Good day to you all! In my analysis I have determined that the Springer Nature share ($SPG (+0,33%)) is probably highly undervalued. Based on the company's guidance and the analyst models, the P/E ratio for 2025 is around 11, which is quite low compared to the peers (RELX, Wolters Kluwer). The business model is very conservative/stable and high-margin, with very high barriers to market entry.
The analysts' price targets (all buy/outperform) average around EUR 28, i.e. >50% above the current share price.
I assume that the valuation is related to the low free float (<15%), as the existing shareholders have not yet sold significant shares after the IPO in 2024... this is likely to deter large institutional buyers. As BC Partners will sell shares, it could well be that the share price will rise significantly after this event...
What is your opinion on this?