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FW Thorpe Plc (TFW) Fair Value & Analysis

Industrials · GB · Market cap 292M GBX

FT FW Thorpe Plc TFW · LSE
Price£2.57
Fair Value£4.33
Upside+68.5%
Quality70/100
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Mixed Growth
Solidly profitable · 14.7% net margin
Low debt · generates free cash flow
2.75% dividend yield
Ranks above peers (11/14)
Moderate moat 59/100
Evidence: High Range £2.95 – £5.95 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated yesterday

Fair value updated Aug 13, 2026, revised from £4.55 to £4.33 (−4.8%) since Jul 12, 2026. Share price +0.4% over the past month.

A solid business, screening 68% undervalued on our models.

What matters now

  • The rarer combination: high quality (70/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The price is below even our cautious bear case (£2.95). The market is more pessimistic than our downside scenario.
  • A fairly wide model range (£2.95 to £5.95) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

£4.60 £2.40 Fair Value £4.33 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range £2.40 – £4.60 · fair‑value band £2.95 – £5.95 · the £2.57 price screens below the £4.33 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

FW Thorpe Plc (TFW) currently trades at £2.57, while our model-based Fair Value estimate is £4.33, implying the stock looks roughly 68.5% undervalued today. The Quality Score stands at 70/100 (solid quality), in the Industrials 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, FW Thorpe Plc generated revenue of £173M at a net margin of 14.7%. Revenue declined 2.4% year over year. It earns a return on equity of 14.1%. The balance sheet holds a net cash position of £37.8M. Fundamentals as of Aug 13, 2026

Our scenario range runs from £2.95 (bear case) to £5.95 (bull case); at £2.57, 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 Industrials peers we cover trades at -65% fair-value upside, at 68%, TFW 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 £2.57 £3.36 £4.31 80
Residual Income £1.47 £1.65 £2.44 76
Rev-Margin DCF £2.38 £3.47 £4.76 74
All 26 models by family
DCF Models
FCF DCF £2.57 £3.51 £4.71 38
Owner Earnings £2.59 £3.53 £4.73 31
5Y Revenue Exit £2.38 £3.46 £4.82 39
5Y EBITDA Exit £3.12 £4.86 £6.91 41
5Y P/E Exit £3.11 £4.85 £6.70 38
10Y Revenue Exit £2.39 £3.31 £4.53 36
10Y EBITDA Exit £2.84 £4.15 £5.91 37
10Y P/E Exit £2.84 £4.14 £5.77 35
Earnings-Based
Graham-Dodd £1.54 £5.22 £7.00 54
Lynch FV £1.19 £1.71 £2.22 50
PEG = 1.0 £1.19 £1.71 £2.22 46
EPV £1.98 £2.18 £2.33 59
Dividend Discount
Gordon GGM £0.6800 £1.14 £1.48 70
DDM Multi-Stage £0.6800 £1.06 £1.23 61
Multiples
P/E Multiple £3.57 £4.76 £5.95 63
P/S Multiple £2.35 £3.13 £3.91 58
P/B Multiple £2.89 £3.86 £4.82 55
EV/EBIT £3.96 £5.16 £6.35 53
EV/EBITDA £3.94 £5.14 £6.33 54
EV/Revenue £2.33 £3.18 £4.02 43
Asset-Based
NCAV (Graham) £0.8500 £1.13 £1.69 50
Growth DCF
Growth DCF £2.57 £3.36 £4.31 80
Rev-Margin DCF £2.38 £3.47 £4.76 74
Economic Profit
Residual Income £1.47 £1.65 £2.44 76
ROIC Compounder £2.04 £2.35 £2.69 72
Growth Earnings
Growth-Adj P/E £3.04 £4.35 £5.65 68

Widest divergence: Growth Earnings (£4.35) versus Dividend Discount (£1.06). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 173M GBX
Revenue growth (YoY) -2.4%
Net margin 14.7%
Return on equity 14.1%
Free cash flow 29.2M GBX FY2025
P/E ratio 11.7
More key figures
Operating margin 14.2%
EPS (TTM) £0.2200
Dividend yield 2.8%
EPS growth (YoY) +2.7%
Net cash 37.8M GBX FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 70/100

Of which business quality 70 · Market factors (momentum, volatility) 41

Profitability 58
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 71
Earnings quality: real cash, not paper profit
Fin. Strength 91
Balance sheet, leverage, solvency risk
Investment 72
Disciplined investing over empire-building
Low Volatility 78
Calm price path (market factor)
Momentum 31
Price trend over the last 3–12 months (market factor)
52W Momentum 18
Distance to the 52-week high (market factor)
Net Issuance 82
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

FW Thorpe Plc designs, manufactures, and supplies professional lighting equipment in the United Kingdom, the Netherlands, Germany, rest of Europe, and internationally.

