Zicom Group Valuation

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

ZGL (A$0.06) is trading below our estimate of [[fair value]] (A$1.59)

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

Valuation Score

4/6

Valuation Score 4/6

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 ZGL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ZGL (A$0.06) is trading below our estimate of fair value (A$1.59)

Significantly Below Fair Value: ZGL is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ZGL. This is calculated by dividing ZGL's market cap by their current earnings.
What is ZGL's PE Ratio?
PE Ratio	1.8x
Earnings	S$6.62m
Market Cap	S$11.99m

ZGL 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	0.3x
Enterprise Value/EBITDA	8.1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ZGL 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	18.5x
LBL LaserBond	19.6x	31.2%	AU$68.6m
KOV Korvest	10.3x	n/a	AU$114.8m
EGL Environmental Group	23x	16.3%	AU$100.8m
VEE VEEM	20.9x	10.6%	AU$166.3m
ZGL Zicom Group	1.8x	n/a	AU$13.7m

Price-To-Earnings vs Peers: ZGL is good value based on its Price-To-Earnings Ratio (1.8x) compared to the peer average (19.2x).

Price to Earnings Ratio vs Industry

How does ZGL's PE Ratio compare vs other companies in the Global Machinery Industry?

31 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	22.0x	37.7%
ZGL Zicom Group	1.8x	n/a	US$8.93m

31 Companies		Estimated Growth	Market Cap
Industry Avg.	22.0x	37.7%
ZGL Zicom Group	1.8x	n/a	US$8.93m

No more companies

Price-To-Earnings vs Industry: ZGL is good value based on its Price-To-Earnings Ratio (1.8x) compared to the Global Machinery industry average (21.8x).

Price to Earnings Ratio vs Fair Ratio

What is ZGL'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.

ZGL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	1.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ZGL'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.

Discover undervalued companies

GWA Group

AU$633.8m

Researches, designs, manufactures, imports, and markets building fixtures and fittings to residential and commercial premises in Australia, New Zealand, and internationally.

GWA

AU$2.39

1.1%

22.3%

Civmec

AU$474.6m

An investment holding company, provides construction and engineering services to the energy, resources, infrastructure, marine, and defense sectors in Australia.

CVL

AU$1.29

-3.7%

39.7%

Civmec

AU$474.6m

An investment holding company, provides construction and engineering services to the energy, resources, infrastructure, marine, and defense sectors in Australia.

CVL

AU$1.26

-4.5%

27.9%