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LSE · United Kingdom · Software - Application
The model's numbers as sentences. Every figure comes from the live data and your inputs, so the story changes when you change an input.
Priced for slower growth than it has delivered
At today's price of £11.64, the market is pricing in revenue growth of about 3.1% a year for FY26E–FY30E, holding the rest of your base case. The Sage Group plc's revenue grew 8.9% a year between FY22 and FY25, so the price asks for less than it has delivered.
Your base case assumes 7.7% revenue growth a year on average, more than the price implies, and values the shares at £14.77, 27% above today's price.
If your base case comes true, the whole business would return about 8.2% a year at today's price, 1.0 percentage points more than the 7.2% a year the model requires (the WACC).
About 66% of today's price pays for future growth. The other 34%, £3.94 a share, is what FY25 operating profit after tax is worth if it never grows.
Across 2,000 simulated futures around your base case, the middle 80% of values runs from £10.32 to £23.28 a share, and 80% of them are worth more than today's price.
Business health grade C (64 out of 100): shows a mixed picture and shows signs of financial distress, with 5 strengths and 1 red flag (top concern: balance sheet under strain).
Educational, not investment advice. “Favourable” means the numbers lean in today's price's favour; “Caution” means the price asks a lot of the future.
Every valuation range side by side, against today's price and the value estimate. Per share, in GBP.
| Range | Low | Mid | High |
|---|---|---|---|
| DCF scenarios (bear to bull) | £11.68 | £14.77 | £18.26 |
| DCF sensitivity (WACC and g ±1 point) | £9.76 | £14.77 | £28.73 |
| Monte Carlo (middle 80% of 2,000 runs) | £10.32 | £14.83 | £23.28 |
| EV/EBITDA comps (25th to 75th percentile) | – | – | – |
| P/E comps (25th to 75th percentile) | – | – | – |
| Analyst targets (19 analysts, low to high) | £8.50 | £11.48 | £14.00 |
| 52-week share price (trading range) | £7.72 | – | £11.99 |
Is this a good, honest business, not just a cheap one? Published screens on the reported annual accounts (FY22–FY25), plus plain ratios. Screens, not verdicts: read the accounts before relying on any of them.
Grade C (64/100): shows a mixed picture and shows signs of financial distress, with 5 strengths and 1 red flag (top concern: balance sheet under strain).
F-score by year: FY23 6/9 · FY24 6/9
| Ratio | Value | Weight | Adds |
|---|---|---|---|
| Working capital ÷ total assets | -0.133 | 6.56 | -0.87 |
| Retained earnings ÷ total assets | 0.143 | 3.26 | 0.47 |
| Operating profit (EBIT) ÷ total assets | 0.143 | 6.72 | 0.96 |
| Book equity ÷ total liabilities | 0.241 | 1.05 | 0.25 |
FY25 figures. Safe above 2.60, grey zone 1.10 to 2.60, distress below 1.10.
Z'' by year: FY22 0.89 · FY23 1.55 · FY24 1.61
| Index | Value | Manipulators | Others |
|---|---|---|---|
| Receivables growing faster than sales (DSRI) | 1.068 | 1.465 | 1.031 |
| Gross margin slipping (GMI) | 1.001 | 1.193 | 1.014 |
| More hard-to-value assets (AQI) | 1.019 | 1.254 | 1.039 |
| Sales growth (SGI) | 1.078 | 1.607 | 1.134 |
| Depreciation slowing (DEPI) | 1.224 | 1.077 | 1.001 |
| Overheads vs sales (SGAI) | 0.976 | 1.041 | 1.054 |
| Profit not backed by cash, ÷ assets (TATA) | -0.043 | 0.031 | 0.018 |
| Leverage rising (LVGI) | 1.165 | 1.111 | 1.037 |
FY25 against FY24. Above −1.78 the pattern resembles companies later found to have manipulated earnings; some analysts use a stricter −2.22.
Piotroski F-score (Joseph Piotroski, 2000): nine pass-or-fail tests of profitability, debt, liquidity and efficiency, each comparing the latest year with the one before. 7 or more is strong; 3 or fewer is weak.
Altman Z'' (Edward Altman, 1995, the version for non-manufacturers and emerging markets): combines working capital, retained earnings, operating profit and book equity relative to the balance sheet. Above 2.60 is the safe zone, below 1.10 the distress zone.
Beneish M-score (Messod Beneish, 1999): eight ratios that, in his study, separated companies later found to have manipulated earnings. Above −1.78 resembles that pattern. It is a prompt to read the notes to the accounts, not an accusation.
