Risk factor
Very high price volatility
Profitability factor
Greatly overvalued vs peers
About
Northern 3 VCT PLC operates as a venture capital trust, pursuing a dual investment strategy that encompasses both direct investments and allocations to other funds. For its direct ventures, the trust targets businesses across various development stages, including mid-market firms, those in later phases of growth, established companies, and those requiring capital for expansion. Its fund-of-funds approach involves deploying capital into private equity vehicles. The VCT maintains a sector-agnostic stance, primarily focusing its investments within the United Kingdom. Individual direct investments typically range from £2 million to £10 million, directed towards smaller enterprises with enterprise valuations between £10 million and £30 million, whether they are publicly listed or privately held.
Company Valuation
From both historical and forecast perspectives, the stock is considerably overpriced compared to similar stocks. In particular, the stock is overvalued on P/FCF.