Stock Valuation: XLMedia Plc (XLM)

Name of Company Country of Origin/ Exchange Traded Sector Stock Price
XLMEDIA PLC Jersey/
LSE
Consumer Cyclical – Advertising & Marketing Services – Marketing Services GBP0.97
@ 26 Sep 2018
COMPANY PROFILE XLMedia PLC is a digital publisher and marketing company which attracts paying users from different online channels and directs them to online gambling operators. It operates through three segments: Publishing, Media and Partners Network.

XLMedia PLC is a digital publisher and marketing company which attracts paying users from different online channels and directs them to online gambling operators. It operates through three segments: Publishing, Media and Partners Network. Publishing segment owns over 2,000 informational Websites in approximately 17 languages whereas Media segment acquires online and mobile advertising and Partners Network segment manages marketing partners. Based on the internet user location, the firm generates most of its revenue from Scandinavia (Europe).

Stock Code XLM
Stock Valuation Below

XLMedia Price to Sales

The Price to Sales Ratio is a commonly used valuation indicator for a stock. While not as popular as the Price to Earnings Ratio, it overcomes some of the limitations of the PE Ratio in that it can be used even when the company is not making a profit or only making minimal profits. However, it should not be used by itself because a company may be achieving sales but not profits.
At the price of GBP0.97 as at 26 Sep 2018, Xlmedia Plc is trading at a Price to Sales Ratio of 2.1 times last 12 months sales.  This is a 22.0% discount to current fair Price to Sales Ratio of 2.7 times.
Is the stock undervalued? One should not just look at one indicator to determine the fair value of a stock.
ProThinker believes in using a combination of valuation methods to decide whether a stock is over or undervalued? The five ratios we use are Price to Earnings, Price to Sales, Price to Cash Flow, Price to Book and Dividend Yield. We use multiple methods to value a stock because each has its benefits as well as shortcomings. Price to Earnings and Price to Cash Flow Ratios relate stock price to profitability but are meaningless when the comany has negative earnings or cash flows. Price to Sales Ratio is more stable because sales are never negative. However, this does not tell us whether the company is able to sell profitably. Price to Book Ratio gives us an indication as to how much we are paying for the company’s assets but it is not directly related to the company’s profitability. Dividend Yield cannot be used for companies that are paying little to no dividends.
While it is important to value stocks based on multiple valuation methods, this often leads to differing views on valuation. One indicator may suggest that a stock is overvalued while another suggest that it is undervalued. This does not help an investor who needs to make a definite decision whether to buy, hold or sell the stock. That is why we advocate the use of a Composite Valuation Indicator, which is derived from the best combination of the five indicators above. A Composite Valuation Indicator will give you ONE conclusion on whether a stock is under or over valued.
To find out more about our valuation methodology, click here. 
Source of Data: Company description, historical financial statements data and price data are from gurufocus.com or moneycontrol.com. Estimates are from marketscreener.com – Thomson Reuters.
Disclaimer: This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither ProThinker nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of ProThinker. Copyright(c) 2018. All rights reserved.

 

Stock Valuation: Hays Plc (HAS)

Name of Company Country of Origin/ Exchange Traded Sector Stock Price
HAYS PLC UK/
LSE
Industrials – Employment Services – Staffing & Outsourcing Services GBP2.07
@ 26 Sep 2018
COMPANY PROFILE Hays PLC is a staffer and recruiting agency. The firm offers recruitment services for temporary, contractor, and permanent roles in the information technology, accounting and finance, construction and property, and engineering, and office support sectors.

Hays PLC is a British staffer and recruiting agency. The company offers recruitment services for temporary, contractor, and permanent roles in the information technology, accounting and finance, construction and property, engineering, and office support sectors. The revenue generated through fees is equally split between permanent and temporary contract types. The largest end market for Hays is Continental Europe and the rest of the world, followed by the United Kingdom and Ireland.

