EN DE

dotdigital Group (DOTD) Fair Value & Analysis

Technology · GB · Market cap 138M GBX

DG dotdigital Group DOTD · LSE
Price£0.5160
Fair Value£1.04
Upside+101.6%
Quality66/100
Watch dotdigital Group for free, get notified when fair value or trend changes. Watch for free
Mixed Growth
Solidly profitable · 10.8% net margin
Low debt · generates free cash flow
2.63% dividend yield
Ranks above peers (12/14)
Moderate moat 52/100
Evidence: High Range £0.7600 – £1.29 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated yesterday

Fair value updated Aug 13, 2026, revised from £0.7400 to £1.04 (+40.5%) since Jul 12, 2026. Share price +11.9% over the past month.

A solid business, screening 102% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (£0.7600). The market is more pessimistic than our downside scenario.
  • Solid quality (66/100) at a price below fair value, the discount is the argument here, not the business quality.
Share this valuation: 𝕏 WhatsApp

Price vs Fair Value (5 years)

£2.75 £0.4180 Fair Value £1.04 May 2021 Aug 2026

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 £0.4180 – £2.75 · fair‑value band £0.7600 – £1.29 · the £0.5160 price screens below the £1.04 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

dotdigital Group (DOTD) currently trades at £0.5160, while our model-based Fair Value estimate is £1.04, implying the stock looks roughly 101.6% undervalued today. The Quality Score stands at 66/100 (solid quality), in the Technology 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.

Over the trailing twelve months, dotdigital Group generated revenue of £85.7M at a net margin of 10.8%. Revenue grew 4.3% year over year. It earns a return on equity of 8.9%. The balance sheet holds a net cash position of £34.4M. Fundamentals as of Aug 13, 2026

Our scenario range runs from £0.7600 (bear case) to £1.29 (bull case); at £0.5160, 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 Technology peers we cover trades at -40% fair-value upside, at 102%, DOTD 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 £0.8800 £1.40 £2.08 80
Residual Income £0.2700 £0.3000 £0.3400 76
Rev-Margin DCF £0.6900 £1.07 £1.59 74
All 26 models by family
DCF Models
FCF DCF £0.9100 £1.42 £2.45 38
Owner Earnings £0.8600 £1.42 £2.30 31
5Y Revenue Exit £0.6900 £1.07 £1.60 39
5Y EBITDA Exit £1.08 £1.93 £3.04 41
5Y P/E Exit £0.8600 £1.46 £2.17 38
10Y Revenue Exit £0.7500 £1.13 £1.72 36
10Y EBITDA Exit £0.9900 £1.68 £2.82 37
10Y P/E Exit £0.8700 £1.38 £2.16 35
Earnings-Based
Graham-Dodd £0.2500 £1.44 £2.00 54
Lynch FV £0.4100 £0.5800 £0.7500 50
PEG = 1.0 £0.4100 £0.5800 £0.7500 46
EPV £0.3700 £0.4000 £0.4200 59
Dividend Discount
Gordon GGM £0.0800 £0.1300 £0.1700 70
DDM Multi-Stage £0.0800 £0.1200 £0.1400 61
Multiples
P/E Multiple £0.7800 £1.04 £1.29 63
P/S Multiple £0.4700 £0.6300 £0.7900 58
P/B Multiple £0.4700 £0.6300 £0.7900 55
EV/EBIT £0.9800 £1.27 £1.55 53
EV/EBITDA £1.27 £1.65 £2.03 54
EV/Revenue £0.5500 £0.7400 £0.9300 43
Asset-Based
NCAV (Graham) £0.1700 £0.2300 £0.3400 50
Growth DCF
Growth DCF £0.8800 £1.40 £2.08 80
Rev-Margin DCF £0.6900 £1.07 £1.59 74
Economic Profit
Residual Income £0.2700 £0.3000 £0.3400 76
ROIC Compounder £0.3800 £0.4500 £0.5300 72
Growth Earnings
Growth-Adj P/E £0.7000 £1.00 £1.29 68

Widest divergence: DCF Models (£1.42) versus Dividend Discount (£0.1200). Highest evidence: Growth DCF (80).

Notify me when DOTD reaches fair value

Free. You confirm by email (double opt-in) and can unsubscribe anytime in one click.

Key figures & financial health

Revenue (TTM) 85.7M GBX
Revenue growth (YoY) +4.3%
Net margin 10.8%
Return on equity 8.9%
Free cash flow 23.7M GBX FY2025
P/E ratio 17.2
More key figures
Operating margin 14.8%
EPS (TTM) £0.0300
Dividend yield 2.4%
EPS growth (YoY) -30.5%
Net cash 34.4M GBX FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 66/100

Of which business quality 71 · Market factors (momentum, volatility) 28

Profitability 54
Margins and returns on capital today
Quality Growth 35
Are margins and returns improving?
Cashflow 99
Earnings quality: real cash, not paper profit
Fin. Strength 97
Balance sheet, leverage, solvency risk
Investment 48
Disciplined investing over empire-building
Low Volatility 41
Calm price path (market factor)
Momentum 24
Price trend over the last 3–12 months (market factor)
52W Momentum 19
Distance to the 52-week high (market factor)
Net Issuance 70
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

dotdigital Group Plc engages in the provision of intuitive software as a service (SaaS) and managed services to digital marketing professionals worldwide.

