Literacy Capital plc (BOOK) Fair Value & Analysis

Financial Services · GB · Market cap 180M GBX

A solid business, screening 36% undervalued on our models.

What matters now

• The price is below even our cautious bear case (£3.09). The market is more pessimistic than our downside scenario.
• Solid quality (54/100) at a price below fair value, the discount is the argument here, not the business quality.
• For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range £1.75 – £5.21 · fair‑value band £3.09 – £5.15 · the £3.02 price screens below the £4.12 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Literacy Capital plc (BOOK) currently trades at £3.02, while our model-based Fair Value estimate is £4.12, implying the stock looks roughly 36.4% undervalued today. The Quality Score stands at 54/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Literacy Capital plc generated revenue of £10.5M at a net margin of 7.1%. Revenue grew 19.2% year over year. It earns a return on equity of 0.3%. Net debt stands at £23.8M. Fundamentals as of Aug 13, 2026

Our scenario range runs from £3.09 (bear case) to £5.15 (bull case); at £3.02, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Financial Services peers we cover trades at -33% fair-value upside, at 36%, BOOK screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Multiples (£4.12) versus Asset-Based (£3.25). Highest evidence: P/B Multiple (55).

Key figures & financial health

Quality Score breakdown

About the company

Literacy Capital plc is a venture capital and private equity firm specializing in early stage investments, direct private equity investments, buyout, growth capital, MBIs, M&A, mature, family owned, fund investments and co investments with private equity managers. It also invest in private equity fund of fund investments. The firm is sector agnostic.

Full company description

Literacy Capital plc is a venture capital and private equity firm specializing in early stage investments, direct private equity investments, buyout, growth capital, MBIs, M&A, mature, family owned, fund investments and co investments with private equity managers. It also invest in private equity fund of fund investments. The firm is sector agnostic. It prefers to invest in communication services, consumer discretionary, consumer staples, energy, financials, healthcare, industrials, information technology, materials, real estate and utilities. The firm seeks to invest in United Kingdom. The firm seeks to invest in companies with EBITDA between £1 million ($1.36 Million) and £10 million ($13.64 Million) or for bolt-on acquisitions minimum £0.5 million ($0.68 million). The firm prefer to invest in majority or minority stakes. Literacy Capital plc was founded on 22 September 2017 and is based in London, United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Literacy Capital plc reported revenue of £6.0M in FY2025 versus £85.6M in FY2021, a compound −48.6%/yr. Reported net income was £743K in FY2025, compounding −68.9%/yr from FY2021.

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Peer Group

Asset Management · 690 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Asset Management median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.