Gooch & Housego Plc (GHH) fair value: what the stock is really worth
As of Oct 16, 2026: fair value (intrinsic value) of Gooch & Housego Plc stock £2.71, price £12.25, that is 77.9% below the price, quality 49 out of 100. Rating: strongly overvalued. Calculated from audited financials with 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 11, 2026.
How to read this chart
60‑month range £3.61 – £13.15 · fair‑value band £1.33 – £3.50 · the £12.25 price screens above the £2.71 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 11, 2026.
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Gooch & Housego PLC engages in the manufacture and sale of acousto-optics, electro-optics, fiber optics, and precision optics and systems in the United Kingdom, North America, Europe, the Asia Pacific, and internationally. The company operates through A&D, Life Sciences, and Industrial segments.
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It offers acousto-optic products, such as acoustic-optic modulators, deflectors, frequency shifters, mode lockers, pulse pickers, Q-switches, tunable filters, and RF drivers; crystal optics, including crystals and nonlinear optics, lithium niobate wafers, and periodically-poled lithium niobite; and electro-optics, such as pockels cells, lithium niobate Q-switches, and pockels cell drivers.
The company also provides fiber optics, such as fiber-coupled acousto-optic modulators, high power combiners, PM and SM couplers, polarization diverse receivers, ruggedized and wideband couplers, and variable optical delay line; precision optics, including beam splitters, corner cubes, optical domes, optical windows and flats, polymer optics, precision lenses, precision mirrors, precision prisms, ring laser gyroscope components, synchrotron mirrors, waveplates, optical bindings, magnetorheological finishing, optical coatings, single point diamond turning, and super polishing; lens systems; and vision systems for armored fighting vehicles, including embedded image periscope and sighting systems, enhanced drivers vision system, saber commander/gunner sights, spares and repairs, specter camera modules, and unity vision periscopes; and medical devices, in-vitro diagnostics, and laboratory instruments.
Its products are used in semiconductor and microelectronic, metrology, telecommunications, remote sensing, and scientific research industries. The company serves aerospace and defense, industrial and telecom, life sciences markets.
Gooch & Housego PLC was founded in 1948 and is headquartered in Ilminster, the United Kingdom.
Stock analysis
Gooch & Housego Plc (GHH) currently trades at £12.25, while our model-based Fair Value estimate is £2.71, 78% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of £5.56 per share, and 1 of the 26 models we run sit above the £12.25 price.
Bear case: the Dividend Discount group reads lowest at £1.62, and 25 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: £1.33 (bear) to £3.50 (bull), the price of £12.25 sits above 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 49/100 (below-average quality), in the Technology sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Gooch & Housego Plc reported revenue of £150M in FY2025 versus £124M in FY2021, a compound +4.9%/yr. Reported net income was £3.5M in FY2025, compounding +1.0%/yr from FY2021.
Key figures
Market cap £340M Small · P/E ratio 87.5 · P/S ratio 2.10 · EPS (TTM) £0.1400 · Dividend yield 1.1% · Net margin 2.4% · Return on equity 3.4% · Return on assets (EBIT) 4.8% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 33 out of 100 (low confidence).
What moves the price
The share trades at its 52-week high and 163% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at −14% fair-value upside, at −78%, GHH screens richer than that median.
Fair Value models
The price assumes far more growth than our models allow for, so the models scatter widely (£0.0500 to £13.22). Read the Fair Value as a cautious anchor, not a price target; the Growth Forecast section shows what the price assumes.
Bear£1.33Fair Value £2.71Bull£3.50
Price £12.25 · Downside -77.9%
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 2025 figures (about 12 months old). Earnings retained since then (£0.0080 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.62/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+10.7%
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.
+6.4%
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.
+4.3%
Start year 2020 (pandemic). Over 10 years: +6.7% a year
Revenue growth 30 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.
+14.6%
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What shareholders gained per year (last 5 years) ⓘ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.
−1.2%
Earnings growth per share plus dividend.
Earnings per share, growth per year−2.3%
Dividend (yield on the price)1.1%
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.−2.3% vs −7.3%, picking up
Profit margin 2020 to 2025 ⓘ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.8% → 7%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
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).
+57.4%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+10.5%
Yearly sales growth analysts expect, extended to five years.
After inflation (UK: IMF forecast 2.3% a year to 2030, 3.3% from 2016 to 2025) that is about +53.8% a year for the price and +8.0% for the forecasts.
