M.T.I Wireless Edge Ltd.

AIM:MWE Stock Report

Market Cap: UK£38.8m

M.T.I Wireless Edge Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: MWE (£0.45) is trading above our estimate of fair value (£0.37)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MWE. This is calculated by dividing MWE's market cap by their current earnings.
What is MWE's PE Ratio?
PE Ratio11.7x
EarningsUS$4.16m
Market CapUS$48.66m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MWE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average43.6x
FTC Filtronic
52.3xn/aUK£164.2m
TST Touchstar
11.6xn/aUK£7.0m
SPT Spirent Communications
92.8x40.5%UK£984.5m
SNX Synectics
17.5xn/aUK£52.9m
MWE M.T.I Wireless Edge
11.7x3.5%UK£38.8m

Price-To-Earnings vs Peers: MWE is good value based on its Price-To-Earnings Ratio (11.7x) compared to the peer average (43.6x).

Price to Earnings Ratio vs Industry

How does MWE's PE Ratio compare vs other companies in the European Communications Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MWE 11.7xIndustry Avg. 31.0xNo. of Companies7PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MWE is good value based on its Price-To-Earnings Ratio (11.7x) compared to the Global Communications industry average (31x).

Price to Earnings Ratio vs Fair Ratio

What is MWE'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.

MWE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.7x
Fair PE Ratio15.4x

Price-To-Earnings vs Fair Ratio: MWE is good value based on its Price-To-Earnings Ratio (11.7x) compared to the estimated Fair Price-To-Earnings Ratio (15.4x).

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 MWE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.45
UK£0.76
+69.4%
4.5%UK£0.80UK£0.73n/a2
Nov ’25UK£0.47
UK£0.76
+63.9%
4.5%UK£0.80UK£0.73n/a2
Oct ’25UK£0.51
UK£0.76
+50.9%
4.5%UK£0.80UK£0.73n/a2
Sep ’25UK£0.40
UK£0.77
+93.1%
3.4%UK£0.80UK£0.75n/a2
Aug ’25UK£0.39
UK£0.77
+101.3%
3.2%UK£0.80UK£0.75n/a2
Jul ’25UK£0.40
UK£0.77
+96.2%
3.2%UK£0.80UK£0.75n/a2
Jun ’25UK£0.45
UK£0.77
+74.1%
3.2%UK£0.80UK£0.75n/a2
May ’25UK£0.42
UK£0.78
+85.5%
2.6%UK£0.80UK£0.76n/a2
Apr ’25UK£0.46
UK£0.78
+69.1%
3.6%UK£0.81UK£0.75n/a2
Mar ’25UK£0.35
UK£0.76
+115.5%
2.2%UK£0.78UK£0.75n/a2
Feb ’25UK£0.37
UK£0.76
+106.7%
2.2%UK£0.78UK£0.75n/a2
Jan ’25UK£0.34
UK£0.77
+123.2%
2.9%UK£0.79UK£0.75n/a2
Dec ’24UK£0.34
UK£0.77
+129.9%
2.9%UK£0.79UK£0.75n/a2
Nov ’24UK£0.34
UK£0.92
+167.3%
2.3%UK£0.94UK£0.90UK£0.472
Oct ’24UK£0.44
UK£0.92
+109.6%
2.3%UK£0.94UK£0.90UK£0.512
Sep ’24UK£0.45
UK£0.90
+101.8%
0.02%UK£0.90UK£0.90UK£0.402
Aug ’24UK£0.43
UK£0.88
+103.3%
1.7%UK£0.90UK£0.87UK£0.392
Jul ’24UK£0.45
UK£0.90
+102.6%
0.3%UK£0.90UK£0.90UK£0.402
Jun ’24UK£0.48
UK£0.90
+87.8%
0.3%UK£0.90UK£0.90UK£0.452
May ’24UK£0.52
UK£0.90
+73.6%
0.1%UK£0.90UK£0.90UK£0.422
Apr ’24UK£0.51
UK£0.90
+76.1%
0.02%UK£0.90UK£0.90UK£0.462
Mar ’24UK£0.50
UK£0.90
+79.0%
0.8%UK£0.90UK£0.89UK£0.352
Feb ’24UK£0.52
UK£0.90
+73.8%
0.8%UK£0.90UK£0.89UK£0.372
Jan ’24UK£0.55
UK£0.90
+62.8%
0.8%UK£0.90UK£0.89UK£0.342
Dec ’23UK£0.55
UK£0.90
+62.8%
0.8%UK£0.90UK£0.89UK£0.342
Nov ’23UK£0.49
UK£0.95
+94.1%
4.8%UK£1.00UK£0.91UK£0.342

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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