Report

Outlook: Pricing the growth

Based on the targeted increases in consultant headcount, we expect profits to grow rapidly at Utilitywise. In view of the high projected growth rates we believe PEG ratios provide the best guide to valuation. Aligning Utilitywise’s PEG with that of the All-Share indicates a valuation of 510p/share. Applying the PEG of the industrial support services sector would indicate a price of 400p/share.
Underlying
Utilitywise

Utilitywise is engaged in gas, electricity and water procurement, and in energy management and compliance services for businesses. Co. negotiates rates with a portfolio of energy and water suppliers on behalf of business customers, provides an account care service and provides a range of products and services designed to assist customers in managing their energy consumption and energy compliance needs. Co. is organized into two divisions, Enterprise and Corporate. The Enterprise Division services Micro market, SME and mid-market customers. The Corporate Division serves larger clients, sometimes referred to as l&C customers in the market.

Provider
Edison Investment Research
Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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