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RWS Holdings (RWS) Fair Value & Analysis

Technology · GB · Market cap 277M GBX

RH RWS Holdings RWS · LSE
Price£0.7745
Fair Value£0.8600
Upside+11.0%
Quality54/100
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Mixed Growth
Loss-making · -13.6% net margin
Low debt · generates free cash flow
8.80% dividend yield
Trails peers (5/13)
Narrow moat 17/100
Evidence: High Range £0.6100 – £1.10 Share as image

Fair value as of: Jul 14, 2026

From 15 valuation models · updated 27 days ago

Fair value updated Jul 14, 2026, revised from £3.25 to £0.8600 (−73.5%) since Jun 24, 2026. Share price +57.5% over the past month.

A solid business, screening 11% undervalued on our models.

What matters now

  • A fairly wide model range (£0.6100 to £1.10) leaves room in how you read the outcome.
  • Our model range runs from £0.6100 (bear) to £1.10 (bull), base £0.8600. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 54/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

£3.34 £0.3680 Fair Value £0.8600 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 14, 2026.

How to read this chart

60‑month range £0.3680 – £3.34 · fair‑value band £0.6100 – £1.10 · the £0.7745 price screens below the £0.8600 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 14, 2026.

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Analysis

RWS Holdings (RWS) currently trades at £0.7745, while our model-based Fair Value estimate is £0.8600, implying the stock looks roughly 11.0% undervalued today. The Quality Score stands at 54/100 (solid quality), in the Technology 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, RWS Holdings generated revenue of £690M at a net margin of -14.5%. Revenue declined 6.0% year over year. It earns a return on equity of -12.0%. Net debt stands at £47.9M. Fundamentals as of Jul 14, 2026

Our scenario range runs from £0.6100 (bear case) to £1.10 (bull case); at £0.7745, 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 -25% fair-value upside, at 11%, RWS 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 £1.76 £2.89 £4.64 80
Rev-Margin DCF £1.08 £1.71 £3.03 74
ROIC Compounder £0.3000 £0.3500 £0.3800 72
All 15 models by family
DCF Models
FCF DCF £1.89 £2.67 £4.96 38
5Y Revenue Exit £0.9900 £1.48 £2.49 39
5Y EBITDA Exit £2.26 £4.05 £7.55 41
10Y Revenue Exit £1.30 £2.29 £2.73 36
10Y EBITDA Exit £2.12 £4.62 £8.95 37
Earnings-Based
EPV £0.3000 £0.3500 £0.3800 59
Dividend Discount
Gordon GGM £0.8600 £1.44 £1.87 70
DDM Multi-Stage £0.8600 £1.37 £1.55 61
Multiples
EV/EBIT £0.6700 £0.9200 £1.16 53
EV/EBITDA £2.47 £3.31 £4.16 54
EV/Revenue £0.4600 £0.6800 £0.9100 43
Asset-Based
NCAV (Graham) £1.03 £1.38 £2.06 50
Growth DCF
Growth DCF £1.76 £2.89 £4.64 80
Rev-Margin DCF £1.08 £1.71 £3.03 74
Economic Profit
ROIC Compounder £0.3000 £0.3500 £0.3800 72

Widest divergence: DCF Models (£2.67) versus Earnings-Based (£0.3500). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 706M GBX
Revenue growth (YoY) +4.6%
Net margin -13.6%
Return on equity -11.9%
Free cash flow 61.2M GBX FY2025
Operating margin -2.0%
More key figures
EPS (TTM) £-0.2600
Dividend yield 8.8%
EPS growth (YoY) -45.0%
Net debt 47.9M GBX FY2025

Figures from reported company fundamentals · as of Jul 14, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 55 · Market factors (momentum, volatility) 72

Profitability 18
Margins and returns on capital today
Quality Growth 18
Are margins and returns improving?
Cashflow 62
Earnings quality: real cash, not paper profit
Fin. Strength 59
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 58
Calm price path (market factor)
Momentum 68
Price trend over the last 3–12 months (market factor)
52W Momentum 97
Distance to the 52-week high (market factor)
Net Issuance 93
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

RWS Holdings plc engages in the provision of artificial intelligence (AI) solutions in the United States, the United Kingdom, continental Europe, and internationally. The company operates through three segments: Generate, Transform, and Protect.

