NCC Group plc

LSE:NCC Stock Report

Market Cap: UK£487.1m

NCC Group Valuation

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

Below Fair Value: NCC (£1.55) is trading below our estimate of fair value (£2.51)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for NCC. This is calculated by dividing NCC's market cap by their current revenue.
What is NCC's PS Ratio?
PS Ratio1.5x
SalesUK£324.40m
Market CapUK£487.13m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for NCC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.3x
FDM FDM Group (Holdings)
1.2x-5.2%UK£343.7m
KNOS Kainos Group
2.8x5.7%UK£1.0b
KCT Kin and Carta
1.2x9.2%UK£224.6m
ECK Eckoh
4.1x7.1%UK£153.0m
NCC NCC Group
1.5x4.5%UK£487.1m

Price-To-Sales vs Peers: NCC is good value based on its Price-To-Sales Ratio (1.5x) compared to the peer average (2.3x).

Price to Sales Ratio vs Industry

How does NCC's PS Ratio compare vs other companies in the GB IT Industry?

2 CompaniesPrice / SalesEstimated GrowthMarket Cap
NVIQ Noventiq Holdings
0.1xn/aUS$228.10m
CLCO CloudCoCo Group
0.06xn/aUS$2.23m
No more companies available in this PS range
NCC 1.5xIndustry Avg. 0.9xNo. of Companies5PS01.22.43.64.86+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: NCC is expensive based on its Price-To-Sales Ratio (1.5x) compared to the European IT industry average (0.9x).

Price to Sales Ratio vs Fair Ratio

What is NCC'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.

NCC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.5x
Fair PS Ratio1.8x

Price-To-Sales vs Fair Ratio: NCC is good value based on its Price-To-Sales Ratio (1.5x) compared to the estimated Fair Price-To-Sales Ratio (1.8x).

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 NCC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.57
UK£1.79
+13.9%
12.3%UK£2.00UK£1.35n/a6
Nov ’25UK£1.56
UK£1.79
+14.2%
12.3%UK£2.00UK£1.35n/a6
Oct ’25UK£1.73
UK£1.75
+0.7%
13.0%UK£2.00UK£1.35n/a7
Sep ’25UK£1.55
UK£1.75
+12.9%
13.0%UK£2.00UK£1.35n/a7
Aug ’25UK£1.45
UK£1.72
+18.4%
12.7%UK£2.00UK£1.35n/a7
Jul ’25UK£1.53
UK£1.70
+11.1%
12.1%UK£2.00UK£1.35n/a7
Jun ’25UK£1.40
UK£1.56
+11.6%
15.5%UK£2.00UK£1.15n/a8
May ’25UK£1.33
UK£1.54
+16.3%
16.5%UK£2.00UK£1.15n/a7
Apr ’25UK£1.24
UK£1.47
+18.2%
21.0%UK£2.00UK£0.95n/a8
Mar ’25UK£1.25
UK£1.47
+18.0%
21.0%UK£2.00UK£0.95n/a8
Feb ’25UK£1.20
UK£1.47
+22.7%
21.0%UK£2.00UK£0.95n/a8
Jan ’25UK£1.29
UK£1.37
+6.4%
22.2%UK£2.00UK£0.95n/a8
Dec ’24UK£1.21
UK£1.37
+13.4%
22.2%UK£2.00UK£0.95n/a8
Nov ’24UK£1.10
UK£1.35
+22.4%
22.2%UK£2.00UK£0.95UK£1.568
Oct ’24UK£1.18
UK£1.38
+17.1%
22.1%UK£2.00UK£0.95UK£1.737
Sep ’24UK£1.00
UK£1.38
+37.7%
22.3%UK£2.00UK£0.94UK£1.557
Aug ’24UK£1.00
UK£1.35
+34.8%
21.9%UK£2.00UK£0.94UK£1.458
Jul ’24UK£0.97
UK£1.35
+40.0%
21.9%UK£2.00UK£0.94UK£1.538
Jun ’24UK£0.91
UK£1.47
+60.6%
31.2%UK£2.40UK£0.94UK£1.408
May ’24UK£1.07
UK£1.74
+62.2%
26.0%UK£2.40UK£1.17UK£1.338
Apr ’24UK£1.02
UK£2.17
+112.2%
17.1%UK£2.45UK£1.30UK£1.248
Mar ’24UK£1.70
UK£2.51
+47.4%
18.9%UK£3.63UK£2.05UK£1.257
Feb ’24UK£1.84
UK£2.68
+45.5%
14.7%UK£3.63UK£2.40UK£1.207
Jan ’24UK£2.00
UK£2.74
+37.1%
14.7%UK£3.63UK£2.45UK£1.296
Dec ’23UK£2.15
UK£2.74
+27.8%
14.7%UK£3.63UK£2.45UK£1.216
Nov ’23UK£2.05
UK£2.72
+32.8%
15.5%UK£3.63UK£2.35UK£1.106

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

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