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Safestay plc (SSTY) Fair Value & Analysis

Consumer Cyclical · GB · Market cap 9.1M GBX

SP Safestay plc SSTY · LSE
Price£0.1400
Fair Value£0.4200
Upside+200.0%
Quality42/100
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Mixed Growth
Loss-making · -48.8% net margin
Moderate debt · generates free cash flow
Trails peers (3/12)
Narrow moat 14/100
Evidence: Medium Range £0.1693 – £0.4200 Share as image

Fair value as of: Jul 16, 2026

From 12 valuation models · updated 25 days ago

Fair value updated Jul 16, 2026, revised from £0.3900 to £0.4200 (+7.7%) since Jun 26, 2026. Share price −51.9% over the past month.

Below-average quality, screening 200% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (42/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (£0.1693). The market is more pessimistic than our downside scenario.
  • A fairly wide model range (£0.1693 to £0.4200) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

£0.3188 £0.1292 Fair Value £0.4200 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 £0.1292 – £0.3188 · fair‑value band £0.1693 – £0.4200 · the £0.1400 price screens below the £0.4200 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

Safestay plc (SSTY) currently trades at £0.1400, while our model-based Fair Value estimate is £0.4200, implying the stock looks roughly 200.0% undervalued today. The Quality Score stands at 42/100 (below-average 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: medium), always confirm before acting.

Over the trailing twelve months, Safestay plc generated revenue of £21.9M at a net margin of -2.2%. Revenue declined 5.7% year over year. It earns a return on equity of -2.9%. Net debt stands at £45.6M. Fundamentals as of Jul 16, 2026

Our scenario range runs from £0.1693 (bear case) to £0.4200 (bull case); at £0.1400, 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 -62% fair-value upside, at 200%, SSTY 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 £0.1500 £0.3900 £0.8200 80
Rev-Margin DCF £0.0700 £0.3600 £0.8900 74
Gordon GGM £0.0100 £0.0100 £0.0100 70
All 12 models by family
DCF Models
FCF DCF £0.1800 £0.3600 £0.9000 38
5Y Revenue Exit £0.0700 £0.2800 £0.7300 39
5Y EBITDA Exit £0.2100 £0.5800 £1.30 41
10Y Revenue Exit £0.1000 £0.4400 £0.6500 36
10Y EBITDA Exit £0.2000 £0.7000 £1.61 37
Dividend Discount
Gordon GGM £0.0100 £0.0100 £0.0100 70
DDM Multi-Stage £0.0100 £0.0100 £0.0100 61
Multiples
EV/EBITDA £0.2400 £0.4100 £0.5800 54
EV/Revenue £0.1000 £0.2200 43
Asset-Based
NCAV (Graham) £0.1100 £0.1500 £0.2200 50
Growth DCF
Growth DCF £0.1500 £0.3900 £0.8200 80
Rev-Margin DCF £0.0700 £0.3600 £0.8900 74

Widest divergence: DCF Models (£0.4400) versus Dividend Discount (£0.0100). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 20.6M GBX
Revenue growth (YoY) -11.0%
Net margin -48.8%
Return on equity -47.3%
Free cash flow 2.5M GBX FY2025
Operating margin -8.8%
More key figures
EPS (TTM) £-0.1500
EPS growth (YoY) +622%
Net debt 45.6M GBX FY2025

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

Quality Score breakdown

Overall quality 42/100

Of which business quality 41 · Market factors (momentum, volatility) 24

Profitability 8
Margins and returns on capital today
Quality Growth 14
Are margins and returns improving?
Cashflow 64
Earnings quality: real cash, not paper profit
Fin. Strength 14
Balance sheet, leverage, solvency risk
Investment 99
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 18
Price trend over the last 3–12 months (market factor)
52W Momentum 6
Distance to the 52-week high (market factor)
Net Issuance 81
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

Safestay plc, together with its subsidiaries, develops and operates hostels under the Safestay brand in the United Kingdom, Spain, and the rest of Europe. It provides ancillary goods and services, such as food, beverages, and merchandise. The company also owns properties.

Full company description

Safestay plc, together with its subsidiaries, develops and operates hostels under the Safestay brand in the United Kingdom, Spain, and the rest of Europe. It provides ancillary goods and services, such as food, beverages, and merchandise. The company also owns properties. Safestay plc was incorporated in 2014 and is headquartered in London, the United Kingdom.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Safestay plc reported revenue of £20.6M in FY2025 versus £5.8M in FY2021, a compound +37.2%/yr. Reported net income was −£10.1M in FY2025.

Growth Quality 61/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
£20.6M
Latest YoY
−8.5%
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.
+4.3%
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.
+43.6%
Avg. growth/yr (12Y) 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.
+21.8%
Revenue +37.2%/yr
FY21 £5.8M
FY22 £18.1M
FY23 £21.5M
FY24 £22.5M
FY25 £20.6M
Net income
FY21 −£7.6M
FY22 −£149K
FY23 −£1.3M
FY24 −£891K
FY25 −£10.1M

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

Peer Group

Lodging · 168 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 42 · Below median
Fair Value upside +200% · Top 25%
Return on assets -0% · Bottom 25%
Net margin (TTM) -49% · Bottom 25%
Operating margin (TTM) -9% · Bottom 25%
Revenue growth -11% · Bottom 25%
Debt / equity 1.44× · Higher than 75% of peers

Valuation Multiples vs Lodging median · lower = cheaper

P/B 0.85× · Cheaper than median
P/S (TTM) 0.60× · Cheaper than median
P/FCF 4.9× · Pricier than median
EV/EBITDA 22.8× · Pricier 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 100 · sector 1
FUTURE 0 · sector 18
PAST 0 · sector 11
HEALTH 28 · sector 90
DIVIDEND 0 · sector 23

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

Stock Price Fair Value vs Fair Value
Marriott International, Inc MAR $369.05 $135.64 -63%
Hilton Worldwide Holdings HLT $328.48 $123.67 -62%
InterContinental Hotels Group IHG $159.87 $85.18 -47%
Hyatt Hotels Corporation H $191.00 $47.69 -75%
H World Group HTHT $42.67 $47.55 +11%
Accor SA AC €47.25 €39.26 -17%
The Indian Hotels Company INDHOTEL ₹743.20 ₹260.68 -65%
Wyndham Hotels & Resorts, Inc WH $78.54 $24.02 -69%
Hanjin Kal, 180640 113,500 KRW 36,890 KRW -67%
Jabal Omar Development Company 4250 16.00 SAR 11.64 SAR -27%

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Frequently asked questions

Is Safestay plc (SSTY) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of £0.4200 versus a price of £0.1400, about +200% (undervalued).
What is the fair value of SSTY?
Our model-based fair value for Safestay plc is £0.4200 (as of Jul 16, 2026), built from audited fundamentals. The current price is £0.1400.
What is the quality score of SSTY?
Safestay plc has a Quality Score of 42/100. 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 Safestay plc (SSTY)?
Safestay plc reported trailing-twelve-month revenue of about £21.9M (latest available figure, as of Jul 16, 2026).
What is the net profit margin of SSTY?
The net profit margin of Safestay plc is about -2.2%, meaning it is currently running at a net loss. 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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