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RKW Fair Value & Analysis

Financial Services · GB · Market cap 191M GBX

R RKW RKW · LSE
Price£3.18
Fair Value£1.26
Upside-60.4%
Quality33/100
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Mixed Growth
Highly profitable · 80.4% net margin
negative free cash flow
Trails peers (4/11)
Wide moat 70/100
Evidence: Medium Range £0.9435 – £1.57 Share as image

Fair value as of: Jul 17, 2026

From 6 valuation models · updated 24 days ago

Share price +3.9% over the past month.

Below-average quality, and screening another 60% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (£1.57). The favourable scenario is already priced in.
  • Weak quality (33/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

£3.22 £1.36 Fair Value £1.26 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range £1.36 – £3.22 · fair‑value band £0.9435 – £1.57 · the £3.18 price screens above the £1.26 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 17, 2026.

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Analysis

RKW (RKW) currently trades at £3.18, while our model-based Fair Value estimate is £1.26, implying the stock looks roughly 60.4% overvalued today. The Quality Score stands at 33/100 (below-average quality), in the Financial Services 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: medium).

Over the trailing twelve months, RKW generated revenue of £13.8M at a net margin of 80.4%. Revenue declined 15.5% year over year. It earns a return on equity of 10.0%. The balance sheet holds a net cash position of £4.8M. Fundamentals as of Jul 17, 2026

Our scenario range runs from £0.9435 (bear case) to £1.57 (bull case); at £3.18, the current price sits above 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 Financial Services peers we cover trades at -12% fair-value upside, at -60%, RKW screens richer 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
Residual Income £1.74 £1.63 £1.21 76
P/E Multiple £0.8500 £1.13 £1.41 63
P/B Multiple £1.11 £1.48 £1.85 55
All 6 models by family
Earnings-Based
Graham-Dodd £0.5900 £4.13 £5.79 54
Lynch FV £2.13 £3.05 £3.96 50
Multiples
P/E Multiple £0.8500 £1.13 £1.41 63
P/B Multiple £1.11 £1.48 £1.85 55
Asset-Based
NCAV (Graham) £1.33 £1.78 £2.65 50
Economic Profit
Residual Income £1.74 £1.63 £1.21 76

Widest divergence: Earnings-Based (£3.05) versus Multiples (£1.13). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 13.8M GBX
Revenue growth (YoY) -15.5%
Net margin 80.4%
Return on equity 10.0%
Free cash flow −1.8M GBX FY2026
P/E ratio 31.5
More key figures
Operating margin 85.9%
EPS (TTM) £0.2200
EPS growth (YoY) -37.7%
Net cash 4.8M GBX FY2026

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 33/100

Of which business quality 33 · Market factors (momentum, volatility) 66

Profitability 34
Margins and returns on capital today
Quality Growth 0
Are margins and returns improving?
Cashflow 33
Earnings quality: real cash, not paper profit
Fin. Strength 78
Balance sheet, leverage, solvency risk
Investment 33
Disciplined investing over empire-building
Low Volatility 87
Calm price path (market factor)
Momentum 49
Price trend over the last 3–12 months (market factor)
52W Momentum 71
Distance to the 52-week high (market factor)
Net Issuance 0
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

Rockwood Strategic Plc specializes in PIPE, pre-IPO, growth and acquisition, recovery capital investments. The fund invests in financial services, media, information and communication technology, digital information and technology, healthcare, and life sciences.

Full company description

Rockwood Strategic Plc specializes in PIPE, pre-IPO, growth and acquisition, recovery capital investments. The fund invests in financial services, media, information and communication technology, digital information and technology, healthcare, and life sciences. It prefers to invest in companies based in United Kingdom and Europe and can also co-invest outside Europe with local venture capital firms. The fund also seeks to make follow on investments. It invests in companies with market capitalizations of less than £250 million ($316.50 million) and seeks to acquire stakes between 5% and 25% for cash or share consideration. It seeks to invest between three to five years. The fund invests in smaller public companies as well as private companies. It invests in public companies that are listed on FTSE All-share and AIM All-Share Index; stocks trading greater than 50% below 3-year price high; EV or EBITDA less than 7 times, gearing more than 75%, ROCE greater than 10%, FCF Yield greater than 10%. The fund invests in private companies in P2P opportunities, equity and equity-related instruments, preferred equity, preferred quasi equity positions including convertible and non-convertible debt instruments, and mezzanine preferred instruments. It attracts portfolio in scenarios - excluding cash, portfolio trades on a weighted average EV or EBITDA greater than 5 times; generating in excess of 10% growth in 2017 based on broker forecasts. The fund targets 15% net IRR over the long-term.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

RKW reported revenue of £10.2M in FY2026 versus £16.3M in FY2022, a compound −11.1%/yr. Reported net income was £4.9M in FY2026, compounding −22.9%/yr from FY2022.

Growth Quality 47/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
£10.2M
Latest YoY
−38.0%
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.
−10.0%
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.
+30.3%
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.
−0.9%
Revenue −11.1%/yr
FY22 £16.3M
FY23 £14.0M
FY24 £3.8M
FY25 £16.5M
FY26 £10.2M
Net income −22.9%/yr
FY22 £13.8M
FY23 £8.4M
FY24 £2.9M
FY25 £13.6M
FY26 £4.9M

RKW screens 60% overvalued. Compare with Fondul Proprietatea SA →

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

Peer Group

Asset Management · 971 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 32 · Bottom 25%
Fair Value upside −60% · Bottom 25%
Return on equity (TTM) 10% · Above median
Return on assets 6% · Above median
Net margin (TTM) 80% · Top 25%
Operating margin (TTM) 86% · Above median
Revenue growth -16% · Bottom 25%

Valuation Multiples vs Asset Management median · lower = cheaper

P/E (TTM) 31.5× · Pricier than 75% of peers
P/B 1.72× · Pricier than 75% of peers
P/S (TTM) 18.73× · Pricier than 75% of peers
EV/EBITDA 16.3× · 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 0 · sector 37
FUTURE 0 · sector 6
PAST 40 · sector 26
HEALTH 0 · sector 95
DIVIDEND 0 · sector 69

VALUE 0: the price sits above our fair-value range.

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 Asset Management stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

Stock Price Fair Value vs Fair Value
Fondul Proprietatea SA FP $0.0420 $0.0800 +90%
BlackRock, Inc BLK $1,136 $465.75 -59%
Blackstone Inc BX $124.56 $16.35 -87%
Investor AB INVEB kr 423.70 kr 847.40 +100%
Brookfield Corporation BN C$62.45 C$10.12 -84%
KKR & Co KKR $100.94 $44.88 -56%
AB Industrivärden INDUA kr 532.50 kr 1,065 +100%
Jio Financial Services Limited JIOFIN ₹242.98 ₹40.19 -83%
Hedef Holding HEDEF 267.25 TRY 320.98 TRY +20%
Bajaj Holdings BAJAJHLDNG ₹10,398 ₹9,202 -12%

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Frequently asked questions

Is RKW overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of £1.26 versus a price of £3.18, about −60% (overvalued).
What is the fair value of RKW?
Our model-based fair value for RKW is £1.26 (as of Jul 17, 2026), built from audited fundamentals. The current price is £3.18.
What is the quality score of RKW?
RKW has a Quality Score of 33/100. 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 RKW?
RKW reported trailing-twelve-month revenue of about £13.8M (latest available figure, as of Jul 17, 2026).
What is the net profit margin of RKW?
The net profit margin of RKW is about 80.4%, meaning it keeps roughly 80.4% 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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