Stock Code HAS
Valuation Analysis Below

Hays Price to EBIT

The Price Earnings (PE) Ratio is the most frequently used valuation indicator for a stock. However, there are times when this ratio cannot be used e.g. when the company reports a loss or profit is so minimal that it results in an abnormally high PE Ratio. Or Net Profit After Tax may be volatile and it is better to use Earnings Before Interest and Tax (EBIT) to value the company. We use the PE Band or Price/EBIT Band to show whether a stock is overvalued or undervalued based on its historical valuation.
At the price of GBP2.07 as at 26 Sep 2018, Hays Plc is trading at a Market Cap/EBIT Ratio of 12.0 times last 12 months earnings.  This is a 3.3% premium to its current fair P/EBIT Ratio of 11.6 times. (Price based on the fair Price/EBIT Ratio of the company is indicated by the red line.)
Is the stock overvalued? One should not just look at one indicator to determine the fair value of a stock.
ProThinker believes in using a combination of valuation methods to decide whether a stock is over or undervalued? The five ratios we use are Price to Earnings, Price to Sales, Price to Cash Flow, Price to Book and Dividend Yield. We use multiple methods to value a stock because each has its benefits as well as shortcomings. Price to Earnings and Price to Cash Flow Ratios relate stock price to profitability but are meaningless when the comany has negative earnings or cash flows. Price to Sales Ratio is more stable because sales are never negative. However, this does not tell us whether the company is able to sell profitably. Price to Book Ratio gives us an indication as to how much we are paying for the company’s assets but it is not directly related to the company’s profitability. Dividend Yield cannot be used for companies that are paying little to no dividends.
While it is important to value stocks based on multiple valuation methods, this often leads to differing views on valuation. One indicator may suggest that a stock is overvalued while another suggest that it is undervalued. This does not help an investor who needs to make a definite decision whether to buy, hold or sell the stock. That is why we advocate the use of a Composite Valuation Indicator, which is derived from the best combination of the five indicators above. A Composite Valuation Indicator will give you ONE conclusion on whether a stock is under or over valued.
To find out more about our valuation methodology, click here. 
Source of Data: Company description, historical financial statements data and price data are from gurufocus.com or moneycontrol.com. Estimates are from marketscreener.com – Thomson Reuters.
Disclaimer: This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither ProThinker nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of ProThinker. Copyright(c) 2018. All rights reserved.

 

Stock Valuation: Cineworld Group Plc (CINE)

Name of Company Country of Origin/ Exchange Traded Sector Stock Price
CINEWORLD GROUP PLC UK/
LSE
Consumer Cyclical – Entertainment – Media – Diversified GBP3.14
@ 25 Sep 2018
COMPANY PROFILE Cineworld Group PLC is a diversified media company. Its main business is the operation of cinema theatres under chain brands such as Cineworld Cinemas, Cinema City, Picture House, and Yes Planet.

Cineworld Group PLC is a diversified media company, which operates chains of movie theaters. The company divides its business segments into the U.K. & Ireland and Central Europe & Israel. The business operates theater chain brands such as Cineworld Cinemas, Cinema City, Picture House, and Yes Planet. Cineworld generates revenue through both ticket sales and food, beverage, and merchandise sales. Cinema Group generates additional revenue through other segments such as retail & screen advertising revenue and the property market and development. The company generates the vast majority of its revenue in the U.K., Ireland, and Central Europe.

