Pinewood Technologies Group PLC

LSE:PINE Stock Report

Market Cap: UK£272.6m

Pinewood Technologies Group Valuation

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

Below Fair Value: PINE (£3.24) is trading below our estimate of fair value (£5.33)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for PINE. This is calculated by dividing PINE's market cap by their current earnings.
What is PINE's PE Ratio?
PE Ratio35.4x
EarningsUK£7.66m
Market CapUK£272.57m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PINE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.8x
IDOX IDOX
51.8x24.9%UK£282.8m
DOTD dotdigital Group
26.6x10.5%UK£288.4m
ADVT AdvancedAdvT
40.7xn/aUK£186.5m
ACSO accesso Technology Group
32x13.5%UK£219.5m
PINE Pinewood Technologies Group
35.4x25.1%UK£272.6m

Price-To-Earnings vs Peers: PINE is good value based on its Price-To-Earnings Ratio (35.4x) compared to the peer average (37.8x).

Price to Earnings Ratio vs Industry

How does PINE's PE Ratio compare vs other companies in the GB Software Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
SORT Sorted Group Holdings
3xn/aUS$5.51m
No more companies available in this PE range
PINE 35.4xIndustry Avg. 35.4xNo. of Companies5PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PINE is good value based on its Price-To-Earnings Ratio (35.4x) compared to the UK Software industry average (35.4x).

Price to Earnings Ratio vs Fair Ratio

What is PINE'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.

PINE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio35.4x
Fair PE Ratio33.2x

Price-To-Earnings vs Fair Ratio: PINE is expensive based on its Price-To-Earnings Ratio (35.4x) compared to the estimated Fair Price-To-Earnings Ratio (33.2x).

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 PINE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£3.24
UK£5.18
+60.0%
9.5%UK£5.75UK£4.55n/a3
Nov ’25UK£3.33
UK£5.18
+55.7%
9.5%UK£5.75UK£4.55n/a3
Oct ’25UK£3.61
UK£4.65
+28.9%
15.9%UK£5.50UK£3.70n/a3
Sep ’25UK£3.53
UK£4.65
+31.8%
15.9%UK£5.50UK£3.70n/a3
Aug ’25UK£3.53
UK£4.65
+31.8%
15.9%UK£5.50UK£3.70n/a3
Jul ’25UK£3.46
UK£4.65
+34.5%
15.9%UK£5.50UK£3.70n/a3
Jun ’25UK£3.55
UK£5.95
+67.5%
20.3%UK£7.60UK£4.74n/a3
May ’25UK£3.33
UK£5.39
+61.7%
26.5%UK£7.60UK£3.70n/a4
Apr ’25UK£7.68
UK£6.85
-10.9%
22.0%UK£8.20UK£4.74n/a3
Mar ’25UK£7.40
UK£6.63
-10.4%
14.6%UK£7.60UK£5.66n/a2
Feb ’25UK£7.26
UK£6.82
-6.1%
12.3%UK£7.60UK£5.66n/a3
Jan ’25UK£6.46
UK£6.72
+3.9%
11.1%UK£7.60UK£5.66n/a4
Dec ’24UK£6.38
UK£6.72
+5.3%
11.1%UK£7.60UK£5.66n/a4
Nov ’24UK£6.50
UK£6.72
+3.3%
11.1%UK£7.60UK£5.66UK£3.334
Oct ’24UK£6.66
UK£6.72
+0.8%
11.1%UK£7.60UK£5.66UK£3.614
Sep ’24UK£3.66
UK£6.11
+67.0%
18.4%UK£7.60UK£4.60UK£3.535
Aug ’24UK£3.38
UK£6.11
+81.0%
18.4%UK£7.60UK£4.60UK£3.535
Jul ’24UK£3.53
UK£6.11
+73.0%
18.4%UK£7.60UK£4.60UK£3.465
Jun ’24UK£3.41
UK£6.11
+79.3%
18.4%UK£7.60UK£4.60UK£3.555
May ’24UK£3.52
UK£6.11
+73.4%
18.4%UK£7.60UK£4.60UK£3.335
Apr ’24UK£3.31
UK£6.39
+93.1%
26.5%UK£9.40UK£4.60UK£7.685
Mar ’24UK£3.74
UK£6.27
+67.7%
28.1%UK£9.40UK£4.60UK£7.405
Feb ’24UK£3.94
UK£6.27
+59.2%
28.1%UK£9.40UK£4.60UK£7.265
Jan ’24UK£3.84
UK£7.23
+88.3%
23.8%UK£9.40UK£4.60UK£6.464
Dec ’23UK£5.62
UK£7.23
+28.6%
23.8%UK£9.40UK£4.60UK£6.384
Nov ’23UK£5.42
UK£7.23
+33.4%
23.8%UK£9.40UK£4.60UK£6.504

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

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£22.08

7D

0.2%

1Y

-20.1%

Kontron

€1.0b

Engages in the provision of internet of things (IoT) solutions in Austria and internationally.

0L9J

€17.28

7D

-1.8%

1Y

-23.1%

RingCentral

US$3.2b

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

0V50

US$35.02

7D

-6.8%

1Y

19.3%