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ConvaTec Group PLC (CTEC) Fair Value & Analysis

Healthcare · GB · Market cap 4.2B GBX

CG ConvaTec Group PLC CTEC · LSE
Price£2.26
Fair Value£1.37
Upside-39.3%
Quality67/100
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Strengths

Healthy Growth
Moderate debt · generates free cash flow
Ranks above peers (9/15)

Risks

!Trades 39% ABOVE our fair value of £1.37
!Thin margins · 7.2% net margin
!Moderate moat 53/100
Healthy Growth
Thin margins · 7.2% net margin
Moderate debt · generates free cash flow
3.37% dividend yield
Ranks above peers (9/15)
Moderate moat 53/100
Evidence: High Range £0.8000 – £1.85 Share as image

Fair value as of: Aug 20, 2026

From 25 valuation models · updated yesterday

Fair value updated Aug 20, 2026, revised from £1.87 to £1.37 (−26.7%) since Aug 13, 2026. Share price +4.8% over the past month.

A solid business, but screening 39% overvalued on our models.

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What matters now

  • The price sits above even our optimistic bull case (£1.85). The favourable scenario is already priced in.
  • Solid but not exceptional quality (67/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (£0.8000 to £1.85) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

£2.89 £1.51 Fair Value £1.37 Jun 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 20, 2026.

How to read this chart

60‑month range £1.51 – £2.89 · fair‑value band £0.8000 – £1.85 · the £2.26 price screens above the £1.37 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 20, 2026.

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Analysis

ConvaTec Group PLC (CTEC) currently trades at £2.26, while our model-based Fair Value estimate is £1.37, implying the stock looks roughly 39.3% overvalued today. The Quality Score stands at 67/100 (solid quality), in the Healthcare sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, ConvaTec Group PLC generated revenue of £2.4B at a net margin of 7.2%. Revenue grew 7.1% year over year. It earns a return on equity of 10.9%. Net debt stands at £1.5B. Fundamentals as of Aug 20, 2026

Our scenario range runs from £0.8000 (bear case) to £1.85 (bull case); at £2.26, the current price sits above 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 Healthcare peers we cover trades at -46% fair-value upside, at -39%, CTEC 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 Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF £1.16 £1.86 £2.78 80
Residual Income £0.7100 £0.8100 £1.21 76
Rev-Margin DCF £1.13 £2.10 £3.16 74
All 25 models by family
DCF Models
FCF DCF £1.11 £1.88 £2.94 38
Owner Earnings £0.7300 £1.34 £2.17 31
5Y Revenue Exit £1.13 £2.09 £3.27 39
5Y EBITDA Exit £1.89 £3.45 £5.20 41
5Y P/E Exit £0.8200 £1.53 £2.24 38
10Y Revenue Exit £1.05 £1.90 £2.95 36
10Y EBITDA Exit £1.57 £2.80 £4.33 37
10Y P/E Exit £0.9200 £1.53 £2.21 35
Earnings-Based
Graham-Dodd £0.6200 £1.52 £1.97 54
PEG = 1.0 £0.2700 £0.3900 £0.5100 46
EPV £0.9900 £1.26 £1.49 59
Dividend Discount
Gordon GGM £0.6400 £1.13 £1.73 70
DDM Multi-Stage £0.6400 £0.9500 £1.27 61
Multiples
P/E Multiple £1.51 £2.01 £2.51 63
P/S Multiple £1.17 £1.55 £1.94 58
P/B Multiple £1.17 £1.55 £1.94 55
EV/EBIT £2.03 £2.94 £3.84 53
EV/EBITDA £2.78 £3.94 £5.09 54
EV/Revenue £1.26 £2.09 £2.92 43
Asset-Based
NCAV (Graham) £0.3900 £0.5200 £0.7800 50
Growth DCF
Growth DCF £1.16 £1.86 £2.78 80
Rev-Margin DCF £1.13 £2.10 £3.16 74
Economic Profit
Residual Income £0.7100 £0.8100 £1.21 76
ROIC Compounder £1.03 £1.40 £1.82 72
Growth Earnings
Growth-Adj P/E £1.15 £1.64 £2.14 68

Widest divergence: Multiples (£2.01) versus Asset-Based (£0.5200). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 2.4B GBX
Revenue growth (YoY) +7.1%
Net margin 7.2%
Return on equity 10.9%
Free cash flow 342M GBX FY2025
P/E ratio 37.6
More key figures
Operating margin 18.1%
EPS (TTM) £0.0600
Dividend yield 3.7%
EPS growth (YoY) -36.5%
Net debt 1.5B GBX FY2025

Figures from reported company fundamentals · as of Aug 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 67/100

Of which business quality 64 · Market factors (momentum, volatility) 51

Profitability 47
Margins and returns on capital today
Quality Growth 51
Are margins and returns improving?
Cashflow 73
Earnings quality: real cash, not paper profit
Fin. Strength 48
Balance sheet, leverage, solvency risk
Investment 91
Disciplined investing over empire-building
Low Volatility 75
Calm price path (market factor)
Momentum 42
Price trend over the last 3–12 months (market factor)
52W Momentum 40
Distance to the 52-week high (market factor)
Net Issuance 88
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

Convatec Group PLC engages in the development, manufacturing, and sale of medical products, services and technologies for the management of chronic conditions in Europe, North America, and internationally.

