NCC Group plc

LSE:NCC Stock Report

Market Cap: UK£462.0m

NCC Group Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 (£1.48) is trading below our estimate of fair value (£2.66)

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?

Other financial metrics that can be useful for relative valuation.

NCC 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/Revenue1.6x
Enterprise Value/EBITDA14.1x
PEG Ration/a

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)
1.5x-1.5%UK£439.7m
KNOS Kainos Group
2.8x8.1%UK£1.1b
KCT Kin and Carta
1.2x9.2%UK£224.6m
ECK Eckoh
3.8x7.1%UK£141.1m
NCC NCC Group
1.4x4.5%UK£462.0m

Price-To-Sales vs Peers: NCC is good value based on its Price-To-Sales Ratio (1.4x) compared to the peer average (2.3x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.0%
 n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.0%
 n/an/an/a
No more companies

Price-To-Sales vs Industry: NCC is good value based on its Price-To-Sales Ratio (1.4x) compared to the UK IT industry average (1.5x).

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 Ratio1.4x
Fair PS Ratio1.9x

Price-To-Sales vs Fair Ratio: NCC is good value based on its Price-To-Sales Ratio (1.4x) compared to the estimated Fair Price-To-Sales Ratio (1.9x).

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£1.48
UK£1.75
+18.3%
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£0.95n/a8
Oct ’24UK£1.18
UK£1.38
+17.1%
22.1%UK£2.00UK£0.95n/a7
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
Oct ’23UK£2.19
UK£2.72
+24.3%
15.5%UK£3.63UK£2.35UK£1.186
Sep ’23UK£1.90
UK£2.80
+47.6%
17.5%UK£3.63UK£2.00UK£1.006

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

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