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discoverIE Group (DSCV) Fair Value & Analysis

Technology · GB · Market cap 629M GBX

DG discoverIE Group DSCV · LSE
Price£6.62
Fair Value£5.84
Upside-11.8%
Quality61/100
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Healthy Growth
Thin margins · 6.5% net margin
Low debt · generates free cash flow
2.05% dividend yield
Ranks above peers (10/15)
Narrow moat 44/100
Evidence: High Range £3.97 – £7.54 Share as image

Fair value as of: Jul 11, 2026

From 26 valuation models · updated 29 days ago

Fair value updated Jul 11, 2026, revised from £5.07 to £5.84 (+15.2%) since Jun 24, 2026. Share price +31.2% over the past month.

A solid business, but screening 12% overvalued on our models.

What matters now

  • A fairly wide model range (£3.97 to £7.54) leaves room in how you read the outcome.
  • Our model range runs from £3.97 (bear) to £7.54 (bull), base £5.84. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 61/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

£9.22 £3.74 Fair Value £5.84 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 11, 2026.

How to read this chart

60‑month range £3.74 – £9.22 · fair‑value band £3.97 – £7.54 · the £6.62 price screens above the £5.84 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 11, 2026.

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Analysis

discoverIE Group (DSCV) currently trades at £6.62, while our model-based Fair Value estimate is £5.84, implying the stock looks roughly 11.8% overvalued today. The Quality Score stands at 61/100 (solid quality), in the Technology 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, discoverIE Group generated revenue of £428M at a net margin of 6.1%. Revenue grew 2.5% year over year. It earns a return on equity of 8.5%. Net debt stands at £115M. Fundamentals as of Jul 11, 2026

Our scenario range runs from £3.97 (bear case) to £7.54 (bull case); at £6.62, 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 Technology peers we cover trades at -73% fair-value upside, at -12%, DSCV 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 £4.25 £5.72 £7.52 80
Residual Income £2.75 £2.92 £3.19 76
Rev-Margin DCF £4.00 £6.05 £8.35 74
All 26 models by family
DCF Models
FCF DCF £4.21 £5.88 £8.05 38
Owner Earnings £5.17 £7.24 £9.93 31
5Y Revenue Exit £4.00 £6.01 £8.53 39
5Y EBITDA Exit £5.54 £8.85 £12.65 41
5Y P/E Exit £4.17 £6.32 £8.53 38
10Y Revenue Exit £3.94 £5.68 £7.91 36
10Y EBITDA Exit £4.93 £7.46 £10.73 37
10Y P/E Exit £4.14 £5.88 £7.91 35
Earnings-Based
Graham-Dodd £2.05 £5.86 £7.72 54
Lynch FV £1.20 £1.71 £2.23 50
PEG = 1.0 £1.20 £1.71 £2.23 46
EPV £3.01 £3.40 £3.73 59
Dividend Discount
Gordon GGM £0.9900 £1.78 £2.45 70
DDM Multi-Stage £0.9900 £1.48 £1.90 61
Multiples
P/E Multiple £4.53 £6.03 £7.54 63
P/S Multiple £3.85 £5.13 £6.41 58
P/B Multiple £3.85 £5.13 £6.41 55
EV/EBIT £5.97 £7.91 £9.85 53
EV/EBITDA £7.31 £9.69 £12.07 54
EV/Revenue £4.08 £5.76 £7.44 43
Asset-Based
NCAV (Graham) £1.71 £2.29 £3.42 50
Growth DCF
Growth DCF £4.25 £5.72 £7.52 80
Rev-Margin DCF £4.00 £6.05 £8.35 74
Economic Profit
Residual Income £2.75 £2.92 £3.19 76
ROIC Compounder £3.01 £3.40 £3.94 72
Growth Earnings
Growth-Adj P/E £3.65 £5.22 £6.78 68

Widest divergence: DCF Models (£6.01) versus Dividend Discount (£1.48). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 443M GBX
Revenue growth (YoY) +7.1%
Net margin 6.1%
Return on equity 9.1%
Free cash flow 42.3M GBX FY2026
P/E ratio 29.1
More key figures
Operating margin 9.9%
EPS (TTM) £0.2600
Dividend yield 1.7%
EPS growth (YoY) +24.2%
Net debt 115M GBX FY2026

Figures from reported company fundamentals · as of Jul 11, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 61/100

Of which business quality 60 · Market factors (momentum, volatility) 65

Profitability 41
Margins and returns on capital today
Quality Growth 48
Are margins and returns improving?
Cashflow 65
Earnings quality: real cash, not paper profit
Fin. Strength 56
Balance sheet, leverage, solvency risk
Investment 86
Disciplined investing over empire-building
Low Volatility 51
Calm price path (market factor)
Momentum 64
Price trend over the last 3–12 months (market factor)
52W Momentum 82
Distance to the 52-week high (market factor)
Net Issuance 81
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

discoverIE Group plc designs, manufactures, and supplies specialist electronic components for industrial applications in the United Kingdom, Europe, North America, Asia, and internationally. It operates in two segments: Magnetics & Controls; and Sensing & Connectivity.

