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Gear4music (Holdings) plc (G4M) Fair Value & Analysis

Consumer Cyclical · GB · Market cap 58.2M GBX

GH Gear4music (Holdings) plc G4M · LSE
Price£2.78
Fair Value£6.28
Upside+126.3%
Quality71/100
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Healthy Growth
Thin margins · 3.8% net margin
Low debt · generates free cash flow
Ranks above peers (11/14)
Narrow moat 44/100
Evidence: High Range £3.28 – £9.59 Share as image

Fair value as of: Jul 16, 2026

From 24 valuation models · updated 24 days ago

Fair value updated Jul 16, 2026, revised from £1.33 to £6.28 (+372.2%) since Jun 24, 2026. Share price +6.4% over the past month.

A solid business, screening 126% undervalued on our models.

What matters now

  • The rarer combination: high quality (71/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The price is below even our cautious bear case (£3.28). The market is more pessimistic than our downside scenario.
  • The model range is unusually wide (£3.28 to £9.59). The outcome hinges heavily on assumptions, so read the point estimate with caution.
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Price vs Fair Value (5 years)

£9.58 £0.7827 Fair Value £6.28 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range £0.7827 – £9.58 · fair‑value band £3.28 – £9.59 · the £2.78 price screens below the £6.28 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Gear4music (Holdings) plc (G4M) currently trades at £2.78, while our model-based Fair Value estimate is £6.28, implying the stock looks roughly 126.3% undervalued today. The Quality Score stands at 71/100 (solid quality), in the Consumer Cyclical 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, Gear4music (Holdings) plc generated revenue of £166M at a net margin of 2.5%. Revenue grew 30.8% year over year. It earns a return on equity of 10.4%. Net debt stands at £11.4M. Fundamentals as of Jul 16, 2026

Our scenario range runs from £3.28 (bear case) to £9.59 (bull case); at £2.78, 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 Consumer Cyclical peers we cover trades at -49% fair-value upside, at 126%, G4M 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 £1.80 £2.86 £4.28 80
Rev-Margin DCF £3.29 £6.17 £9.89 74
ROIC Compounder £2.46 £3.05 £3.77 72
All 24 models by family
DCF Models
FCF DCF £1.84 £3.08 £4.85 38
Owner Earnings £4.48 £7.28 £11.31 31
5Y Revenue Exit £3.29 £6.28 £10.40 39
5Y EBITDA Exit £4.67 £9.13 £14.79 41
5Y P/E Exit £3.69 £7.12 £11.06 38
10Y Revenue Exit £2.51 £4.87 £8.56 36
10Y EBITDA Exit £3.41 £6.65 £11.70 37
10Y P/E Exit £2.86 £5.40 £9.04 35
Earnings-Based
Graham-Dodd £2.37 £11.04 £15.17 54
Lynch FV £2.91 £4.16 £5.41 50
PEG = 1.0 £2.91 £4.16 £5.41 46
EPV £2.39 £2.71 £2.96 59
Multiples
P/E Multiple £5.75 £7.67 £9.59 63
P/S Multiple £4.45 £5.93 £7.41 58
P/B Multiple £4.45 £5.93 £7.41 55
EV/EBIT £6.68 £8.99 £11.29 53
EV/EBITDA £7.33 £9.86 £12.38 54
EV/Revenue £4.43 £6.42 £8.42 43
Asset-Based
NCAV (Graham) £1.10 £1.48 £2.21 50
Growth DCF
Growth DCF £1.80 £2.86 £4.28 80
Rev-Margin DCF £3.29 £6.17 £9.89 74
Economic Profit
Residual Income £2.02 £2.43 £4.73 61
ROIC Compounder £2.46 £3.05 £3.77 72
Growth Earnings
Growth-Adj P/E £4.76 £6.80 £8.84 68

Widest divergence: Growth Earnings (£6.80) versus Asset-Based (£1.48). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 191M GBX
Revenue growth (YoY) +29.4%
Net margin 3.8%
Return on equity 17.1%
Free cash flow 4.7M GBX FY2026
P/E ratio 12.5
More key figures
Operating margin 7.4%
EPS (TTM) £0.3500
EPS growth (YoY) +180%
Net debt 11.4M GBX FY2026

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 71/100

Of which business quality 68 · Market factors (momentum, volatility) 55

Profitability 68
Margins and returns on capital today
Quality Growth 89
Are margins and returns improving?
Cashflow 32
Earnings quality: real cash, not paper profit
Fin. Strength 66
Balance sheet, leverage, solvency risk
Investment 82
Disciplined investing over empire-building
Low Volatility 54
Calm price path (market factor)
Momentum 54
Price trend over the last 3–12 months (market factor)
52W Momentum 58
Distance to the 52-week high (market factor)
Net Issuance 92
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

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.

Full company description

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. 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.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

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.

Growth Quality 66/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
£191M
Latest YoY
+30.0%
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.
+7.9%
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.
+3.9%
Avg. growth/yr (13Y) 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.
+23.5%
Revenue +6.6%/yr
FY22 £148M
FY23 £152M
FY24 £144M
FY25 £147M
FY26 £191M
Net income +18.4%/yr
FY22 £3.7M
FY23 −£644K
FY24 £651K
FY25 £832K
FY26 £7.3M

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Cite: Fair Value Calculator (2026). "Gear4music (Holdings) plc Fair Value". https://www.fairvalue-calculator.com/stock/G4M

Peer Group

Internet Retail · 109 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 71 · Top 25%
Fair Value upside +126% · Top 25%
Return on equity (TTM) 17% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 4% · Above median
Operating margin (TTM) 7% · Top 25%
Revenue growth 29% · Top 25%
Debt / equity 0.28× · Higher than median

Valuation Multiples vs Internet Retail median · lower = cheaper

P/E (TTM) 7.9× · Cheaper than 75% of peers
P/B 1.70× · Pricier than median
P/S (TTM) 0.41× · Cheaper than median
P/FCF 16.8× · Pricier than 75% of peers
EV/EBITDA 6.7× · Cheaper than median
PEG 0.78× · 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 34
FUTURE 100 · sector 39
PAST 68 · sector 7
HEALTH 86 · sector 94
DIVIDEND 0 · sector 39

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 Internet Retail stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
Amazon.com, Inc AMZN $245.34 $127.67 -48%
Alibaba Group BABA $114.97 $75.75 -34%
PDD Holdings PDD $84.14 $223.51 +166%
MercadoLibre, Inc MELI $1,814 $798.98 -56%
DoorDash, Inc DASH $190.16 $38.64 -80%
Sea Limited SE $106.22 $52.70 -50%
eBay Inc EBAY $117.20 $60.13 -49%
JD.com, Inc JD €25.95 €31.88 +23%
Coupang, Inc CPNG $16.86 $2.79 -83%
Delivery Hero SE DHER €38.18 €12.71 -67%

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Frequently asked questions

Is Gear4music (Holdings) plc (G4M) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of £6.28 versus a price of £2.78, about +126% (undervalued).
What is the fair value of G4M?
Our model-based fair value for Gear4music (Holdings) plc is £6.28 (as of Jul 16, 2026), built from audited fundamentals. The current price is £2.78.
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 revenue of Gear4music (Holdings) plc (G4M)?
Gear4music (Holdings) plc reported trailing-twelve-month revenue of about £166M (latest available figure, as of Jul 16, 2026).
What is the net profit margin of G4M?
The net profit margin of Gear4music (Holdings) plc is about 2.5%, meaning it keeps roughly 2.5% of revenue as net income. Based on the latest reported figures.

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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