Author is long The Gym Group plc and argues it is roughly 30% undervalued on EBITDA with rising membership and next week's pre-trading update as a catalyst, while noting high debt and UK recession risk.
GYM.L — LONG The author argues The Gym Group is undervalued: at a c.£270m market cap, projected EBITDA of £51–55m and a 7x multiple imply a £357–385m valuation, about 30% above the current share price. Membership growth from about 890k at end-2024 to around 950k mid-2025 and expected near 1 million in next week's pre-trading update provide a near-term catalyst. Longer-term tailwinds include UK low-cost gym segment growth, favourable demographics, and falling interest rates. Main stated risks are high debt around £61m and a potential UK recession.
Current market cap is c. 270m, at a projected EBITDA of 51-55m last year, and a realistic EBITDA multiple of 7 - the current market cap would be 357m - 385m. That represents a c.30% uplift on the current share price.
This Reddit post, published January 07, 2026, features u/ComfortableDealer212 discussing GYM.L. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: u/ComfortableDealer212 · Tickers: GYM.L