Risk factor
Considerable default risk
Profitability factor
Very low or no dividends
About
City of London Group plc primarily focuses on the provision of finance to the SME sector in the United Kingdom. It offers asset backed finance products, commercial loans, debt finance products, and leasing services to SMEs; loans to professional practice firms; working capital loans; property bridging finances; market broking advise services for general insurance, commercial finance broking, regulated mortgages, protection, pensions, and investments; and banking license application services. The company arranges, administers, and provides home reversion plans for the residential property market. City of London Group plc was incorporated in 1981 and is based in London, the United Kingdom.
Company Valuation
Based on key historical and expected multiples, the stock is fairly valued relative to its peers. In particular, the stock is overpriced on P/E, of fair value on EV/EBITD
