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ConvaTec Group PLC (CTEC) Fair Value & Analysis

Healthcare · GB · Market cap 4.2B GBX · ISIN GB00BD3VFW73

What is ConvaTec Group PLC really worth?

CG ConvaTec Group PLC CTEC · LSE
Price£2.28
Fair Value£1.37
Upside−40.0%
Quality67/100

A solid business, but trading 67% above our fair value of £1.37.

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Strengths

Healthy Growth (revenue 5y +5.6 %/yr)
Moderate debt · generates free cash flow
Ranks above peers (9/15)

Risks

!Thin margins · 7.2% net margin
!Moderate moat 53/100

For context

·2.43% dividend yield
Evidence: High Range £0.8000 – £1.85

Fair value as of: Aug 20, 2026

From 25 valuation models · updated 16 days ago

Fair value updated Aug 20, 2026, revised from £1.87 to £1.37 (−26.7%) since Aug 13, 2026. Share price +2.0% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (£1.85). The favourable scenario is already priced in.
  • Solid but not exceptional quality (67/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (£0.8000 to £1.85) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

£2.89 £1.51 Fair Value £1.37 Jun 2021 Sep 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 £1.51 – £2.89 · fair‑value band £0.8000 – £1.85 · the £2.28 price screens above the £1.37 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

ConvaTec Group PLC (CTEC) currently trades at £2.28, while our model-based Fair Value estimate is £1.37, implying the stock looks roughly 66.6% overvalued today. The Quality Score stands at 67/100 (solid quality), in the Healthcare sector. Bull case: the Multiples group reads highest at a median of £2.01 per share, and 4 of the 25 models we run sit above the £2.28 price. Bear case: the Asset-Based group reads lowest at £0.5200, and 21 of the 25 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, ConvaTec Group PLC generated revenue of £2.4B at a net margin of 7.2%. Revenue grew 7.1% year over year. It earns a return on equity of 10.9%. Net debt stands at £1.5B. Fundamentals as of Aug 20, 2026

Our scenario range runs from £0.8000 (bear case) to £1.85 (bull case); at £2.28, the current price sits above 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 Healthcare peers we cover trades at −46% fair-value upside, at −40%, CTEC screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly £0.0098 per share, which is 0.7 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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
FCF DCF £1.11 £1.88 £2.94 79
Growth DCF £1.16 £1.86 £2.78 78
Residual Income £0.7100 £0.8100 £1.21 75
All 25 models by family
DCF Models
FCF DCF £1.11 £1.88 £2.94 79
Owner Earnings £0.7300 £1.34 £2.17 74
5Y Revenue Exit £1.13 £2.09 £3.27 71
5Y EBITDA Exit £1.89 £3.45 £5.20 74
5Y P/E Exit £0.8200 £1.53 £2.24 69
10Y Revenue Exit £1.05 £1.90 £2.95 65
10Y EBITDA Exit £1.57 £2.80 £4.33 67
10Y P/E Exit £0.9200 £1.53 £2.21 63
Earnings-Based
Graham-Dodd £0.6200 £1.52 £1.97 65
PEG = 1.0 £0.2700 £0.3900 £0.5100 57
EPV £0.9900 £1.26 £1.49 74
Dividend Discount
Gordon GGM £0.6400 £1.13 £1.73 67
DDM Multi-Stage £0.6400 £0.9500 £1.27 67
Multiples
P/E Multiple £1.51 £2.01 £2.51 63
P/S Multiple £1.17 £1.55 £1.94 58
P/B Multiple £1.17 £1.55 £1.94 55
EV/EBIT £2.03 £2.94 £3.84 65
EV/EBITDA £2.78 £3.94 £5.09 67
EV/Revenue £1.26 £2.09 £2.92 52
Asset-Based
NCAV (Graham) £0.3900 £0.5200 £0.7800 54
Growth DCF
Growth DCF £1.16 £1.86 £2.78 78
Rev-Margin DCF £1.13 £2.10 £3.16 71
Economic Profit
Residual Income £0.7100 £0.8100 £1.21 75
ROIC Compounder £1.03 £1.40 £1.82 72
Growth Earnings
Growth-Adj P/E £1.15 £1.64 £2.14 67

Widest divergence: Multiples (£2.01) versus Asset-Based (£0.5200). Highest evidence: FCF DCF (79).

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Key figures & financial health

P/E ratio 38.0
P/S ratio 2.73 P/E × margin
EPS (TTM) £0.0600 price ÷ EPS = P/E 38.0
Dividend yield 2.4% payout 92.4%
Net margin 7.2% FY2025
Return on equity 10.9% TTM
More key figures
Profitability
Return on assets (EBIT) 7.7% avg 5y
Operating margin 18.1% TTM
Growth
Revenue (TTM) £2.4B TTM
Revenue growth (YoY) +7.1% 3y avg +6.3%
EPS growth (YoY) −36.5%
Balance sheet & cash flow
Free cash flow 342M GBX FY2025
Net debt 1.5B GBX FY2025 · ≈ 4.5 yrs of FCF

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

Quality Score breakdown

Overall quality 67/100

Of which business quality 64 · Market factors (momentum, volatility) 52

Profitability 47
Margins and returns on capital today
Quality Growth 51
Are margins and returns improving?
Cashflow 73
Earnings quality: real cash, not paper profit
Fin. Strength 48
Balance sheet, leverage, solvency risk
Investment 91
Disciplined investing over empire-building
Low Volatility 75
Calm price path (market factor)
Momentum 41
Price trend over the last 3–12 months (market factor)
52W Momentum 43
Distance to the 52-week high (market factor)
Net Issuance 88
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Convatec Group PLC engages in the development, manufacturing, and sale of medical products, services and technologies for the management of chronic conditions in Europe, North America, and internationally.

