Gear4music (Holdings) Plc (G4M) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Gear4music (Holdings) Plc stock £6.25, price £2.25, upside +177.8%, quality 71 out of 100. Rating: strongly undervalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 4, 2026.
How to read this chart
60‑month range £0.8250 – £10.00 · fair‑value band £3.35 – £8.82 · the £2.25 price screens below the £6.25 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. As of Nov 4, 2026.
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Gear4music (Holdings) plc engages in the retail of musical instruments, musician equipment, and audio-visual equipment in the United Kingdom, rest of Europe, and internationally.
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The company offers pianos, violins, cellos, violas, double bass, bass guitar amps and pedals, guitars, mixers, amps, speakers and audio electronics, drum kits, clarinets, flutes, oboes and piccolos, trumpets, trombones, tubas and french horns, lightweight instruments, guitars and accessories, bass amplification, and drum kits and accessories.
It provides its products under Gear4music, Archer, Redsub, SubZero, Minster, WHD, Rosedale, Coppergate, Playlite, Hartwood, Eden, Premier, Premier NXT GEN, G4M, VISION, AVCOM, modul studio solutions, VOXLINK, Studiospares, Lambden Audio, Imperative Audio, and Trojan Pro brand names.
It serves through Gear4music websites and showrooms. Gear4music (Holdings) plc was founded in 1995 and is headquartered in York, the United Kingdom.
Stock analysis
Gear4music (Holdings) Plc (G4M) currently trades at £2.25, while our model-based Fair Value estimate is £6.25, implying the stock looks roughly 64% undervalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of £6.89 per share, and 23 of the 24 models we run sit above the £2.25 price.
Bear case: the Economic Profit group reads lowest at £2.52, and 1 of the 24 models stay below the price. Data coverage for this calculation is medium.
Scenario range: £3.35 (bear) to £8.82 (bull), the price of £2.25 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 71/100 (solid quality), in the Consumer Cyclical sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Gear4music (Holdings) Plc reported revenue of £191M in FY2026 versus £148M in FY2022, a compound +6.6%/yr. Reported net income was £7.3M in FY2026, compounding +18.4%/yr from FY2022.
Key figures
Market cap £47.2M Micro · P/E ratio 6.5 · P/S ratio 0.25 · EPS (TTM) £0.3488 · Net margin 3.8% · Return on equity 17.1% · Return on assets (EBIT) 5.4% (5-year average) · Operating margin 7.4%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 44 out of 100 (low confidence).
What moves the price
The share trades about 30% below its 52-week high and 1% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at 21% fair-value upside, at 178%, G4M screens cheaper than that median.
Fair Value models
Bear£3.35Fair Value £6.25Bull£8.82
Price £2.25 · Upside +177.8%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 8 months old). Earnings retained since then (£0.2436 per share) are deliberately not added.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.66/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+30.0%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+7.9%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+3.9%
Start year 2021 (pandemic). Over 10 years: +18.3% a year
Revenue growth 13 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+23.5%
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What shareholders gained per year (last 5 years) (mathematically smoothed) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip.
−26.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year−26.4%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.15.1% vs 11.8%, picking up
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.10% → 6%
2026 sits 934% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes about as much growth as the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+6.3%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (UK: IMF forecast 2.3% a year to 2030, 3.3% from 2016 to 2025) that is about +3.9% a year for the price.
Compare Gear4music (Holdings) Plc with another stock
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Internet Retail · 101 stocks
Beats the industry median on 13/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score71 · Top 25%
Fair Value upside+177.8% · Top 25%
Profitability
Return on equity (12 months)17.1% · Above median
Return on assets7.9% · Top 25%
Net margin (12 months)3.8% · Above median
Operating margin (12 months)7.4% · Above median
Growth and dividend
Revenue growth (quarter YoY)29.4% · Top 25%
Balance sheet
Debt / equity0.28× · Above median
Valuation Multiplesvs Internet Retail median · lower = cheaper
P/E (12 months)6.5× · Cheapest 25%
P/B1.02× · Cheapest 25%
P/S (12 months)0.25× · Cheapest 25%
Price / free cash flow (fiscal year)10.1× · Cheaper than median
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Is Gear4music (Holdings) Plc (G4M) overvalued or undervalued?
As of Nov 4, 2026, our model estimates a fair value of £6.25 versus a price of £2.25, about +178% upside (undervalued).
What is the fair value of G4M?
Our model-based fair value for Gear4music (Holdings) Plc is £6.25 (as of Nov 4, 2026), built from audited fundamentals. The current price: £2.25.
What is the quality score of G4M?
Gear4music (Holdings) Plc has a Quality Score of 71/100. 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 price target for Gear4music (Holdings) Plc (G4M)?
Our model-based price target is the fair value of £6.25 (as of Nov 4, 2026) from 24 valuation models. Cautious scenario £3.35, optimistic scenario £8.82. It is a calculation from audited fundamentals, not an analyst target.
What is the Gear4music (Holdings) Plc stock forecast for 2026?
Our models put fair value at £6.25, about +178% upside versus a price of £2.25 (undervalued). Cautious scenario £3.35, optimistic scenario £8.82. The calculation is refreshed regularly with new filings.
What is the revenue of Gear4music (Holdings) Plc (G4M)?
Gear4music (Holdings) Plc reported trailing-twelve-month revenue of about £191M (latest available figure, as of Nov 4, 2026).
What growth is priced into Gear4music (Holdings) Plc (G4M)?
For today's price to be fair in a discounted-cash-flow model, Gear4music (Holdings) Plc would have to grow free cash flow by +6.3 % per year for five years (discount rate 13.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +3.9 % per year. As of Nov 4, 2026.