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.Electronic Components · 690 stocks
Beats the industry median on 3/14 measures
Overall it trails its industry peers.
Valuation
Quality Score49 · Below median
Fair Value upside−77.9% · Bottom 25%
Profitability
Return on equity (12 months)3.4% · Below median
Return on assets1.7% · Below median
Net margin (12 months)2.4% · Below median
Operating margin (12 months)6.9% · Above median
Growth and dividend
Revenue growth (quarter YoY)15.5% · Above median
Dividend yield (12 months)1.1% · Below median
Balance sheet
Debt / equity0.32× · Highest 25%
Valuation Multiplesvs Electronic Components median · lower = cheaper
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Is Gooch & Housego Plc (GHH) overvalued or undervalued?
As of Nov 11, 2026, our model estimates a fair value of £2.71 versus the last price from Oct 16, 2026 of £12.25, about 78% lower (overvalued).
What is the fair value of GHH?
Our model-based fair value for Gooch & Housego Plc is £2.71 (as of Nov 11, 2026), built from audited fundamentals. Last price (from Oct 16, 2026): £12.25.
What is the quality score of GHH?
Gooch & Housego Plc has a Quality Score of 49/100. 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 Gooch & Housego Plc (GHH)?
Our model-based price target is the fair value of £2.71 (as of Nov 11, 2026) from 26 valuation models. Cautious scenario £1.33, optimistic scenario £3.50. It is a calculation from audited fundamentals, not an analyst target.
What is the Gooch & Housego Plc stock forecast for 2026?
Our models put fair value at £2.71, about 78% lower versus the last price from Oct 16, 2026 of £12.25 (overvalued). Cautious scenario £1.33, optimistic scenario £3.50. The calculation is refreshed regularly with new filings.
What is the revenue of Gooch & Housego Plc (GHH)?
Gooch & Housego Plc reported trailing-twelve-month revenue of about £161M (latest available figure, as of Nov 11, 2026).
Does Gooch & Housego Plc pay a dividend?
Gooch & Housego Plc currently shows a dividend yield of 1.08% relative to its recent price (as of Nov 11, 2026).
How much is the dividend of Gooch & Housego Plc (GHH) and when is the ex-dividend date?
Gooch & Housego Plc pays a dividend of £0.132 per share a year, a dividend yield of 1.1%. The last ex-dividend date was Jun 18, 2026. A dividend has been paid every year since 2011. The payout ratio is 94.3% of earnings. Free cash flow covers the dividend 0.63 times. Our assessment: Watch coverage. The dividend isn’t fully covered by free cash flow or earnings, part of it is funded from reserves or debt. Fine for now, but worth watching: if it stays uncovered, the dividend could be cut.
What growth is priced into Gooch & Housego Plc (GHH)?
For today's price to be fair in a discounted-cash-flow model, Gooch & Housego Plc would have to grow free cash flow by +57.4 % per year for five years (discount rate 11.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +4.3 % per year. As of Nov 11, 2026.
What discount rate (WACC) does the fair value of GHH use?
Our models discount Gooch & Housego Plc at 11.4 %: a base by market capitalisation (small), damped by beta 0.88, 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 Gooch & Housego Plc that is +57.4 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (11.4 %) and the same formula as our fair value.
How much growth has Gooch & Housego Plc (GHH) delivered so far?
Over the past 5 years revenue at Gooch & Housego Plc grew +4.3 % a year. The price currently implies free-cash-flow growth of +57.4 % 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 Gooch & Housego Plc (GHH) growing?
The median revenue growth in the sector is +11.5 % a year. That is the yardstick for the growth priced into Gooch & Housego Plc (+57.4 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Gooch & Housego Plc (GHH)?
The free-cash-flow yield on the price is 0.67 %: that much free cash flow Gooch & Housego Plc produces per unit of market value. When it exceeds the discount rate of our models (11.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Gooch & Housego Plc (GHH)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Gooch & Housego Plc it is £2.71 per share (as of Nov 11, 2026), against a price of £12.25. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Gooch & Housego Plc stock overvalued or undervalued in 2026?
As of Nov 11, 2026, GHH trades above its calculated fair value: price £12.25, fair value £2.71, a gap of about −78% (overvalued). 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 GHH?