Stock Code CINE
Valuation Analysis Below

Cineworld Price to EBIT

The Price Earnings (PE) Ratio is the most frequently used valuation indicator for a stock. However, there are times when this ratio cannot be used e.g. when the company reports a loss or profit is so minimal that it results in an abnormally high PE Ratio. Or Net Profit After Tax may be volatile and it is better to use Earnings Before Interest and Tax (EBIT) to value the company. We use the PE Band or Price/EBIT Band to show whether a stock is overvalued or undervalued based on its historical valuation.
At the price of GBP3.14 as at 25 Sep 2018, Cineworld Group Plc is trading at a Market Cap/EBIT Ratio of 9.3 times last 12 months earnings.  This is a 39.2% discount to its current fair P/EBIT Ratio of 15.4 times. (Price based on the fair Price/EBIT Ratio of the company is indicated by the red line.)
Is the stock undervalued? One should not just look at one indicator to determine the fair value of a stock.
ProThinker believes in using a combination of valuation methods to decide whether a stock is over or undervalued? The five ratios we use are Price to Earnings, Price to Sales, Price to Cash Flow, Price to Book and Dividend Yield. We use multiple methods to value a stock because each has its benefits as well as shortcomings. Price to Earnings and Price to Cash Flow Ratios relate stock price to profitability but are meaningless when the comany has negative earnings or cash flows. Price to Sales Ratio is more stable because sales are never negative. However, this does not tell us whether the company is able to sell profitably. Price to Book Ratio gives us an indication as to how much we are paying for the company’s assets but it is not directly related to the company’s profitability. Dividend Yield cannot be used for companies that are paying little to no dividends.
While it is important to value stocks based on multiple valuation methods, this often leads to differing views on valuation. One indicator may suggest that a stock is overvalued while another suggest that it is undervalued. This does not help an investor who needs to make a definite decision whether to buy, hold or sell the stock. That is why we advocate the use of a Composite Valuation Indicator, which is derived from the best combination of the five indicators above. A Composite Valuation Indicator will give you ONE conclusion on whether a stock is under or over valued.
To find out more about our valuation methodology, click here. 
Source of Data: Company description, historical financial statements data and price data are from gurufocus.com or moneycontrol.com. Estimates are from marketscreener.com – Thomson Reuters.
Disclaimer: This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither ProThinker nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of ProThinker. Copyright(c) 2018. All rights reserved.

 

Stock Valuation: Sage Group Plc (SGE)

Name of Company Country of Origin/ Exchange Traded Sector Stock Price
SAGE GROUP (THE) PLC UK/
LSE
Technology – Application Software – Software – Application GBP5.75
@ 25 Sep 2018
COMPANY PROFILE Sage Group (The) PLC is a global supplier of accounting and business management software. It serves medium-sized and smaller businesses in the areas of accounting, enterprise resource planning, payroll, and accountancy related software.

Sage Group (The) PLC is a global supplier of accounting and business management software. The firm caters primarily to the needs of small to medium businesses; about 80% of its clients have fewer than 25 employees. Sage has more than 6 million customers worldwide, employs over 13,000 people, and generates more than GBP 1.7 billion in revenue. The company was formed in 1981 and was floated on the London Stock Exchange in 1989.

Stock Code SGE
Valuation Analysis Below

Sage Group PE

The Price Earnings (PE) Ratio is the most frequently used valuation indicator for a stock. However, there are times when this ratio cannot be used e.g. when the company reports a loss or profit is so minimal that it results in an abnormally high PE Ratio. Or Net Profit After Tax may be volatile and it is better to use Earnings Before Interest and Tax (EBIT) to value the company. We use the PE Band or Market Cap/EBIT Band to show whether a stock is overvalued or undervalued based on its historical valuation.
At the price of GBP5.75 as at 25 Sep 2018, Sage Group (The) Plc is trading at a PE Ratio of 19.1 times last 12 months earnings.  This is a 14.9% discount to current fair Price to Earnings Ratio of 22.4 times. (Price based on the historical average PE of the company is indicated by the red line.)
Is the stock undervalued? One should not just look at one indicator to determine the fair value of a stock.
ProThinker believes in using a combination of valuation methods to decide whether a stock is over or undervalued? The five ratios we use are Price to Earnings, Price to Sales, Price to Cash Flow, Price to Book and Dividend Yield. We use multiple methods to value a stock because each has its benefits as well as shortcomings. Price to Earnings and Price to Cash Flow Ratios relate stock price to profitability but are meaningless when the comany has negative earnings or cash flows. Price to Sales Ratio is more stable because sales are never negative. However, this does not tell us whether the company is able to sell profitably. Price to Book Ratio gives us an indication as to how much we are paying for the company’s assets but it is not directly related to the company’s profitability. Dividend Yield cannot be used for companies that are paying little to no dividends.
While it is important to value stocks based on multiple valuation methods, this often leads to differing views on valuation. One indicator may suggest that a stock is overvalued while another suggest that it is undervalued. This does not help an investor who needs to make a definite decision whether to buy, hold or sell the stock. That is why we advocate the use of a Composite Valuation Indicator, which is derived from the best combination of the five indicators above. A Composite Valuation Indicator will give you ONE conclusion on whether a stock is under or over valued.
To find out more about our valuation methodology, click here. 
Source of Data: Company description, historical financial statements data and price data are from gurufocus.com or moneycontrol.com. Estimates are from marketscreener.com – Thomson Reuters.
Disclaimer: This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither ProThinker nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of ProThinker. Copyright(c) 2018. All rights reserved.

