AJ Lucas Group Valuation

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

AJL (A$0.01) is trading below our estimate of [[fair value]] (A$0.71)

Is AJL 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-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: AJL (A$0.01) is trading below our estimate of fair value (A$0.71)

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

Key Valuation Metric

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

Key metric: As AJL is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for AJL. This is calculated by dividing AJL's market cap by their current revenue.
What is AJL's PS Ratio?
PS Ratio	0.07x
Sales	AU$159.11m
Market Cap	AU$11.01m

AJL 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	0.8x
Enterprise Value/EBITDA	4.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does AJL's PS Ratio compare to its peers?

The above table shows the PS ratio for AJL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	0.4x
EVZ EVZ	0.2x	n/a	AU$17.6m
RDG Resource Development Group	0.4x	3.1%	AU$59.0m
DDB Dynamic Group Holdings	0.5x	n/a	AU$37.2m
VBC Verbrec	0.4x	11.6%	AU$41.9m
AJL AJ Lucas Group	0.07x	n/a	AU$11.0m

Price-To-Sales vs Peers: AJL is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (0.4x).

Price to Sales Ratio vs Industry

How does AJL's PS Ratio compare vs other companies in the AU Construction Industry?

2 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	0.6x	6.1%
AJL AJ Lucas Group	0.07x	n/a	US$7.16m

No more companies available in this PS range

2 Companies		Estimated Growth	Market Cap
Industry Avg.	0.6x	12.4%
AJL AJ Lucas Group	0.07x	n/a	US$7.16m

No more companies

Price-To-Sales vs Industry: AJL is good value based on its Price-To-Sales Ratio (0.1x) compared to the Australian Construction industry average (0.6x).

Price to Sales Ratio vs Fair Ratio

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

AJL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.07x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate AJL's Price-To-Sales 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.

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