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Volex Plc (VLX) Fair Value & Analysis

Industrials · GB · Market cap 934M GBX

VP Volex Plc VLX · LSE
Price£5.33
Fair Value£4.07
Upside-23.6%
Quality48/100
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Strengths

Healthy Growth
Low debt · generates free cash flow
Ranks above peers (9/14)

Risks

!Trades 24% ABOVE our fair value of £4.07
!Thin margins · 5.3% net margin
!Moderate moat 53/100
!Weak on valuation: 2 out of 100
Healthy Growth
Thin margins · 5.3% net margin
Low debt · generates free cash flow
1.25% dividend yield
Ranks above peers (9/14)
Moderate moat 53/100
Evidence: High Range £2.13 – £6.22 Share as image

Fair value as of: Aug 20, 2026

From 26 valuation models · updated yesterday

Fair value updated Aug 20, 2026, revised from £5.54 to £4.07 (−26.5%) since Aug 13, 2026. Share price +2.5% over the past month.

Below-average quality, and screening another 24% overvalued on our models.

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What matters now

  • The model range is unusually wide (£2.13 to £6.22). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (48/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

£6.96 £1.93 Fair Value £4.07 Jun 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 20, 2026.

How to read this chart

60‑month range £1.93 – £6.96 · fair‑value band £2.13 – £6.22 · the £5.33 price screens above the £4.07 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 20, 2026.

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Analysis

Volex Plc (VLX) currently trades at £5.33, while our model-based Fair Value estimate is £4.07, implying the stock looks roughly 23.6% overvalued today. The Quality Score stands at 48/100 (below-average quality), in the Industrials 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: high).

Over the trailing twelve months, Volex Plc generated revenue of £1.2B at a net margin of 5.0%. Revenue grew 12.7% year over year. It earns a return on equity of 15.1%. Net debt stands at £152M. Fundamentals as of Aug 20, 2026

Our scenario range runs from £2.13 (bear case) to £6.22 (bull case); at £5.33, 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 Industrials peers we cover trades at -65% fair-value upside, at -24%, VLX 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 £1.44 £2.28 £3.35 80
Residual Income £2.23 £2.74 £6.20 76
Rev-Margin DCF £3.29 £6.12 £9.43 74
All 26 models by family
DCF Models
FCF DCF £1.44 £2.42 £3.77 38
Owner Earnings £3.55 £5.57 £8.35 31
5Y Revenue Exit £3.29 £6.18 £9.97 39
5Y EBITDA Exit £4.58 £8.65 £13.51 41
5Y P/E Exit £3.20 £6.01 £9.02 38
10Y Revenue Exit £2.36 £4.67 £7.93 36
10Y EBITDA Exit £3.26 £6.25 £10.44 37
10Y P/E Exit £2.45 £4.56 £7.26 35
Earnings-Based
Graham-Dodd £2.39 £8.19 £10.99 54
Lynch FV £1.89 £2.69 £3.50 50
PEG = 1.0 £1.89 £2.69 £3.50 46
EPV £2.99 £3.47 £3.88 59
Dividend Discount
Gordon GGM £0.3500 £0.6400 £0.8700 70
DDM Multi-Stage £0.3500 £0.5700 £0.6800 61
Multiples
P/E Multiple £5.53 £7.38 £9.22 63
P/S Multiple £4.48 £5.97 £7.47 58
P/B Multiple £4.48 £5.97 £7.47 55
EV/EBIT £6.88 £9.36 £11.85 53
EV/EBITDA £7.52 £10.22 £12.92 54
EV/Revenue £4.74 £7.02 £9.30 43
Asset-Based
NCAV (Graham) £1.20 £1.61 £2.40 50
Growth DCF
Growth DCF £1.44 £2.28 £3.35 80
Rev-Margin DCF £3.29 £6.12 £9.43 74
Economic Profit
Residual Income £2.23 £2.74 £6.20 76
ROIC Compounder £3.12 £3.93 £4.89 72
Growth Earnings
Growth-Adj P/E £4.74 £6.77 £8.80 68

Widest divergence: Multiples (£7.02) versus Dividend Discount (£0.5700). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 1.2B GBX
Revenue growth (YoY) +15.9%
Net margin 5.0%
Return on equity 15.1%
Free cash flow 38.6M GBX FY2026
P/E ratio 23.2
More key figures
Operating margin 7.9%
EPS (TTM) £0.2300
Dividend yield 0.9%
EPS growth (YoY) +29.7%
Net debt 152M GBX FY2026

Figures from reported company fundamentals · as of Aug 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 48/100

