The Environmental Group Limited

CHIA:EGL Stock Report

Market Cap: AU$104.6m

Environmental Group Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: EGL (A$0.27) is trading below our estimate of fair value (A$0.38)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for EGL. This is calculated by dividing EGL's market cap by their current earnings.
What is EGL's PE Ratio?
PE Ratio23.8x
EarningsAU$4.39m
Market CapAU$104.64m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for EGL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.5x
KOV Korvest
10.4xn/aAU$114.6m
LBL LaserBond
19.6x31.2%AU$69.2m
VEE VEEM
21.6x10.6%AU$150.7m
XRF XRF Scientific
26.5x11.8%AU$235.2m
EGL Environmental Group
23.8x16.3%AU$104.6m

Price-To-Earnings vs Peers: EGL is expensive based on its Price-To-Earnings Ratio (23.8x) compared to the peer average (19.5x).

Price to Earnings Ratio vs Industry

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

31 CompaniesPrice / EarningsEstimated GrowthMarket Cap
EGL 23.8xIndustry Avg. 21.6xNo. of Companies204PE01632486480+
31 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: EGL is expensive based on its Price-To-Earnings Ratio (23.8x) compared to the Global Machinery industry average (21.6x).

Price to Earnings Ratio vs Fair Ratio

What is EGL'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.

EGL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.8x
Fair PE Ratio16.6x

Price-To-Earnings vs Fair Ratio: EGL is expensive based on its Price-To-Earnings Ratio (23.8x) compared to the estimated Fair Price-To-Earnings Ratio (16.6x).

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

Emeco Holdings

AU$416.6m

Provides surface and underground mining equipment rental, complementary equipment, and mining services in Australia.

EHL

AU$0.81

7D

8.7%

1Y

42.1%

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$1.28

7D

-1.7%

1Y

29.9%

Fletcher Building

NZ$3.4b

Engages in the manufacture and distribution of building products in New Zealand, Australia, and internationally.

FBU

NZ$2.81

7D

1.1%

1Y

-32.9%