No. The price is what the market pays today (£12.25); the fair value is what the company's own numbers justify (£2.71). For Gooch & Housego Plc the two are £9.54 per share apart. That gap is exactly why we show both numbers side by side.
How much is Gooch & Housego Plc worth?
The market values Gooch & Housego Plc at about £340M (market capitalisation, as of Nov 11, 2026). Per share that is £12.25; our models calculate a fair value of £2.71 per share.
What do the bullish and bearish scenarios say about GHH?
Our models span a range for Gooch & Housego Plc: cautious scenario £1.33, base £2.71, optimistic £3.50 per share (as of Nov 11, 2026, price £12.25). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of GHH?
Gooch & Housego Plc trades at a price-to-earnings ratio of 87.5 (as of Nov 11, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of £2.71 is built from several models across several years. Median P/E at fiscal year-end, 8 fiscal years (2016 to 2025), reported earnings: 51.9. Other multiples: P/B 2.9, P/S 2.1, EV/EBITDA 17.0.
How solid is the balance sheet of Gooch & Housego Plc (GHH)?
Balance-sheet figures for Gooch & Housego Plc (as of Nov 11, 2026): return on equity 3.4%, debt of 0.32 per unit of equity. They feed the Quality Score of 49/100, which measures business quality independently of the share price.
How far is GHH from its 52-week high?
Gooch & Housego Plc trades at £12.25, at its 52-week high of £12.30 and 163% above the low of £4.65 (as of Oct 16, 2026). Distance from the high says nothing about value: that is what the fair value of £2.71 is for.
Which stocks are comparable to Gooch & Housego Plc?
From the same area (Technology) we also value Amphenol Corporation, Hon Hai Precision Industry Co, Corning Incorporated, Delta Electronics, Inc, 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 Gooch & Housego Plc stock attractive at the current price?
The data as of Nov 11, 2026: price £12.25, calculated fair value £2.71 (−78%), Quality Score 49/100, from 26 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 GHH calculated?
We run Gooch & Housego Plc through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of £2.71 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 14.0% above its aggregate fair value. Gooch & Housego Plc itself currently trades above fair value. 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 Gooch & Housego Plc (GHH)?
The latest price we hold is from Oct 16, 2026 and stands at £12.25. Our model-based fair value is £2.71, about 78% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Gooch & Housego Plc right now?
The price sits above even our optimistic bull case (£3.50). The favourable scenario is already priced in. Weak quality (49/100) and above fair value at the same time, the margin of safety is missing on both counts. The model range is unusually wide (£1.33 to £3.50). The outcome hinges heavily on assumptions, so read the point estimate with caution.
Where does the earnings growth of Gooch & Housego Plc (GHH) come from?
Earnings per share at Gooch & Housego Plc grew −6.6 % a year from 2014 to 2025. Broken into its drivers: revenue per share +6.8 %, EBIT margin −6.4 %, tax rate +0.4 %, residual (interest, one-offs) −6.9 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Gooch & Housego Plc
How large is the market capitalisation of Gooch & Housego Plc (GHH)?
The market capitalisation of Gooch & Housego Plc is £340M. 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 Gooch & Housego Plc (GHH)?
The price-to-sales ratio of Gooch & Housego Plc is 2.10 (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 Gooch & Housego Plc (GHH)?
Earnings per share at Gooch & Housego Plc are £0.1400 (price ÷ EPS = P/E 87.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Gooch & Housego Plc (GHH)?
The dividend yield of Gooch & Housego Plc is 1.1% (payout 94.3%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Gooch & Housego Plc (GHH)?
The net margin of Gooch & Housego Plc is 2.4% (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 Gooch & Housego Plc (GHH)?
The return on equity (ROE) of Gooch & Housego Plc is 3.4% (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 Gooch & Housego Plc (GHH)?
On an EBIT basis the return on assets of Gooch & Housego Plc is 4.8% (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 Gooch & Housego Plc (GHH)?
The operating margin of Gooch & Housego Plc is 6.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Gooch & Housego Plc (GHH)?
Revenue at Gooch & Housego Plc is growing +15.5% versus a year earlier (3y avg +6.4%). 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 Gooch & Housego Plc (GHH)?
Earnings per share at Gooch & Housego Plc are growing +12.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Gooch & Housego Plc (GHH) carry?
The net debt of Gooch & Housego Plc is £43.9M (fiscal year 2025, ≈ 19.3 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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Broad data
Nov 11, 2026