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BlackRock Smaller Companies Trust plc (BRSC) Fair Value & Analysis

Financial Services · GB · Market cap 660M GBX

BS BlackRock Smaller Companies Trust plc BRSC · LSE
Price£2.69
Fair Value£3.45
Upside+28.3%
Quality77/100
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Weak Growth
Highly profitable · 89.7% net margin
Low debt · generates free cash flow
3.30% dividend yield
Mixed vs. peers (8/14)
Wide moat 67/100
Evidence: High Range £2.58 – £4.31 Share as image

Fair value as of: Jul 18, 2026

From 12 valuation models · updated 23 days ago

Fair value updated Jul 18, 2026, revised from £4.43 to £3.45 (−22.1%) since Jun 26, 2026. Share price +7.8% over the past month.

A strong business, screening 28% undervalued on our models.

What matters now

  • The rarer combination: high quality (77/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

£3.63 £1.96 Fair Value £3.45 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range £1.96 – £3.63 · fair‑value band £2.58 – £4.31 · the £2.69 price screens below the £3.45 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

BlackRock Smaller Companies Trust plc (BRSC) currently trades at £2.69, while our model-based Fair Value estimate is £3.45, implying the stock looks roughly 28.3% undervalued today. The Quality Score stands at 77/100 (high 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: high), always confirm before acting.

Revenue declined 60.9% year over year. It earns a return on equity of -13.4%. Net debt stands at £33.7M. The stock trades on a trailing P/E of 9.1. Fundamentals as of Jul 18, 2026

Our scenario range runs from £2.58 (bear case) to £4.31 (bull case); at £2.69, the current price sits within 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 -12% fair-value upside, at 28%, BRSC 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.

Model BearBaseBull Evidence
Highest evidence
Growth DCF £6.03 £10.59 £17.74 80
Residual Income £2.03 £2.20 £2.66 76
Gordon GGM £0.5900 £1.07 £1.47 70
All 12 models by family
DCF Models
Owner Earnings £2.20 £4.80 £9.62 31
5Y P/E Exit £3.58 £6.94 £11.29 38
10Y P/E Exit £4.57 £8.42 £14.23 35
Earnings-Based
Graham-Dodd £1.67 £11.63 £16.33 54
Lynch FV £6.01 £8.59 £11.16 50
Dividend Discount
Gordon GGM £0.5900 £1.07 £1.47 70
DDM Multi-Stage £0.5900 £0.9800 £1.14 61
Multiples
P/E Multiple £2.39 £3.19 £3.99 63
P/B Multiple £2.58 £3.45 £4.31 55
Asset-Based
NCAV (Graham) £1.23 £1.65 £2.46 50
Growth DCF
Growth DCF £6.03 £10.59 £17.74 80
Economic Profit
Residual Income £2.03 £2.20 £2.66 76

Widest divergence: Growth DCF (£10.59) versus Dividend Discount (£0.9800). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) −83.4M GBX
Revenue growth (YoY) -60.9%
Return on equity -13.4%
Free cash flow 120M GBX FY2026
P/E ratio 9.1
Operating margin 95.0%
More key figures
EPS (TTM) £-1.89
Dividend yield 3.4%
EPS growth (YoY) -57.4%
Net debt 33.7M GBX FY2026

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 77/100

Of which business quality 74 · Market factors (momentum, volatility) 64

Profitability 44
Margins and returns on capital today
Quality Growth 60
Are margins and returns improving?
Cashflow 97
Earnings quality: real cash, not paper profit
Fin. Strength 76
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 81
Calm price path (market factor)
Momentum 48
Price trend over the last 3–12 months (market factor)
52W Momentum 73
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

BlackRock Smaller Companies Trust plc is a closed ended equity mutual fund launched by BlackRock Fund Managers Limited. The fund is managed by BlackRock Investment Managers (UK) Limited. It invests in public equity markets of the United Kingdom.

