Netcapital Inc.

NasdaqCM:NCPL Stock Report

Market Cap: US$1.3m

Netcapital Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: NCPL ($1.69) is trading below our estimate of fair value ($239.96)

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

Key Valuation Metric

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

Key metric: As NCPL is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for NCPL. This is calculated by dividing NCPL's market cap by their current revenue.
What is NCPL's PS Ratio?
PS Ratio0.4x
SalesUS$3.57m
Market CapUS$1.34m

Price to Sales Ratio vs Peers

How does NCPL's PS Ratio compare to its peers?

The above table shows the PS ratio for NCPL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.4x
LGCP Legion Capital
0.2xn/aUS$1.3m
GLAE GlassBridge Enterprises
3.5xn/aUS$702.4k
GEGP Gold Entertainment Group
5.9xn/aUS$3.4m
WNML.A Winmill
8xn/aUS$6.0m
NCPL Netcapital
0.4xn/aUS$1.3m

Price-To-Sales vs Peers: NCPL is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (4.4x).

Price to Sales Ratio vs Industry

How does NCPL's PS Ratio compare vs other companies in the US Capital Markets Industry?

24 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.3.3x5.8%
NCPL Netcapital
 0.4xn/aUS$1.34m
SNEX StoneX Group
0.04xn/aUS$3.11b
OPY Oppenheimer Holdings
0.5xn/aUS$619.16m
NCPL 0.4xIndustry Avg. 3.3xNo. of Companies24PS03.26.49.612.816+
24 CompaniesEstimated GrowthMarket Cap
Industry Avg.3.3x13.8%
NCPL Netcapital
 0.4xn/aUS$1.34m
No more companies

Price-To-Sales vs Industry: NCPL is good value based on its Price-To-Sales Ratio (0.4x) compared to the US Capital Markets industry average (3.3x).

Price to Sales Ratio vs Fair Ratio

What is NCPL'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.

NCPL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate NCPL's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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