Grade: a 0 to 100 blend (Piotroski 40%, Altman 20%, Beneish 15%, the ratios 25%, re-weighted when a part is missing): A from 80, B from 65, C from 50, D from 35, E below.
All three screens were built on US companies and annual accounts from Yahoo Finance, which can be incomplete. Lenders, insurers and holding companies get financial-firm ratios instead of the Altman and Beneish screens.
Price targets and ratings from the brokers' analysts who cover the stock, as Yahoo collects them. Their opinion, not this app's; set against the model so you can see where you differ.
19 analysts' average 12-month target is £11.48, -1.4% against today's £11.64 (median £11.60). The range runs from £8.50 to £14.00.
Your value estimate of £14.80 is 29% above the analysts' average: a big gap is worth explaining, it usually comes down to growth or margin assumptions.
Targets are usually for 12 months ahead and tend to run optimistic; brokers that cover a company often do business with it. Counts and targets come from different updates, so they may not match exactly.
How much the shares have swung and how far they have fallen over five years. Risk repeats far more reliably than direction, so this is the honest kind of forecast: how far the price may move, not which way.
Loading five years of prices…
A reverse DCF: the constant revenue growth, or the constant EBIT margin, that makes the DCF equal today's price, holding everything else in your base case.
The yearly return on the whole business at today's price if your base case comes true, against the return the model requires and what a government bond pays.
If your base case comes true, today's price earns about 8.2% a year, 1.0 percentage points more than the 7.2% the model requires.
Every £100 of share price buys £3.67 of today's profit a year, less than the £4.93 of interest the bond pays: the price counts on profits growing.
Expected return (an internal rate of return). Imagine buying the whole company at today's price: its shares and its debt, less its cash. The expected return is the yearly rate that makes the free cash flows in your base case, plus the value after FY30E growing at 3.0%, add up to exactly today's price. When it is above the WACC, the price sits below your DCF value. It only comes true if the forecast does.
Earnings power value. What the business is worth if its last reported operating profit never grows or shrinks (a simplified version of Bruce Greenwald's method). It treats depreciation as the spending needed to stand still, and uses reported rather than average profit, so one unusual year moves it.
Earnings yield is the profit a year you buy with each unit of price (the P/E turned upside down). Free cash flow yield is the same idea with next year's forecast cash flow.
| Measure | Value |
|---|---|
| Expected return (IRR), base case | 8.2% |
| Required return (WACC) | 7.2% |
| Expected minus required | +1.0 pts |
| Cost of equity | 7.6% |
| 10-year government bond | 4.9% |
| Earnings power value per share | £3.94 |
| Share of price paying for growth | 66% |
| Earnings yield | 3.7% |
| Free cash flow yield | 5.0% |
Revenue path for each scenario and its value per share with the same WACC and terminal growth.
| Revenue, GBP mn | FY22 | FY23 | FY24 | FY25 | FY26E | FY27E | FY28E | FY29E | FY30E |
|---|---|---|---|---|---|---|---|---|---|
| Reported | 1,947 | 2,184 | 2,332 | 2,513 | |||||
| Bear | 2,686 | 2,853 | 2,990 | 3,092 | 3,153 | ||||
| Base | 2,762 | 3,016 | 3,251 | 3,459 | 3,632 | ||||
| Bull | 2,837 | 3,183 | 3,527 | 3,859 | 4,167 |
2,000 simulated futures around your base case. Each run shifts growth, margin, WACC and terminal growth at random using the spreads below (one standard deviation).
FCF = EBIT × (1 − tax) + D&A − capex − increase in working capital, discounted at the WACC from today to each fiscal year end.
| GBP mn | FY26E | FY27E | FY28E | FY29E | FY30E |
|---|---|---|---|---|---|
| Revenue | 2,762 | 3,016 | 3,251 | 3,459 | 3,632 |
| EBIT | 583 | 636 | 686 | 730 | 766 |
| NOPAT = EBIT × (1 − tax) | 443 | 484 | 521 | 555 | 582 |
| + D&A | 130 | 142 | 153 | 163 | 171 |
| − Capex | 52.5 | 57.3 | 61.8 | 65.7 | 69.0 |
| − Increase in working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Free cash flow | 520 | 568 | 612 | 652 | 684 |
| Present value | 520 | 533 | 536 | 532 | 521 |
| Years to year end (t) | 0.00 | 0.91 | 1.91 | 2.91 | 3.91 |
Enterprise value plus cash, minus debt, leases, minority interests and cash already returned to shareholders since the balance sheet, divided by the shares.