 

Stock Valuation: Ferrexpo Plc (FXPO)

Name of Company Country of Origin/ Exchange Traded Sector Stock Price
FERREXPO PLC Switzerland/
LSE
Basic Materials – Steel – Steel GBP1.86
@ 25 Sep 2018
COMPANY PROFILE Ferrexpo PLC is engaged in mining, processing and selling of iron ore pellets to the steel industry. It produces blast furnace pellets with iron grade.

Ferrexpo PLC is engaged in mining, processing and selling of iron ore pellets to the steel industry. It produces blast furnace pellets with iron grade. The company exports all of its production to the countries in Europe and Asia including Austria, Japan, Germany, South Korea, Slovakia, Turkey, China, as well as other European and Asian countries. It generates the maximum revenue from Central Europe region

Stock Code FXPO
Valuation Analysis Below

Ferrexpo Price to EBIT

The Price Earnings (PE) Ratio is the most frequently used valuation indicator for a stock. However, there are times when this ratio cannot be used e.g. when the company reports a loss or profit is so minimal that it results in an abnormally high PE Ratio. Or Net Profit After Tax may be volatile and it is better to use Earnings Before Interest and Tax (EBIT) to value the company. We use the PE Band or Price/EBIT Band to show whether a stock is overvalued or undervalued based on its historical valuation.
At the price of GBP1.86 as at 25 Sep 2018, Ferrexpo Plc is trading at a Market Cap/EBIT Ratio of 3.5 times last 12 months earnings.  This is a 1.7% discount to its current fair P/EBIT Ratio of 3.5 times. (Price based on the historical average Market Cap/EBIT Ratio of the company is indicated by the red line.)
Is the stock undervalued? One should not just look at one indicator to determine the fair value of a stock.
ProThinker believes in using a combination of valuation methods to decide whether a stock is over or undervalued? The five ratios we use are Price to Earnings, Price to Sales, Price to Cash Flow, Price to Book and Dividend Yield. We use multiple methods to value a stock because each has its benefits as well as shortcomings. Price to Earnings and Price to Cash Flow Ratios relate stock price to profitability but are meaningless when the comany has negative earnings or cash flows. Price to Sales Ratio is more stable because sales are never negative. However, this does not tell us whether the company is able to sell profitably. Price to Book Ratio gives us an indication as to how much we are paying for the company’s assets but it is not directly related to the company’s profitability. Dividend Yield cannot be used for companies that are paying little to no dividends.
While it is important to value stocks based on multiple valuation methods, this often leads to differing views on valuation. One indicator may suggest that a stock is overvalued while another suggest that it is undervalued. This does not help an investor who needs to make a definite decision whether to buy, hold or sell the stock. That is why we advocate the use of a Composite Valuation Indicator, which is derived from the best combination of the five indicators above. A Composite Valuation Indicator will give you ONE conclusion on whether a stock is under or over valued.
To find out more about our valuation methodology, click here. 
Source of Data: Company description, historical financial statements data and price data are from gurufocus.com or moneycontrol.com. Estimates are from marketscreener.com – Thomson Reuters.
Disclaimer: This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither ProThinker nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of ProThinker. Copyright(c) 2018. All rights reserved.