Full company description

dotdigital Group Plc engages in the provision of intuitive software as a service (SaaS) and managed services to digital marketing professionals worldwide. The company offers Dotdigital, a SaaS-based an all-in-one customer experience and data platform that breaks down data siloes to create a centralized data hub to deliver actionable insights and automate the data through various channels, such as web, email, SMS, WhatsApp, chat, push, social, ads, and others. The company was founded in 1999 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

dotdigital Group reported revenue of £83.9M in FY2025 versus £58.1M in FY2021, a compound +9.6%/yr. Reported net income was £11.2M in FY2025, compounding +1.4%/yr from FY2021.

Growth Quality 83/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
£83.9M
Latest YoY
+6.3%
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.
+10.1%
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.
+12.1%
Avg. growth/yr (17Y) 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.
+23.0%
Revenue +9.6%/yr
FY21 £58.1M
FY22 £62.8M
FY23 £69.2M
FY24 £79.0M
FY25 £83.9M
Net income +1.4%/yr
FY21 £10.6M
FY22 £11.8M
FY23 £12.6M
FY24 £11.1M
FY25 £11.2M
Character of growth · EPS growth decomposed (2014-2025) +10.3 % p.a.
Revenue per share +14.4 pp

of which total revenue +15.3 pp · buybacks/dilution −0.9 pp

EBIT margin −3.1 pp
Tax rate −1.0 pp
Residual (interest, one-offs) +0.0 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

Watch DOTD: get an alert when its fair value changes →

Share or link this analysis
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

Cite: Fair Value Calculator (2026). "dotdigital Group Fair Value". https://www.fairvalue-calculator.com/stock/DOTD

Peer Group

Software - Application · 714 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 66 · Top 25%
Fair Value upside +105% · Top 25%
Return on equity (TTM) 9% · Above median
Return on assets 6% · Top 25%
Net margin (TTM) 11% · Above median
Operating margin (TTM) 15% · Above median
Revenue growth 4% · Below median
Dividend yield (TTM) 2.6% · Above median

Valuation Multiples vs Software - Application median · lower = cheaper

P/E (TTM) 17.2× · Cheaper than median
P/B 1.81× · Cheaper than median
P/S (TTM) 2.17× · Pricier than median
P/FCF 7.9× · Cheaper than median
EV/EBITDA 9.7× · Cheaper 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 100 · sector 1
FUTURE 22 · sector 38
PAST 35 · sector 13
HEALTH 100 · sector 98
DIVIDEND 53 · sector 27

Insider activity: 40/100

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 Software - Application stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
SAP SE SAPS C$12.46 C$16.26 +30%
Shopify Inc SHOP C$209.78 C$28.76 -86%
Uber Technologies, Inc UBER $75.36 $43.66 -42%
Salesforce, Inc CRM $193.32 $249.28 +29%
ServiceNow, Inc NOW $124.94 $43.73 -65%
Cadence Design Systems, Inc CDNS $323.13 $112.57 -65%
Beijing Kingsoft Office Software, Inc 688111 ¥254.50 ¥81.23 -68%
Tata Elxsi Limited TATAELXSI ₹3,712 ₹2,519 -32%
Douzone Bizon Co 012510 120,000 KRW 92,181 KRW -23%
KFin Technologies Limited KFINTECH ₹922.00 ₹556.85 -40%

Compare dotdigital Group with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Technology stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Frequently asked questions

Is dotdigital Group (DOTD) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of £1.04 versus a price of £0.5160, about +102% (undervalued).
What is the fair value of DOTD?
Our model-based fair value for dotdigital Group is £1.04 (as of Aug 13, 2026), built from audited fundamentals. The current price is £0.5160.
What is the quality score of DOTD?
dotdigital Group has a Quality Score of 66/100. 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 dotdigital Group (DOTD)?
dotdigital Group reported trailing-twelve-month revenue of about £85.7M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of DOTD?
The net profit margin of dotdigital Group is about 10.8%, meaning it keeps roughly 10.8% of revenue as net income. Based on the latest reported figures.
Does dotdigital Group pay a dividend?
dotdigital Group currently shows a dividend yield of about 2.35% relative to its recent price (as of Aug 13, 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.

14 days Pro free · no card

Track dotdigital Group and try Pro for 14 days

One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.

Zero risk: nothing is ever charged. After 14 days you decide whether to stay.