Softcat plc

LSE:SCT Stock Report

Market Cap: UK£3.3b

Softcat Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: SCT (£16.37) is trading above our estimate of fair value (£15.57)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SCT. This is calculated by dividing SCT's market cap by their current earnings.
What is SCT's PE Ratio?
PE Ratio27.4x
EarningsUK£119.04m
Market CapUK£3.26b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SCT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.8x
CCC Computacenter
13.7x7.0%UK£2.3b
KNOS Kainos Group
20.1x1.7%UK£1.0b
FDM FDM Group (Holdings)
11.7x-5.9%UK£354.6m
ECK Eckoh
33.5x8.7%UK£152.5m
SCT Softcat
27.4x8.8%UK£3.3b

Price-To-Earnings vs Peers: SCT is expensive based on its Price-To-Earnings Ratio (27.4x) compared to the peer average (19.8x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
SCT 27.4xIndustry Avg. 17.9xNo. of Companies22PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SCT is expensive based on its Price-To-Earnings Ratio (27.4x) compared to the European IT industry average (17.9x).

Price to Earnings Ratio vs Fair Ratio

What is SCT'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.

SCT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.4x
Fair PE Ratio41x

Price-To-Earnings vs Fair Ratio: SCT is good value based on its Price-To-Earnings Ratio (27.4x) compared to the estimated Fair Price-To-Earnings Ratio (41x).

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 SCT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£16.37
UK£17.05
+4.1%
12.8%UK£20.00UK£13.10n/a14
Nov ’25UK£17.24
UK£17.05
-1.1%
12.8%UK£20.00UK£13.10n/a14
Oct ’25UK£15.44
UK£16.72
+8.3%
13.0%UK£19.60UK£12.50n/a14
Sep ’25UK£15.61
UK£16.72
+7.1%
13.0%UK£19.60UK£12.50n/a14
Aug ’25UK£16.23
UK£16.68
+2.8%
13.0%UK£19.60UK£12.50n/a14
Jul ’25UK£17.69
UK£17.01
-3.8%
13.1%UK£19.60UK£12.50n/a14
Jun ’25UK£16.60
UK£16.70
+0.6%
12.5%UK£19.60UK£12.50n/a15
May ’25UK£15.60
UK£16.45
+5.4%
12.3%UK£19.60UK£12.50n/a14
Apr ’25UK£15.88
UK£16.02
+0.9%
10.4%UK£18.00UK£12.50n/a15
Mar ’25UK£14.98
UK£15.57
+3.9%
11.9%UK£18.00UK£12.20n/a15
Feb ’25UK£14.60
UK£15.55
+6.5%
13.3%UK£20.10UK£12.20n/a14
Jan ’25UK£13.60
UK£15.33
+12.7%
14.8%UK£20.10UK£11.50n/a14
Dec ’24UK£12.78
UK£15.29
+19.6%
15.5%UK£20.10UK£11.50n/a14
Nov ’24UK£12.82
UK£15.43
+20.4%
14.6%UK£20.10UK£11.50UK£17.2413
Oct ’24UK£14.59
UK£15.39
+5.4%
15.2%UK£20.10UK£11.30UK£15.4412
Sep ’24UK£15.02
UK£15.32
+2.0%
15.2%UK£20.10UK£11.30UK£15.6112
Aug ’24UK£14.88
UK£15.32
+2.9%
15.2%UK£20.10UK£11.30UK£16.2312
Jul ’24UK£14.16
UK£15.12
+6.8%
16.8%UK£20.10UK£11.30UK£17.6911
Jun ’24UK£13.86
UK£15.07
+8.7%
15.9%UK£20.10UK£11.30UK£16.6012
May ’24UK£13.37
UK£15.07
+12.7%
15.9%UK£20.10UK£11.30UK£15.6012
Apr ’24UK£12.96
UK£15.04
+16.0%
16.0%UK£20.10UK£11.30UK£15.8812
Mar ’24UK£12.24
UK£14.94
+22.0%
16.7%UK£20.10UK£10.70UK£14.9812
Feb ’24UK£12.21
UK£14.94
+22.3%
16.7%UK£20.10UK£10.70UK£14.6012
Jan ’24UK£11.84
UK£15.07
+27.2%
16.0%UK£20.10UK£11.50UK£13.6011
Dec ’23UK£13.06
UK£15.04
+15.2%
16.1%UK£20.10UK£11.50UK£12.7811
Nov ’23UK£11.55
UK£15.73
+36.2%
15.1%UK£20.10UK£11.50UK£12.8211

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

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