All amounts in GBP mn. Dividends with ex-dates after 2025-09-30: 2026-01-08 (0.14 per share), 2026-06-04 (0.08 per share); about 55 million shares bought back since then, valued at today's price.
DCF value per share, base case. Blue cells sit above today's price, red cells below; the outlined cell is your current pair.
| g ↓ · WACC → | 6.23% | 6.73% | 7.23% | 7.73% | 8.23% |
|---|---|---|---|---|---|
| 2.0% | £15.20 | £13.41 | £11.96 | £10.76 | £9.76 |
| 2.5% | £17.22 | £14.98 | £13.21 | £11.79 | £10.61 |
| 3.0% | £19.87 | £16.98 | £14.77 | £13.02 | £11.61 |
| 3.5% | £23.49 | £19.59 | £16.73 | £14.55 | £12.83 |
| 4.0% | £28.73 | £23.15 | £19.31 | £16.49 | £14.34 |
Found from Yahoo's related stocks in the same industry; multiples rebuilt here so currencies match. Untick a peer to drop it, or add your own.
No peers found automaticallyAdd two or more companies from the same industry below, so the peer value can be calculated.
| Company | In median | EV/EBITDA | P/E | EV/Sales | P/B | Op. margin | Rev. growth |
|---|---|---|---|---|---|---|---|
| Median of included | 0 | – | – | – | – | ||
| The Sage Group plc | – | 18.6x | 27.2x | 4.4x | 15.4x | 21.1% | 7.8% |
| Implied value per share | 25th pct | Median | 75th pct |
|---|---|---|---|
| EV/EBITDA × EBITDA + net cash | – (–) | – (–) | – (–) |
| P/E × earnings per share | – (–) | – (–) | – (–) |
| P/B × book value per share | – (–) | – (–) | – (–) |
| EV/Sales × revenue + net cash (check only) | – (–) | – (–) | – (–) |
| Peer value (average of median EV/EBITDA and median P/E prices) | – |
Is today's multiple high or low for this stock? Its P/E (price ÷ earnings per share) or P/B (price ÷ book value per share) month by month, against the range it has traded in.
Loading ten years of monthly prices…
Three pieces of evidence that lead to a view. The client summary button copies all of this as text.
The Sage Group plc (SGE.L), valuation summary, 1 Nov 2026 Value estimate £14.80 (+27.2% vs today's price of £11.64). • DCF (base case): £14.77 per share. WACC 7.23%, terminal growth 3.0%; terminal value is 83% of enterprise value. • Peers: – per share (average of median EV/EBITDA and median P/E prices; 0 peers). • Scenarios: bear £11.68, base £14.77, bull £18.26; probability-weighted £14.87. • What the price implies: 3.1% revenue growth a year for FY26E–FY30E, against 7.7% in this forecast. • Monte Carlo: 80% of 2,000 simulated outcomes are above today's price; middle 80% £10.32 to £23.28. • Key assumptions (base): revenue growth 9.9% → 9.2% → 7.8% → 6.4% → 5.0%; EBIT margin 21.1% to 21.1%; tax 24.0%. • Checks: to review: At least three peers are in the medians; The forecast starts after the last reported year. Data: Yahoo Finance via yahoo-finance2 (unofficial; delayed prices), as of 1 Nov 2026. Educational model, not investment advice.
5 pass, 2 to review.
What the model uses, from Yahoo Finance via yahoo-finance2 (unofficial; delayed prices). Edit any number that looks wrong; your edits stay in this browser and are marked.
| GBP mn | FY22 | FY23 | FY24 | FY25 | Avg ratio |
|---|---|---|---|---|---|
| Revenue | growth 8.9% | ||||
| EBIT (operating profit) | margin 18.0% | ||||
| D&A | 4.7% | ||||
| Profit before tax | |||||
| Tax | rate 24.0% | ||||
| Capex | 1.9% | ||||
| Increase in working capital | -9.7% of Δrev |
| Cash and short-term investments (GBP mn) | |
| Borrowings (GBP mn) | |
| Lease liabilities (GBP mn) | |
| Minority interests (GBP mn) | |
| Dividends since the balance sheet (GBP mn) |
| Revenue, trailing 12 months (GBP mn) | |
| EBITDA, trailing 12 months (GBP mn) | |
| Net income, trailing 12 months (GBP mn) | |
| Shares outstanding (mn) |
FY labels follow Indian fiscal years ending in March. Shares: 900,608,595. Price £11.64 at Fri, 30 Oct 2026 16:47:04 GMT.