3.5x11.5%UK£816.6m
CPI Capita
0.2x2.0%UK£463.6m

Price-To-Sales vs Peers: CPI is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (3.6x).


Price to Earnings Ratio vs Industry

How does CPI's PE Ratio compare vs other companies in the GB IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.8%
n/an/an/a

Price-To-Sales vs Industry: CPI is good value based on its Price-To-Sales Ratio (0.2x) compared to the UK IT industry average (2x)


Price to Sales Ratio vs Fair Ratio

What is CPI'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.

CPI PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ratio1x

Price-To-Sales vs Fair Ratio: CPI is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (1x).


Share Price vs Fair Value

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

Below Fair Value: CPI (£0.28) is trading below our estimate of fair value (£1.11)

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


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 CPI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.28
UK£0.38
+38.4%
25.2%UK£0.50UK£0.23n/a6
Jan ’24UK£0.24
UK£0.38
+57.9%
25.2%UK£0.50UK£0.23n/a6
Dec ’23UK£0.24
UK£0.40
+69.1%
26.4%UK£0.50UK£0.23n/a4
Nov ’23UK£0.25
UK£0.37
+48.3%
28.1%UK£0.50UK£0.23n/a6
Oct ’23UK£0.25
UK£0.37
+47.1%
28.1%UK£0.50UK£0.23n/a6
Sep ’23UK£0.25
UK£0.39
+54.8%
28.1%UK£0.50UK£0.22n/a7
Aug ’23UK£0.30
UK£0.39
+30.7%
28.3%UK£0.50UK£0.21n/a7
Jul ’23UK£0.26
UK£0.44
+73.6%
32.9%UK£0.70UK£0.21n/a7
Jun ’23UK£0.25
UK£0.51
+104.5%
31.9%UK£0.70UK£0.21n/a6
May ’23UK£0.24
UK£0.52
+117.5%
31.6%UK£0.70UK£0.21n/a6
Apr ’23UK£0.21
UK£0.51
+142.4%
30.6%UK£0.70UK£0.21n/a7
Mar ’23UK£0.26
UK£0.55
+106.6%
29.9%UK£0.80UK£0.29n/a7
Feb ’23UK£0.32
UK£0.55
+70.6%
29.9%UK£0.80UK£0.29n/a7
Jan ’23UK£0.36
UK£0.54
+46.6%
28.8%UK£0.80UK£0.30UK£0.248
Dec ’22UK£0.45
UK£0.58
+28.2%
26.8%UK£0.80UK£0.37UK£0.248
Nov ’22UK£0.48
UK£0.56
+18.3%
28.2%UK£0.80UK£0.37UK£0.257
Oct ’22UK£0.51
UK£0.56
+11.2%
26.5%UK£0.80UK£0.37UK£0.258
Sep ’22UK£0.49
UK£0.55
+12.3%
28.9%UK£0.80UK£0.37UK£0.258
Aug ’22UK£0.35
UK£0.52
+46.2%
25.4%UK£0.70UK£0.37UK£0.307
Jul ’22UK£0.38
UK£0.52
+36.8%
25.4%UK£0.70UK£0.37UK£0.267
Jun ’22UK£0.40
UK£0.62
+54.3%
44.0%UK£1.30UK£0.38UK£0.259
May ’22UK£0.44
UK£0.62
+42.8%
44.0%UK£1.30UK£0.38UK£0.249
Apr ’22UK£0.45
UK£0.62
+38.9%
44.0%UK£1.30UK£0.38UK£0.219
Mar ’22UK£0.48
UK£0.63
+31.5%
58.2%UK£1.30UK£0.32UK£0.268
Feb ’22UK£0.36
UK£0.63
+75.6%
58.2%UK£1.30UK£0.32UK£0.328
Jan ’22UK£0.39
UK£0.62
+57.2%
60.2%UK£1.30UK£0.32UK£0.368

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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