Kainos Group plc

LSE:KNOS Stock Report

Market Cap: UK£978.3m

Kainos Group Valuation

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

Below Fair Value: KNOS (£7.78) is trading above our estimate of fair value (£7.4)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for KNOS. This is calculated by dividing KNOS's market cap by their current earnings.
What is KNOS's PE Ratio?
PE Ratio18.8x
EarningsUK£52.01m
Market CapUK£978.34m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for KNOS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.3x
CCC Computacenter
13x6.4%UK£2.2b
FDM FDM Group (Holdings)
11.2x-7.3%UK£339.9m
SCT Softcat
25.4x8.6%UK£3.0b
ECK Eckoh
43.8x18.7%UK£154.8m
KNOS Kainos Group
18.8x1.5%UK£978.3m

Price-To-Earnings vs Peers: KNOS is good value based on its Price-To-Earnings Ratio (18.8x) compared to the peer average (23.3x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
KNOS 18.8xIndustry Avg. 17.6xNo. of Companies27PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: KNOS is expensive based on its Price-To-Earnings Ratio (18.8x) compared to the European IT industry average (17.6x).

Price to Earnings Ratio vs Fair Ratio

What is KNOS'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.

KNOS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.8x
Fair PE Ratio32.3x

Price-To-Earnings vs Fair Ratio: KNOS is good value based on its Price-To-Earnings Ratio (18.8x) compared to the estimated Fair Price-To-Earnings Ratio (32.3x).

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 KNOS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£7.78
UK£10.38
+33.4%
19.5%UK£15.10UK£7.25n/a11
Dec ’25UK£7.76
UK£10.38
+33.7%
19.5%UK£15.10UK£7.25n/a11
Nov ’25UK£7.43
UK£11.23
+51.2%
14.4%UK£15.10UK£8.95n/a10
Oct ’25UK£8.63
UK£13.14
+52.3%
17.5%UK£17.50UK£10.00n/a10
Sep ’25UK£11.06
UK£13.91
+25.7%
18.8%UK£19.10UK£10.54n/a10
Aug ’25UK£10.86
UK£13.91
+28.0%
18.8%UK£19.10UK£10.54n/a10
Jul ’25UK£10.40
UK£14.04
+35.0%
20.1%UK£19.10UK£9.88n/a9
Jun ’25UK£11.52
UK£13.89
+20.6%
19.6%UK£19.10UK£9.88n/a10
May ’25UK£9.73
UK£13.54
+39.2%
24.6%UK£21.00UK£10.00n/a10
Apr ’25UK£9.66
UK£14.21
+47.2%
21.9%UK£21.00UK£10.00n/a9
Mar ’25UK£10.86
UK£14.21
+30.9%
21.9%UK£21.00UK£10.00n/a9
Feb ’25UK£11.35
UK£14.12
+24.4%
22.6%UK£21.00UK£10.00n/a9
Jan ’25UK£11.19
UK£14.44
+29.0%
21.9%UK£21.00UK£10.00n/a9
Dec ’24UK£9.50
UK£14.44
+52.0%
21.9%UK£21.00UK£10.00UK£7.769
Nov ’24UK£11.12
UK£15.66
+40.8%
16.1%UK£20.00UK£12.80UK£7.438
Oct ’24UK£11.49
UK£15.68
+36.5%
15.9%UK£20.00UK£12.99UK£8.638
Sep ’24UK£12.25
UK£15.27
+24.7%
17.2%UK£20.00UK£12.00UK£11.069
Aug ’24UK£12.96
UK£15.27
+17.8%
17.2%UK£20.00UK£12.00UK£10.869
Jul ’24UK£12.32
UK£15.20
+23.4%
17.7%UK£20.00UK£12.00UK£10.409
Jun ’24UK£13.00
UK£15.36
+18.2%
18.3%UK£20.00UK£12.00UK£11.529
May ’24UK£12.40
UK£15.72
+26.8%
16.6%UK£20.00UK£12.38UK£9.739
Apr ’24UK£13.82
UK£15.72
+13.7%
15.6%UK£20.00UK£12.00UK£9.6610
Mar ’24UK£13.97
UK£15.72
+12.5%
15.6%UK£20.00UK£12.00UK£10.8610
Feb ’24UK£14.66
UK£15.72
+7.2%
15.6%UK£20.00UK£12.00UK£11.3510
Jan ’24UK£15.43
UK£15.37
-0.4%
11.5%UK£18.17UK£12.00UK£11.199
Dec ’23UK£16.14
UK£15.73
-2.5%
15.1%UK£21.50UK£12.00UK£9.5010

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/30 03:19
End of Day Share Price 2024/12/30 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

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 here.

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 .

Analyst Sources

Kainos Group plc is covered by 15 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
Benjamin MayBerenberg
Alexander James ShortBerenberg
Aditya BuddhavarapuBofA Global Research