Full company description

discoverIE Group plc designs, manufactures, and supplies specialist electronic components for industrial applications in the United Kingdom, Europe, North America, Asia, and internationally. It operates in two segments: Magnetics & Controls; and Sensing & Connectivity. The company offers magnetic and power components, embedded computing and interface controls, and sensing and connectivity components for industrial applications. The Magnetics & Controls segment offers Electronics for X-ray detection, signal conditioning, power conversion and switching, monitoring, and remote control, communication and interface control. The Sensing & Connectivity segment offers electronics for wireless transmission, fibre optic and cable connection, electromagnetic shielding, and sensing components for measuring movement, temperature, pressure, position, force, and load. It serves customers in the renewable energy, transportation, security, medical, industrial and connectivity, and other markets. The company was formerly known as Acal plc and changed its name to discoverIE Group plc in November 2017. discoverIE Group plc was incorporated in 1986 and is headquartered in Guildford, the United Kingdom.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

discoverIE Group reported revenue of £443M in FY2026 versus £379M in FY2022, a compound +4.0%/yr. Reported net income was £29.0M in FY2026, compounding +11.2%/yr from FY2022.

Growth Quality 76/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
£443M
Latest YoY
+4.8%
Avg. growth/yr (3Y)
−0.4%
Avg. growth/yr (5Y)
+7.9%
Avg. growth/yr (40Y)
+6.9%
Revenue +4.0%/yr
FY22 £379M
FY23 £449M
FY24 £437M
FY25 £423M
FY26 £443M
Net income +11.2%/yr
FY22 £19.0M
FY23 £21.3M
FY24 £15.5M
FY25 £24.6M
FY26 £29.0M

DSCV screens 12% overvalued. Compare with Delta Electronics, Inc →

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

Peer Group

Electronic Components · 626 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 61 · Above median
Fair Value upside −12% · Above median
Return on equity (TTM) 9% · Above median
Return on assets 4% · Above median
Net margin (TTM) 7% · Above median
Operating margin (TTM) 10% · Above median
Revenue growth 7% · Above median
Dividend yield (TTM) 2.1% · Above median
Debt / equity 0.34× · Higher than 75% of peers

Valuation Multiples vs Electronic Components median · lower = cheaper

P/E (TTM) 22.6× · Cheaper than median
P/B 2.58× · Pricier than median
P/S (TTM) 1.91× · Pricier than median
P/FCF 20.1× · Pricier than 75% of peers
EV/EBITDA 12.6× · Cheaper than median
PEG 1.46× · 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 18 · sector 0
FUTURE 36 · sector 32
PAST 36 · sector 24
HEALTH 83 · sector 95
DIVIDEND 41 · sector 25

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 Electronic Components stocks, each showing price versus our Fair Value estimate (as of Jul 11, 2026).

Stock Price Fair Value vs Fair Value
Delta Electronics, Inc 2308 1,880 TWD 515.23 TWD -73%
Hon Hai Precision Industry Co 2317 242.50 TWD 270.47 TWD +12%
Luxshare Precision Industry Co 002475 ¥62.14 ¥38.44 -38%
Samsung Electro-Mechanics Co 009150 1,260,000 KRW 166,421 KRW -87%
Elite Material Co 2383 4,990 TWD 714.36 TWD -86%
Yageo Corporation 2327 699.00 TWD 216.55 TWD -69%
Shengyi Technology Co 600183 ¥132.29 ¥27.45 -79%
Shennan Circuits Co 002916 ¥364.00 ¥93.50 -74%
Victory Giant Technology (HuiZhou) Co 2476 HK$297.00 HK$103.98 -65%
Wus Printed Circuit (Kunshan) Co 002463 ¥127.80 ¥31.95 -75%

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Frequently asked questions

Is discoverIE Group (DSCV) overvalued or undervalued?
As of Jul 11, 2026, our model estimates a fair value of £5.84 versus a price of £6.62, about −12% (overvalued).
What is the fair value of DSCV?
Our model-based fair value for discoverIE Group is £5.84 (as of Jul 11, 2026), built from audited fundamentals. The current price is £6.62.
What is the quality score of DSCV?
discoverIE Group has a Quality Score of 61/100. 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 discoverIE Group (DSCV)?
discoverIE Group reported trailing-twelve-month revenue of about £428M (latest available figure, as of Jul 11, 2026).
What is the net profit margin of DSCV?
The net profit margin of discoverIE Group is about 6.1%, meaning it keeps roughly 6.1% of revenue as net income. Based on the latest reported figures.
Does discoverIE Group pay a dividend?
discoverIE Group currently shows a dividend yield of about 1.66% relative to its recent price (as of Jul 11, 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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