National Cement Company (Public Shareholding) Valuation

Q: What is the Fair Price of NCC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

NCC (AED2.93) is trading below our estimate of [[fair value]] (AED3.3)

Is NCC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of NCC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NCC (AED2.93) is trading below our estimate of fair value (AED3.3)

Significantly Below Fair Value: NCC is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NCC?

Key metric: As NCC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for NCC. This is calculated by dividing NCC's market cap by their current earnings.
What is NCC's PE Ratio?
PE Ratio	7.1x
Earnings	د.إ147.26m
Market Cap	د.إ1.05b

NCC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	5x
Enterprise Value/EBITDA	175x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does NCC's PE Ratio compare to its peers?

The above table shows the PE ratio for NCC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	18.6x
RAKWCT Ras Al Khaimah for White Cement & Construction Materials P.S.C	15x	n/a	د.إ580.2m
FBI Fujairah Building Industries P.J.S.C	21.2x	n/a	د.إ482.8m
SCIDC Sharjah Cement and Industrial Development (PJSC)	9.9x	n/a	د.إ365.6m
EMSTEEL Emsteel Building Materials PJSC	28.2x	n/a	د.إ8.6b
NCC National Cement Company (Public Shareholding)	7.1x	n/a	د.إ1.1b

Price-To-Earnings vs Peers: NCC is good value based on its Price-To-Earnings Ratio (7.1x) compared to the peer average (18.6x).

Price to Earnings Ratio vs Industry

How does NCC's PE Ratio compare vs other companies in the Asian Basic Materials Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: NCC is good value based on its Price-To-Earnings Ratio (7.1x) compared to the Asian Basic Materials industry average (17.2x).

Price to Earnings Ratio vs Fair Ratio

What is NCC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NCC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate NCC's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.