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Estimated Discount To Fair Value: 27.9%

Ibstock, priced at £1.58, is valued below its calculated fair value of £2.19, indicating potential undervaluation based on cash flow analyses. Although its dividend coverage by earnings and cash flows is weak, the company's earnings are expected to grow 26.41% annually over the next three years—twice the rate of the UK market average (13.1%). However, recent events include a dividend cut to 3.6 pence per share as approved in their last AGM on May 16, 2024.

• Our expertly prepared growth report on Ibstock implies its future financial outlook may be stronger than recent results.

• Delve into the full analysis health report here for a deeper understanding of Ibstock.

Sage Group

Overview: The Sage Group plc, a company specializing in technology solutions and services for small and medium businesses across the U.S., the U.K., France, and globally, has a market capitalization of approximately £10.55 billion.

Operations: Sage Group's revenue is primarily generated from North America (£1.01 billion), Europe (£0.60 billion), and the United Kingdom & Ireland (£0.49 billion).

Estimated Discount To Fair Value: 29.5%

Sage Group, priced at £10.57, trades below its estimated fair value of £14.99, highlighting potential undervaluation based on discounted cash flows. Its earnings have expanded by 28.4% over the past year and are projected to grow by 14.32% annually. Despite this growth, Sage's revenue increase of 8.2% per year is modest compared to higher market expectations but still outpaces the UK market forecast of 3.7%. Recent product enhancements in Sage Estimating and Intacct aim to boost operational efficiencies and financial control for users, potentially strengthening future revenue streams.

• Our growth report here indicates Sage Group may be poised for an improving outlook.

• Click to explore a detailed breakdown of our findings in Sage Group's balance sheet health report.

Key Takeaways

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include AIM:KWS LSE:IBST and LSE:SGE.

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