According to Seeking Alpha Informa is currently undervalued compared to its closest peer group by about 30% and may re-rate in the next few months. The company has made a significant business overhaul in the past few years and is now very well positioned to grow sustainably going forward. Despite this profile, its valuation seems to be too cheap and a potential high dividend increase may be the catalyst for a re-rating of its shares.
On a relative basis, it trades at a significant discount to its closest peers, as shown in the next table.
|Wolters Kluwer (OTCPK:WTKWY)||17.8||5.0||2.0|
|Axel Springer (OTC:AXSPY)||21.1||3.2||3.2|
|Relx NV (RELX)||19.7||5.3||2.4|
This means that Informa is currently undervalued, and this doesn’t seem to be warranted due to its good growth prospects justifying a valuation closer to its peer group. If Informa closes its valuation gap to its peer group, it may have upside potential of about 33%.