Micro Focus International plc

LSE:MCRO Stock Report

Market Cap: UK£1.7b

This company listing is no longer active

This company may still be operating, however this listing is no longer active. Find out why through their latest events.

Micro Focus International Valuation

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

Below Fair Value: MCRO (£5.32) is trading below our estimate of fair value (£6.25)

Significantly Below Fair Value: MCRO is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for MCRO. This is calculated by dividing MCRO's market cap by their current revenue.
What is MCRO's PS Ratio?
PS Ratio0.8x
SalesUS$2.74b
Market CapUS$2.12b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for MCRO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.2x
BYIT Bytes Technology Group
5.3x11.0%UK£1.1b
GBG GB Group
3.2x6.9%UK£903.6m
FDP FD Technologies
2x-11.6%UK£492.2m
ALFA Alfa Financial Software Holdings
6.4x9.6%UK£652.2m
MCRO Micro Focus International
0.8x-3.8%UK£1.7b

Price-To-Sales vs Peers: MCRO is good value based on its Price-To-Sales Ratio (0.8x) compared to the peer average (3.8x).

Price to Sales Ratio vs Industry

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

11 CompaniesPrice / SalesEstimated GrowthMarket Cap
RM. RM
0.3xn/aUS$81.01m
SWG Shearwater Group
0.4xn/aUS$10.80m
MBO MobilityOne
0.01xn/aUS$3.01m
CCS Crossword Cybersecurity
0.5xn/aUS$2.46m
MCRO 0.8xIndustry Avg. 2.4xNo. of Companies13PS0246810+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: MCRO is good value based on its Price-To-Sales Ratio (0.8x) compared to the UK Software industry average (2.2x).

Price to Sales Ratio vs Fair Ratio

What is MCRO'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.

MCRO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.8x
Fair PS Ratio3.1x

Price-To-Sales vs Fair Ratio: MCRO is good value based on its Price-To-Sales Ratio (0.8x) compared to the estimated Fair Price-To-Sales Ratio (3.1x).

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 MCRO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
UK£4.41
0%
22.9%UK£5.16UK£2.98n/a3
Nov ’25n/a
UK£4.41
0%
22.9%UK£5.16UK£2.98n/a3
Oct ’25n/a
UK£4.41
0%
22.9%UK£5.16UK£2.98n/a3
Sep ’25n/a
UK£4.41
0%
22.9%UK£5.16UK£2.98n/a3
Aug ’25n/a
UK£4.41
0%
22.9%UK£5.16UK£2.98n/a3
Jul ’25n/a
UK£4.41
0%
22.9%UK£5.16UK£2.98n/a3
Jun ’25n/a
UK£4.41
0%
22.9%UK£5.16UK£2.98n/a3
May ’25n/a
UK£4.41
0%
22.9%UK£5.16UK£2.98n/a3
Apr ’25n/a
UK£4.41
0%
22.9%UK£5.16UK£2.98n/a3
Mar ’25n/a
UK£4.41
0%
22.9%UK£5.16UK£2.98n/a3
Feb ’25n/a
UK£4.41
0%
22.9%UK£5.16UK£2.98n/a3
Jan ’25n/a
UK£4.41
0%
22.9%UK£5.16UK£2.98n/a3
Dec ’24n/a
UK£4.41
0%
22.9%UK£5.16UK£2.98n/a3
Nov ’24n/a
UK£4.41
0%
22.9%UK£5.16UK£2.98n/a3
Oct ’24n/a
UK£4.41
0%
22.9%UK£5.16UK£2.98n/a3
Sep ’24n/a
UK£4.41
0%
22.9%UK£5.16UK£2.98n/a3
Aug ’24n/a
UK£4.41
0%
22.9%UK£5.16UK£2.98n/a3
Jul ’24n/a
UK£4.41
0%
22.9%UK£5.16UK£2.98n/a3
Jun ’24n/a
UK£4.41
0%
22.9%UK£5.16UK£2.98n/a3
May ’24n/a
UK£4.41
0%
22.9%UK£5.16UK£2.98n/a3
Apr ’24n/a
UK£4.41
0%
22.9%UK£5.16UK£2.98n/a3
Mar ’24n/a
UK£4.41
0%
22.9%UK£5.16UK£2.98n/a3
Feb ’24UK£5.32
UK£4.41
-17.2%
22.9%UK£5.16UK£2.98n/a3
Jan ’24UK£5.29
UK£4.87
-8.0%
22.2%UK£5.92UK£3.06n/a4
Dec ’23UK£5.22
UK£4.96
-4.9%
22.5%UK£6.08UK£3.10n/a4
Nov ’23UK£5.19
UK£4.96
-4.4%
22.5%UK£6.08UK£3.10n/a4

Analyst Forecast: Target price is lower than the current share price.

Discover undervalued companies

Capgemini

€26.2b

Engages in the provision of consulting, digital transformation, technology, and engineering services primarily in North America, France, the United Kingdom, Ireland, the rest of Europe, the Asia-Pacific, and Latin America.

CAPP

€153.25

7D

-4.9%

1Y

-14.3%

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£22.26

7D

0.3%

1Y

-18.9%

RingCentral

US$3.2b

Provides cloud communications, video meetings, collaboration, and contact center software-as-a-service solutions worldwide.

0V50

US$34.91

7D

-7.0%

1Y

18.9%