Spirent Communications plc

LSE:SPT Stock Report

Market Cap: UK£978.2m

Spirent Communications Valuation

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

Below Fair Value: SPT (£1.69) is trading above our estimate of fair value (£0.58)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SPT 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/Revenue2.5x
Enterprise Value/EBITDA28x
PEG Ratio2.3x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SPT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28.3x
FTC Filtronic
50.9xn/aUK£150.0m
MWE M.T.I Wireless Edge
12.4x3.5%UK£40.1m
RPI Raspberry Pi Holdings
26.7x4.3%UK£638.3m
OXIG Oxford Instruments
23.3x10.6%UK£1.2b
SPT Spirent Communications
93.6x40.5%UK£978.2m

Price-To-Earnings vs Peers: SPT is expensive based on its Price-To-Earnings Ratio (93.6x) compared to the peer average (28.3x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a58.5%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a58.5%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: SPT is expensive based on its Price-To-Earnings Ratio (93.6x) compared to the European Communications industry average (28.5x).

Price to Earnings Ratio vs Fair Ratio

What is SPT'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.

SPT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio93.6x
Fair PE Ratio52.3x

Price-To-Earnings vs Fair Ratio: SPT is expensive based on its Price-To-Earnings Ratio (93.6x) compared to the estimated Fair Price-To-Earnings Ratio (52.3x).

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 SPT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.69
UK£2.03
+20.3%
8.2%UK£2.25UK£1.85n/a3
Nov ’25UK£1.70
UK£2.03
+19.6%
8.2%UK£2.25UK£1.85n/a3
Oct ’25UK£1.71
UK£2.03
+18.7%
8.2%UK£2.25UK£1.85n/a3
Sep ’25UK£1.78
UK£2.03
+14.2%
8.2%UK£2.25UK£1.85n/a3
Aug ’25UK£1.73
UK£2.08
+20.6%
11.2%UK£2.40UK£1.85n/a3
Jul ’25UK£1.83
UK£2.08
+13.8%
11.2%UK£2.40UK£1.85n/a3
Jun ’25UK£1.84
UK£2.08
+13.3%
11.2%UK£2.40UK£1.85n/a3
May ’25UK£1.91
UK£2.20
+14.9%
9.3%UK£2.40UK£1.99n/a2
Apr ’25UK£2.00
UK£2.06
+3.1%
16.4%UK£2.40UK£1.73n/a2
Mar ’25UK£1.09
UK£1.56
+43.1%
15.7%UK£1.95UK£1.20n/a5
Feb ’25UK£1.18
UK£1.56
+32.2%
15.7%UK£1.95UK£1.20n/a5
Jan ’25UK£1.23
UK£1.53
+24.0%
20.5%UK£1.95UK£1.00n/a5
Dec ’24UK£1.10
UK£1.33
+21.0%
29.4%UK£1.95UK£0.95n/a6
Nov ’24UK£0.94
UK£1.33
+41.6%
29.4%UK£1.95UK£0.95UK£1.706
Oct ’24UK£1.38
UK£2.29
+65.6%
27.0%UK£3.40UK£1.50UK£1.717
Sep ’24UK£1.54
UK£2.29
+48.5%
27.0%UK£3.40UK£1.50UK£1.787
Aug ’24UK£1.68
UK£2.33
+38.7%
22.9%UK£3.40UK£1.70UK£1.737
Jul ’24UK£1.64
UK£2.33
+42.4%
22.9%UK£3.40UK£1.70UK£1.837
Jun ’24UK£1.79
UK£2.35
+31.6%
21.4%UK£3.40UK£1.70UK£1.848
May ’24UK£1.80
UK£2.36
+30.9%
21.4%UK£3.40UK£1.70UK£1.918
Apr ’24UK£1.73
UK£2.36
+36.3%
21.0%UK£3.40UK£1.75UK£2.008
Mar ’24UK£2.15
UK£2.77
+28.9%
18.3%UK£3.50UK£2.04UK£1.098
Feb ’24UK£2.22
UK£2.77
+24.7%
18.3%UK£3.50UK£2.04UK£1.188
Jan ’24UK£2.60
UK£2.95
+13.4%
18.0%UK£3.80UK£2.22UK£1.236
Dec ’23UK£2.84
UK£2.95
+3.9%
18.0%UK£3.80UK£2.22UK£1.106
Nov ’23UK£2.63
UK£2.95
+12.2%
17.9%UK£3.80UK£2.22UK£0.946

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

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