Of which business quality 49 · Market factors (momentum, volatility) 58

Profitability 54
Margins and returns on capital today
Quality Growth 56
Are margins and returns improving?
Cashflow 33
Earnings quality: real cash, not paper profit
Fin. Strength 58
Balance sheet, leverage, solvency risk
Investment 32
Disciplined investing over empire-building
Low Volatility 47
Calm price path (market factor)
Momentum 56
Price trend over the last 3–12 months (market factor)
52W Momentum 74
Distance to the 52-week high (market factor)
Net Issuance 58
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

Volex plc manufactures and sells power and connectivity in North America, Europe, and Asia. It provides integrated manufacturing services, such as PCB assembly, box build, and complex cable assemblies; electric vehicle charging solutions; consumer cable harness and power products; copper interconnect cables and data transfer cables; and data center power …

Full company description

Volex plc manufactures and sells power and connectivity in North America, Europe, and Asia. It provides integrated manufacturing services, such as PCB assembly, box build, and complex cable assemblies; electric vehicle charging solutions; consumer cable harness and power products; copper interconnect cables and data transfer cables; and data center power cables and power cords. The company also offers plugs, connectors, and receptacles, custom ruggedised wiring harnesses and battery cables, as well as Integrated Manufacturing Services, such as high level assembly, box builds, electromechanical assemblies and systems, printed circuit board assemblies, video display systems, and embedded systems. Its products are used in complex industrial technology, consumer electricals, electric vehicle, medical, and off-highway. The company sells its products to original equipment manufacturers, contract equipment manufacturers, and distributors. Volex plc was founded in 1892 and is headquartered in Basingstoke, the United Kingdom.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Volex Plc reported revenue of £1.2B in FY2026 versus £591M in FY2022, a compound +19.9%/yr. Reported net income was £64.7M in FY2026, compounding +20.8%/yr from FY2022.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
£1.2B
Latest YoY
+12.5%
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.
+18.2%
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.
+21.2%
Avg. growth/yr (40Y) 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.
+6.6%
Revenue +19.9%/yr
FY22 £591M
FY23 £741M
FY24 £913M
FY25 £1.1B
FY26 £1.2B
Net income +20.8%/yr
FY22 £30.4M
FY23 £36.8M
FY24 £39.3M
FY25 £47.9M
FY26 £64.7M

VLX screens 24% overvalued. Compare with Contemporary Amperex Technology Co →

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

Peer Group

Electrical Equipment & Parts · 548 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 48 · Below median
Fair Value upside −24% · Above median
Return on equity (TTM) 16% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 5% · Above median
Operating margin (TTM) 11% · Above median
Revenue growth 16% · Above median
Dividend yield (TTM) 1.1% · Below median
Debt / equity 0.36× · Higher than 75% of peers

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

P/E (TTM) 23.2× · Cheaper than median
P/B 2.89× · Pricier than median
P/S (TTM) 1.03× · Cheaper than median
P/FCF 33.0× · Pricier than 75% of peers
EV/EBITDA 8.8× · 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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE2 · sector 0
FUTURE80 · sector 57
PAST66 · sector 26
HEALTH82 · sector 97
DIVIDEND23 · sector 23

Insider activity: 45/100

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

Similar stocks

10 more Electrical Equipment & Parts stocks, each showing price versus our Fair Value estimate (as of Aug 20, 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 752,000 KRW 371,133 KRW -51%
LS ELECTRIC Co 010120 206,500 KRW 29,594 KRW -86%
Hyosung Heavy Industries Corporation 298040 2,857,000 KRW 1,013,099 KRW -65%
Hitachi Energy India Limited POWERINDIA ₹33,510 ₹6,106 -82%
CG Power and Industrial Solutions Limited CGPOWER ₹893.95 ₹130.16 -85%

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Frequently asked questions

Is Volex Plc (VLX) overvalued or undervalued?
As of Aug 20, 2026, our model estimates a fair value of £4.07 versus a price of £5.33, about −24% (overvalued).
What is the fair value of VLX?
Our model-based fair value for Volex Plc is £4.07 (as of Aug 20, 2026), built from audited fundamentals. The current price: £5.33.
What is the quality score of VLX?
Volex Plc has a Quality Score of 48/100. 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 Volex Plc (VLX)?
Volex Plc reported trailing-twelve-month revenue of about £1.2B (latest available figure, as of Aug 20, 2026).
What is the net profit margin of VLX?
The net profit margin of Volex Plc is about 5.0%, meaning it keeps roughly 5.0% of revenue as net income. Based on the latest reported figures.
Does Volex Plc pay a dividend?
Volex Plc currently shows a dividend yield of about 0.87% relative to its recent price (as of Aug 20, 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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