Full company description

Convatec Group PLC engages in the development, manufacturing, and sale of medical products, services and technologies for the management of chronic conditions in Europe, North America, and internationally. The company offers advanced wound care products for the management of acute and chronic wounds resulting from various conditions, such as diabetes, and acute conditions resulting from traumatic injury and burns. It also provides ostomy care solutions, including devices, accessories, and services for people with a stoma resulting from colorectal cancer, bladder cancer, inflammatory bowel disease, and trauma. In addition, the company offers continence care products and services for people with urinary continence issues related to spinal cord injuries, neurological disease, prostate enlargement or other causes. Further, it provides infusion care solutions comprising disposable infusion sets for diabetes insulin pumps, or for use in continuous infusion treatments for conditions such as Parkinson's disease. The company sells its products to pharmacies, hospitals, and other acute and post-acute healthcare service providers directly or through distributors and wholesalers. It serves a range of customers, including healthcare providers, patients, and manufacturers. Convatec Group PLC was founded in 1978 and is headquartered in London, the United Kingdom.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

ConvaTec Group PLC reported revenue of £2.5B in FY2025 versus £2.0B in FY2021, a compound +5.1%/yr. Reported net income was £179M in FY2025, compounding +11.0%/yr from FY2021.

Growth Quality 70/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
£2.5B
Latest YoY
+8.8%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.3%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.6%
Avg. growth/yr (12Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.2%
Revenue +5.1%/yr
FY21 £2.0B
FY22 £2.1B
FY23 £2.1B
FY24 £2.3B
FY25 £2.5B
Net income +11.0%/yr
FY21 £118M
FY22 £62.9M
FY23 £130M
FY24 £191M
FY25 £179M

CTEC screens 39% overvalued. Compare with Intuitive Surgical, Inc →

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Cite: Fair Value Calculator (2026). "ConvaTec Group PLC Fair Value". https://www.fairvalue-calculator.com/stock/CTEC

Peer Group

Medical Instruments & Supplies · 203 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 67 · Top 25%
Fair Value upside −39% · Below median
Return on equity (TTM) 11% · Above median
Return on assets 7% · Top 25%
Net margin (TTM) 7% · Above median
Operating margin (TTM) 18% · Above median
Revenue growth 7% · Above median
Dividend yield (TTM) 3.2% · Above median
Debt / equity 0.92× · Higher than 75% of peers

Valuation Multiples vs Medical Instruments & Supplies median · lower = cheaper

P/E (TTM) 37.6× · Pricier than median
P/B 3.80× · Pricier than 75% of peers
P/S (TTM) 2.37× · Pricier than median
P/FCF 16.9× · Pricier than median
EV/EBITDA 12.1× · Cheaper than median
PEG 0.61× · Cheaper than 75% of peers

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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE36 · sector 26
PAST44 · sector 26
HEALTH54 · sector 96
DIVIDEND64 · sector 32

VALUE 0: the price sits above our fair-value range.

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

Similar stocks

10 more Medical Instruments & Supplies stocks, each showing price versus our Fair Value estimate (as of Aug 20, 2026).

Stock Price Fair Value vs Fair Value
Intuitive Surgical, Inc ISRG $401.27 $150.04 -63%
EssilorLuxottica Société anonyme 1EL €164.40 €68.55 -58%
Medline Inc MDLN $35.50 $30.15 -15%
Becton, Dickinson and Company BDX $182.09 $100.46 -45%
Alcon Inc ALC $73.58 $39.78 -46%
ResMed Inc RMD $226.00 $187.89 -17%
West Pharmaceutical Services, Inc WST $352.29 $141.58 -60%
Sartorius Stedim Biotech S.A DIM €180.30 €48.88 -73%
Coloplast A/S COLOB kr 435.80 kr 382.22 -12%
Gan & Lee Pharmaceuticals., a biopharmaceutical company, 603087 ¥77.48 ¥27.22 -65%

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Frequently asked questions

Is ConvaTec Group PLC (CTEC) overvalued or undervalued?
As of Aug 20, 2026, our model estimates a fair value of £1.37 versus a price of £2.26, about −39% (overvalued).
What is the fair value of CTEC?
Our model-based fair value for ConvaTec Group PLC is £1.37 (as of Aug 20, 2026), built from audited fundamentals. The current price: £2.26.
What is the quality score of CTEC?
ConvaTec Group PLC has a Quality Score of 67/100. 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 revenue of ConvaTec Group PLC (CTEC)?
ConvaTec Group PLC reported trailing-twelve-month revenue of about £2.4B (latest available figure, as of Aug 20, 2026).
What is the net profit margin of CTEC?
The net profit margin of ConvaTec Group PLC is about 7.2%, meaning it keeps roughly 7.2% of revenue as net income. Based on the latest reported figures.
Does ConvaTec Group PLC pay a dividend?
ConvaTec Group PLC currently shows a dividend yield of about 3.71% relative to its recent price (as of Aug 20, 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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