Full company description

RWS Holdings plc engages in the provision of artificial intelligence (AI) solutions in the United States, the United Kingdom, continental Europe, and internationally. The company operates through three segments: Generate, Transform, and Protect. The Generate segment provides solutions that enable enterprises and governments to organise, enrich, and manage the publication of their content and data. It also provides AI data services, including multilingual data annotation, reinforcement learning with human feedback, prompt and instruction tuning, safety and bias testing, and synthetic data validation. The Transform segment is involved in the localization, adaption, and testing of various content formats, including text, voice, video, audio, and software. The Protect segment provides patent search, filing, and translation foundations services, as well as renewals and recordals. The company also offers employment services. It serves aerospace and defense, automotive, energy, financial, government, legal, life sciences, luxury brands, managed care, manufacturing, media and entertainment, retail, technology, telecommunications, and travel and hospitality industries. RWS Holdings plc was founded in 1958 and is headquartered in Maidenhead, the United Kingdom.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

RWS Holdings reported revenue of £690M in FY2025 versus £695M in FY2021, a compound −0.2%/yr. Reported net income was −£99.8M in FY2025.

Growth Quality 53/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
£690M
Latest YoY
−3.9%
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.
−2.7%
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.
+14.2%
Avg. growth/yr (24Y) 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.
+29.7%
Revenue −0.2%/yr
FY21 £695M
FY22 £749M
FY23 £734M
FY24 £718M
FY25 £690M
Net income
FY21 £41.2M
FY22 £62.7M
FY23 −£27.7M
FY24 £47.5M
FY25 −£99.8M

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

Peer Group

Information Technology Services · 475 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 54 · Below median
Fair Value upside +11% · Above median
Return on assets 1% · Below median
Net margin (TTM) -14% · Bottom 25%
Operating margin (TTM) -2% · Bottom 25%
Revenue growth 5% · Below median
Dividend yield (TTM) 8.8% · Top 25%
Debt / equity 0.08× · Higher than median

Valuation Multiples vs Information Technology Services median · lower = cheaper

P/B 0.49× · Cheaper than 75% of peers
P/S (TTM) 0.53× · Cheaper than median
P/FCF 6.1× · Pricier than median
EV/EBITDA 4.8× · Cheaper than 75% of peers

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 48 · sector 21
FUTURE 23 · sector 31
PAST 0 · sector 37
HEALTH 96 · sector 97
DIVIDEND 100 · sector 37

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 Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Jul 14, 2026).

Stock Price Fair Value vs Fair Value
International Business Machines Corporation IBM $235.92 $143.90 -39%
Accenture plc ACNN 2,460 MXN 250.95 MXN -90%
Infosys Limited INFY ₹1,156 ₹1,457 +26%
HCL Technologies Limited HCLTECH ₹1,204 ₹1,230 +2%
Wipro Limited WIPRO ₹178.43 ₹226.81 +27%
Tech Mahindra Limited TECHM ₹1,455 ₹1,086 -25%
Samsung SDS Co 018260 199,300 KRW 196,390 KRW -1%
Persistent Systems Limited PERSISTENT ₹5,059 ₹2,364 -53%
Hyundai Autoever Corporation 307950 393,000 KRW 133,088 KRW -66%
Coforge Limited COFORGE ₹1,541 ₹702.84 -54%

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Frequently asked questions

Is RWS Holdings (RWS) overvalued or undervalued?
As of Jul 14, 2026, our model estimates a fair value of £0.8600 versus a price of £0.7745, about +11% (undervalued).
What is the fair value of RWS?
Our model-based fair value for RWS Holdings is £0.8600 (as of Jul 14, 2026), built from audited fundamentals. The current price is £0.7745.
What is the quality score of RWS?
RWS Holdings has a Quality Score of 54/100. 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 RWS Holdings (RWS)?
RWS Holdings reported trailing-twelve-month revenue of about £690M (latest available figure, as of Jul 14, 2026).
What is the net profit margin of RWS?
The net profit margin of RWS Holdings is about -14.5%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does RWS Holdings pay a dividend?
RWS Holdings currently shows a dividend yield of about 6.53% relative to its recent price (as of Jul 14, 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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