SGH Limited

CHIA:SGH Stock Report

Market Cap: AU$19.9b

SGH Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: SGH (A$48.73) is trading above our estimate of fair value (A$44.15)

Significantly Below Fair Value: SGH is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SGH. This is calculated by dividing SGH's market cap by their current earnings.
What is SGH's PE Ratio?
PE Ratio42.8x
EarningsAU$464.40m
Market CapAU$19.88b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SGH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.7x
REH Reece
38.6x8.8%AU$16.2b
RDX Redox
23.1x9.1%AU$2.1b
EHL Emeco Holdings
8.1x11.2%AU$426.9m
IPG IPD Group
17.1x14.0%AU$382.6m
SGH SGH
42.8x17.3%AU$19.9b

Price-To-Earnings vs Peers: SGH is expensive based on its Price-To-Earnings Ratio (42.8x) compared to the peer average (21.7x).

Price to Earnings Ratio vs Industry

How does SGH's PE Ratio compare vs other companies in the Global Trade Distributors Industry?

23 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SGH 42.8xIndustry Avg. 14.8xNo. of Companies85PE01224364860+
23 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SGH is expensive based on its Price-To-Earnings Ratio (42.8x) compared to the Global Trade Distributors industry average (14.8x).

Price to Earnings Ratio vs Fair Ratio

What is SGH'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.

SGH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio42.8x
Fair PE Ratio32.3x

Price-To-Earnings vs Fair Ratio: SGH is expensive based on its Price-To-Earnings Ratio (42.8x) compared to the estimated Fair Price-To-Earnings Ratio (32.3x).

Analyst Price Targets

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

The above table shows the analyst SGH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$48.73
AU$43.38
-11.0%
10.7%AU$50.75AU$34.50n/a9
Nov ’25AU$41.40
AU$43.82
+5.8%
10.5%AU$50.75AU$34.50n/a10
Oct ’25AU$43.91
AU$42.97
-2.1%
8.7%AU$47.80AU$34.50n/a10
Sep ’25AU$41.20
AU$41.61
+1.0%
9.5%AU$46.00AU$33.97n/a11
Aug ’25AU$39.29
AU$39.27
-0.05%
10.0%AU$45.00AU$32.00n/a9
Jul ’25AU$37.15
AU$38.88
+4.7%
10.8%AU$45.00AU$32.00n/a7
Jun ’25AU$38.93
AU$38.78
-0.4%
10.4%AU$44.30AU$32.00n/a7
May ’25AU$37.92
AU$38.59
+1.8%
10.7%AU$44.30AU$30.50n/a8
Apr ’25AU$40.81
AU$38.59
-5.4%
10.7%AU$44.30AU$30.50n/a8
Mar ’25AU$39.23
AU$38.69
-1.4%
10.7%AU$44.30AU$30.50n/a8
Feb ’25AU$35.34
AU$32.81
-7.2%
9.7%AU$38.00AU$27.50n/a10
Jan ’25AU$36.94
AU$31.92
-13.6%
8.1%AU$36.35AU$27.50n/a10
Dec ’24AU$32.49
AU$31.17
-4.1%
8.0%AU$34.50AU$26.91n/a11
Nov ’24AU$27.65
AU$30.22
+9.3%
6.2%AU$33.00AU$26.91AU$41.4011
Oct ’24AU$31.11
AU$30.22
-2.9%
6.2%AU$33.00AU$26.91AU$43.9111
Sep ’24AU$28.19
AU$29.94
+6.2%
5.8%AU$32.65AU$26.91AU$41.2010
Aug ’24AU$26.18
AU$27.11
+3.6%
6.6%AU$31.00AU$24.85AU$39.2910
Jul ’24AU$24.70
AU$26.69
+8.1%
6.0%AU$31.00AU$24.85AU$37.1511
Jun ’24AU$23.42
AU$26.45
+12.9%
7.0%AU$31.00AU$23.70AU$38.9311
May ’24AU$23.94
AU$26.40
+10.3%
7.3%AU$31.00AU$23.70AU$37.9210
Apr ’24AU$23.02
AU$25.77
+11.9%
8.1%AU$31.00AU$23.41AU$40.8110
Mar ’24AU$24.62
AU$25.77
+4.7%
8.1%AU$31.00AU$23.41AU$39.2310
Feb ’24AU$22.60
AU$23.66
+4.7%
4.3%AU$25.40AU$22.25AU$35.348
Jan ’24AU$21.13
AU$22.99
+8.8%
7.6%AU$25.40AU$19.41AU$36.948
Dec ’23AU$20.90
AU$22.99
+10.0%
7.6%AU$25.40AU$19.41AU$32.498
Nov ’23AU$18.88
AU$22.89
+21.2%
7.2%AU$25.40AU$19.41AU$27.658

Analyst Forecast: Target price is lower than the current share price.

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