Full company description

FW Thorpe Plc designs, manufactures, and supplies professional lighting equipment in the United Kingdom, the Netherlands, Germany, rest of Europe, and internationally. The company offers professional lighting and control systems, including recessed, surface, and suspended luminaires; emergency lighting systems; hazardous area lighting; high and low bay luminaires; lighting controls; and exterior lighting products for commercial, industrial, education, healthcare, manufacturing, logistics, retail, display, and hospitality markets. It also provides emergency general illumination, exit signage, and lighting systems for commercial, industrial, education, healthcare, infrastructure, retail, display, and hospitality markets. In addition, the company offers road and tunnel lighting, amenity lighting, cleanroom luminaires, lighting for signs, and road safety lighting for various sectors, such as pharmaceutical, research and development, advertising, and facilities. Further, it provides external and impact resistant lighting, which includes street lighting, outdoor wall, and ceiling luminaires, as well as control systems. FW Thorpe Plc was incorporated in 1936 and is headquartered in Redditch, the United Kingdom.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

FW Thorpe Plc reported revenue of £175M in FY2025 versus £118M in FY2021, a compound +10.4%/yr. Reported net income was £25.4M in FY2025, compounding +12.6%/yr from FY2021.

Growth Quality 83/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
£175M
Latest YoY
−0.3%
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.
+6.8%
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.
+9.1%
Avg. growth/yr (39Y) 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.
+8.4%
Revenue +10.4%/yr
FY21 £118M
FY22 £144M
FY23 £177M
FY24 £176M
FY25 £175M
Net income +12.6%/yr
FY21 £15.8M
FY22 £20.1M
FY23 £21.9M
FY24 £24.3M
FY25 £25.4M
Character of growth · EPS growth decomposed (2014-2025) +8.3 % p.a.
Revenue per share +9.9 pp

of which total revenue +10.0 pp · buybacks/dilution −0.1 pp

EBIT margin −1.0 pp
Tax rate +0.0 pp
Residual (interest, one-offs) −0.6 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "FW Thorpe Plc Fair Value". https://www.fairvalue-calculator.com/stock/TFW

Peer Group

Electrical Equipment & Parts · 524 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 70 · Top 25%
Fair Value upside +68% · Top 25%
Return on equity (TTM) 14% · Above median
Return on assets 9% · Top 25%
Net margin (TTM) 15% · Top 25%
Operating margin (TTM) 14% · Top 25%
Revenue growth -2% · Below median
Dividend yield (TTM) 2.8% · Top 25%
Debt / equity 0.01× · Lower than median

Valuation Multiples vs Electrical Equipment & Parts median · lower = cheaper

P/E (TTM) 11.7× · Cheaper than 75% of peers
P/B 2.09× · Cheaper than median
P/S (TTM) 2.29× · Pricier than median
P/FCF 13.5× · Pricier than 75% of peers
EV/EBITDA 9.2× · 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 0
FUTURE 0 · sector 57
PAST 56 · sector 26
HEALTH 99 · sector 97
DIVIDEND 55 · sector 20

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 Electrical Equipment & Parts stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Contemporary Amperex Technology Co 3750 HK$652.50 HK$394.19 -40%
Delta Electronics (Thailand) Public Company DELTA 269.00 THB 40.28 THB -85%
LG Energy Solution, Ltd 373220 365,500 KRW 201,455 KRW -45%
WEG S.A WEGE3 14,900 ARS 4,338 ARS -71%
Sungrow Power Supply Co 300274 ¥117.53 ¥123.83 +5%
HD Hyundai Electric Co 267260 782,000 KRW 371,133 KRW -53%
LS ELECTRIC Co 010120 208,500 KRW 29,594 KRW -86%
Hyosung Heavy Industries Corporation 298040 2,892,000 KRW 1,013,099 KRW -65%
Hitachi Energy India Limited POWERINDIA ₹35,800 ₹6,106 -83%
Polycab India Limited POLYCAB ₹9,289 ₹3,218 -65%

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Frequently asked questions

Is FW Thorpe Plc (TFW) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of £4.33 versus a price of £2.57, about +68% (undervalued).
What is the fair value of TFW?
Our model-based fair value for FW Thorpe Plc is £4.33 (as of Aug 13, 2026), built from audited fundamentals. The current price is £2.57.
What is the quality score of TFW?
FW Thorpe Plc has a Quality Score of 70/100. 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 FW Thorpe Plc (TFW)?
FW Thorpe Plc reported trailing-twelve-month revenue of about £173M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of TFW?
The net profit margin of FW Thorpe Plc is about 14.7%, meaning it keeps roughly 14.7% of revenue as net income. Based on the latest reported figures.
Does FW Thorpe Plc pay a dividend?
FW Thorpe Plc currently shows a dividend yield of about 2.77% relative to its recent price (as of Aug 13, 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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