Full company description

Convatec Group PLC engages in the development, manufacturing, and sale of medical products, services and technologies for the management of chronic conditions in Europe, North America, and internationally. The company offers advanced wound care products for the management of acute and chronic wounds resulting from various conditions, such as diabetes, and acute conditions resulting from traumatic injury and burns. It also provides ostomy care solutions, including devices, accessories, and services for people with a stoma resulting from colorectal cancer, bladder cancer, inflammatory bowel disease, and trauma. In addition, the company offers continence care products and services for people with urinary continence issues related to spinal cord injuries, neurological disease, prostate enlargement or other causes. Further, it provides infusion care solutions comprising disposable infusion sets for diabetes insulin pumps, or for use in continuous infusion treatments for conditions such as Parkinson's disease. The company sells its products to pharmacies, hospitals, and other acute and post-acute healthcare service providers directly or through distributors and wholesalers. It serves a range of customers, including healthcare providers, patients, and manufacturers. Convatec Group PLC was founded in 1978 and is headquartered in London, the United Kingdom.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

ConvaTec Group PLC reported revenue of $2.5B in FY2025 versus $2.0B in FY2021, a compound +5.1%/yr. Reported net income was $179M in FY2025, compounding +11.0%/yr from FY2021.

Growth Quality 70/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
£2.5B
Latest YoY
+8.8%
Avg. revenue 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.
+6.3%
Avg. revenue 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.
+5.6%
Avg. revenue growth/yr (12Y) 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.
+3.2%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+11.8% (9.4 + 2.4)
Revenue +5.1%/yr
FY21 $2.0B
FY22 $2.1B
FY23 $2.1B
FY24 $2.3B
FY25 $2.5B
Net income +11.0%/yr
FY21 $118M
FY22 $62.9M
FY23 $130M
FY24 $191M
FY25 $179M

CTEC screens 67% overvalued. Compare with Intuitive Surgical, Inc →

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Cite: Fair Value Calculator (2026). "ConvaTec Group PLC Fair Value". https://www.fairvalue-calculator.com/stock/CTEC

Peer Group

Medical Instruments & Supplies · 194 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 67 · Above median
Fair Value upside −40% · Below median
Return on equity (TTM) 11% · Above median
Return on assets 7% · Top 25%
Net margin (TTM) 7% · Above median
Operating margin (TTM) 18% · Above median
Revenue growth 7% · Above median
Dividend yield (TTM) 2.4% · Above median
Debt / equity 0.92× · Higher than 75% of peers

Valuation Multiples vs Medical Instruments & Supplies median · lower = cheaper

P/E (TTM) 38.0× · Pricier than median
P/B 3.77× · Pricier than 75% of peers
P/S (TTM) 2.35× · Pricier than median
P/FCF 16.7× · Pricier than median
EV/EBITDA 12.0× · Cheaper than median
PEG 0.61× · Cheaper than 75% of peers

Strength profile in five axes (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
VALUE0 · sector 0
FUTURE36 · sector 29
PAST44 · sector 26
HEALTH54 · sector 96
DIVIDEND49 · sector 30

VALUE 0: the price sits above our fair-value range.

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 Medical Instruments & Supplies stocks, each showing price versus our Fair Value estimate (as of Aug 20, 2026).

Stock Price Fair Value vs Fair Value
Intuitive Surgical, Inc ISRG $367.07 $150.04 −59%
EssilorLuxottica Société anonyme EL €160.35 €94.93 −41%
Medline Inc MDLN $36.59 $30.15 −18%
Becton, Dickinson and Company BDX $187.12 $100.46 −46%
Alcon Inc ALC $72.23 $39.78 −45%
ResMed Inc RMD A$33.19 A$26.23 −21%
West Pharmaceutical Services, Inc WST $337.47 $141.58 −58%
Sartorius Stedim Biotech S.A DIM €197.70 €48.88 −75%
Straumann Holding STMN CHF 97.38 CHF 47.31 −51%
Sartorius Aktiengesellschaft SRT3 €253.50 €63.30 −75%

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Frequently asked questions

Is ConvaTec Group PLC (CTEC) overvalued or undervalued?
As of Aug 20, 2026, our model estimates a fair value of £1.37 versus a price of £2.28, about −40% upside (overvalued).
What is the fair value of CTEC?
Our model-based fair value for ConvaTec Group PLC is £1.37 (as of Aug 20, 2026), built from audited fundamentals. The current price: £2.28.
What is the quality score of CTEC?
ConvaTec Group PLC has a Quality Score of 67/100. 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 ConvaTec Group PLC (CTEC)?
ConvaTec Group PLC reported trailing-twelve-month revenue of about £2.4B (latest available figure, as of Aug 20, 2026).
What is the net profit margin of CTEC?
The net profit margin of ConvaTec Group PLC is about 7.2%, meaning it keeps roughly 7.2% of revenue as net income. Based on the latest reported figures.
Does ConvaTec Group PLC pay a dividend?
ConvaTec Group PLC currently shows a dividend yield of about 2.43% relative to its recent price (as of Aug 20, 2026).
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