What discount rate (WACC) does the fair value of G4M use?
Our models discount Gear4music (Holdings) Plc at 13.4 %: a base by market capitalisation (micro), damped by beta 1.03, country premium for United Kingdom. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Gear4music (Holdings) Plc that is +6.3 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (13.4 %) and the same formula as our fair value.
How much growth has Gear4music (Holdings) Plc (G4M) delivered so far?
Over the past 5 years revenue at Gear4music (Holdings) Plc grew +3.9 % a year. The price currently implies free-cash-flow growth of +6.3 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Gear4music (Holdings) Plc (G4M) growing?
The median revenue growth in the sector is +4.7 % a year. That is the yardstick for the growth priced into Gear4music (Holdings) Plc (+6.3 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Gear4music (Holdings) Plc (G4M)?
The free-cash-flow yield on the price is 9.91 %: that much free cash flow Gear4music (Holdings) Plc produces per unit of market value. When it exceeds the discount rate of our models (13.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Gear4music (Holdings) Plc (G4M)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Gear4music (Holdings) Plc it is £6.25 per share (as of Nov 4, 2026), against a price of £2.25. It is the blended result of 24 valuation models in 7 families (DCF Models, Earnings-Based, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Gear4music (Holdings) Plc stock overvalued or undervalued in 2026?
As of Nov 4, 2026, G4M trades below its calculated fair value: price £2.25, fair value £6.25, a gap of about +178% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of G4M?
No. The price is what the market pays today (£2.25); the fair value is what the company's own numbers justify (£6.25). For Gear4music (Holdings) Plc the two are £4.00 per share apart. That gap is exactly why we show both numbers side by side.
How much is Gear4music (Holdings) Plc worth?
The market values Gear4music (Holdings) Plc at about £47.2M (market capitalisation, as of Nov 4, 2026). Per share that is £2.25; our models calculate a fair value of £6.25 per share.
What do the bullish and bearish scenarios say about G4M?
Our models span a range for Gear4music (Holdings) Plc: cautious scenario £3.35, base £6.25, optimistic £8.82 per share (as of Nov 4, 2026, price £2.25). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of G4M?
Gear4music (Holdings) Plc trades at a price-to-earnings ratio of 6.5 (as of Nov 4, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of £6.25 is built from several models across several years. Median P/E at fiscal year-end, 8 fiscal years (2017 to 2026), reported earnings, FY2026 ex one-offs: 29.1. Other multiples: PEG 0.8, P/B 1.0, P/S 0.2, EV/EBITDA 4.2.
What is the PEG ratio of G4M?
The PEG ratio of Gear4music (Holdings) Plc is 0.78 (P/E divided by earnings growth, as of Nov 4, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Gear4music (Holdings) Plc (G4M)?
Balance-sheet figures for Gear4music (Holdings) Plc (as of Nov 4, 2026): return on equity 17.1%, debt of 0.28 per unit of equity. They feed the Quality Score of 71/100, which measures business quality independently of the share price.
How far is G4M from its 52-week high?
Gear4music (Holdings) Plc trades at £2.25, about 30% below its 52-week high of £3.23 and 1% above the low of £2.23 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of £6.25 is for.
Which stocks are comparable to Gear4music (Holdings) Plc?
From the same area (Consumer Cyclical) we also value Amazon.com, Inc, Alibaba Group, PDD Holdings, Prosus N.V, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Gear4music (Holdings) Plc stock attractive at the current price?
The data as of Nov 4, 2026: price £2.25, calculated fair value £6.25 (+178%), Quality Score 71/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of G4M calculated?
We run Gear4music (Holdings) Plc through 24 models from 7 families: DCF Models, Earnings-Based, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of £6.25 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. Gear4music (Holdings) Plc currently trades 64% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Gear4music (Holdings) Plc (G4M)?
The closing price on Nov 6, 2026 was £2.25. Our model-based fair value is £6.25, about +178% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Gear4music (Holdings) Plc right now?
The price is below even our cautious bear case (£3.35). The market is more pessimistic than our downside scenario. The model range is unusually wide (£3.35 to £8.82). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid quality (71/100) at a price below fair value, the discount is the argument here, not the business quality.
Key figures of Gear4music (Holdings) Plc
How large is the market capitalisation of Gear4music (Holdings) Plc (G4M)?
The market capitalisation of Gear4music (Holdings) Plc is £47.2M. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Gear4music (Holdings) Plc (G4M)?
The price-to-sales ratio of Gear4music (Holdings) Plc is 0.25 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Gear4music (Holdings) Plc (G4M)?
Earnings per share at Gear4music (Holdings) Plc are £0.3488 (price ÷ EPS = P/E 6.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Gear4music (Holdings) Plc (G4M)?
The net margin of Gear4music (Holdings) Plc is 3.8% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Gear4music (Holdings) Plc (G4M)?
The return on equity (ROE) of Gear4music (Holdings) Plc is 17.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Gear4music (Holdings) Plc (G4M)?
On an EBIT basis the return on assets of Gear4music (Holdings) Plc is 5.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Gear4music (Holdings) Plc (G4M)?
The operating margin of Gear4music (Holdings) Plc is 7.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Gear4music (Holdings) Plc (G4M)?
Revenue at Gear4music (Holdings) Plc is growing +29.4% versus a year earlier (3y avg +7.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Gear4music (Holdings) Plc (G4M)?
Earnings per share at Gear4music (Holdings) Plc are growing +180% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Gear4music (Holdings) Plc (G4M) carry?
The net debt of Gear4music (Holdings) Plc is £11.4M (fiscal year 2026, ≈ 2.4 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Some data
Nov 4, 2026