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.
| P/E | P/BV | Div. Yield | |
| Informa | 14.3 | 2.7 | 2.75 |
| 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 |
| Pearson (PSO) | 14.0 | 1.4 | 2.6 |
| Experian (OTCQX:EXPGY) | 22.2 | 7.5 | 2.0 |
| Average | 19.0 | 4.5 | 2.44 |
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%.