Full company description

BlackRock Smaller Companies Trust plc is a closed ended equity mutual fund launched by BlackRock Fund Managers Limited. The fund is managed by BlackRock Investment Managers (UK) Limited. It invests in public equity markets of the United Kingdom. The fund seeks to invest in the stocks of companies operating across diversified sectors including support services, software and computer services, media and entertainment, construction and building materials, leisure and hotels, general retailers, mining, oil and gas, specialty and other finance, and information technology hardware. It was formerly known as the Merrill Lynch British Smaller Companies Trust plc. BlackRock Smaller Companies Trust plc was formed i 1906 and is domiciled in the United Kingdom.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

BlackRock Smaller Companies Trust plc reported revenue of £67.2M in FY2026 versus £63.0M in FY2022, a compound +1.6%/yr. Reported net income was £60.2M in FY2026, compounding −0.8%/yr from FY2022.

Growth Quality 39/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
£67.2M
Avg. growth/yr (5Y)
−11.0%
Avg. growth/yr (22Y)
+0.9%
Revenue +1.6%/yr
FY22 £63.0M
FY23 −£140M
FY24 −£25.4M
FY25 −£848K
FY26 £67.2M
Net income −0.8%/yr
FY22 £62.1M
FY23 −£141M
FY24 −£32.7M
FY25 −£4.3M
FY26 £60.2M

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Cite: Fair Value Calculator (2026). "BlackRock Smaller Companies Trust plc Fair Value". https://www.fairvalue-calculator.com/stock/BRSC

Peer Group

Asset Management · 973 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.

Quality Score 76 · Top 25%
Fair Value upside +28% · Above median
Return on equity (TTM) 10% · Above median
Return on assets 6% · Above median
Net margin (TTM) 90% · Top 25%
Operating margin (TTM) 95% · Top 25%
Revenue growth -61% · Bottom 25%
Dividend yield (TTM) 3.3% · Below median
Debt / equity 0.15× · Higher than median

Valuation Multiples vs Asset Management median · lower = cheaper

P/E (TTM) 9.3× · Cheaper than median
P/B 1.47× · Pricier than 75% of peers
P/S (TTM) 13.26× · Pricier than 75% of peers
P/FCF 7.4× · Cheaper than median
EV/EBITDA 15.2× · Pricier than median

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.

VALUE 71 · sector 37
FUTURE 0 · sector 6
PAST 40 · sector 26
HEALTH 93 · sector 95
DIVIDEND 66 · sector 69

Values & ESG

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

None of the checked exposures detected

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

Similar stocks

10 more Asset Management stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
Fondul Proprietatea SA FP $0.0420 $0.0800 +90%
BlackRock, Inc BLK $1,136 $465.75 -59%
Blackstone Inc BX $124.56 $16.35 -87%
Investor AB INVEB kr 423.70 kr 847.40 +100%
Brookfield Corporation BN C$62.45 C$10.12 -84%
KKR & Co KKR $100.94 $44.88 -56%
AB Industrivärden INDUA kr 532.50 kr 1,065 +100%
Jio Financial Services Limited JIOFIN ₹242.98 ₹40.19 -83%
Hedef Holding HEDEF 267.25 TRY 320.98 TRY +20%
Bajaj Holdings BAJAJHLDNG ₹10,398 ₹9,202 -12%

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Frequently asked questions

Is BlackRock Smaller Companies Trust plc (BRSC) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of £3.45 versus a price of £2.69, about +28% (undervalued).
What is the fair value of BRSC?
Our model-based fair value for BlackRock Smaller Companies Trust plc is £3.45 (as of Jul 18, 2026), built from audited fundamentals. The current price is £2.69.
What is the quality score of BRSC?
BlackRock Smaller Companies Trust plc has a Quality Score of 77/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the net profit margin of BRSC?
The net profit margin of BlackRock Smaller Companies Trust plc is about 0.0%, meaning it keeps roughly 0.0% of revenue as net income. Based on the latest reported figures.
Does BlackRock Smaller Companies Trust plc pay a dividend?
BlackRock Smaller Companies Trust plc currently shows a dividend yield of about 3.41% relative to its recent price (as of Jul 18, 2026).

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.

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