SG Fleet Group Valuation

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

SGF (A$2.65) is trading below our estimate of [[fair value]] (A$11.1)

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

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: SGF (A$2.65) is trading below our estimate of fair value (A$11.1)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SGF. This is calculated by dividing SGF's market cap by their current earnings.
What is SGF's PE Ratio?
PE Ratio	10.1x
Earnings	AU$89.66m
Market Cap	AU$904.51m

SGF 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	2.4x
Enterprise Value/EBITDA	6.3x
PEG Ratio	1.4x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SGF 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	32.5x
MAD Mader Group	26.7x	15.5%	AU$1.3b
SUG Sugar Terminals	12.3x	n/a	AU$397.8m
DOW Downer EDI	68.2x	22.0%	AU$3.8b
MIL Millennium Services Group	22.8x	51.8%	AU$54.0m
SGF SG Fleet Group	10.1x	7.3%	AU$904.5m

Price-To-Earnings vs Peers: SGF is good value based on its Price-To-Earnings Ratio (10.1x) compared to the peer average (32.5x).

Price to Earnings Ratio vs Industry

How does SGF's PE Ratio compare vs other companies in the Global Commercial Services Industry?

18 Companies	Price / Earnings	Estimated Growth	Market Cap

18 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: SGF is good value based on its Price-To-Earnings Ratio (10.1x) compared to the Global Commercial Services industry average (17.4x).

Price to Earnings Ratio vs Fair Ratio

What is SGF'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.

SGF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.1x
Fair PE Ratio	15.5x

Price-To-Earnings vs Fair Ratio: SGF is good value based on its Price-To-Earnings Ratio (10.1x) compared to the estimated Fair Price-To-Earnings Ratio (15.5x).

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 SGF forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	AU$2.65	AU$3.41 +28.6%	5.1%	AU$3.60	AU$3.18	n/a	4
Nov ’25	AU$2.68	AU$3.41 +27.1%	5.1%	AU$3.60	AU$3.18	n/a	4
Oct ’25	AU$2.50	AU$3.41 +36.3%	5.1%	AU$3.60	AU$3.18	n/a	4
Sep ’25	AU$2.99	AU$3.41 +14.0%	5.1%	AU$3.60	AU$3.18	n/a	4
Aug ’25	AU$3.16	AU$3.45 +9.3%	5.2%	AU$3.65	AU$3.21	n/a	4
Jul ’25	AU$3.18	AU$3.25 +2.1%	6.1%	AU$3.58	AU$3.10	n/a	4
Jun ’25	AU$2.95	AU$3.25 +10.1%	6.1%	AU$3.58	AU$3.10	n/a	4
May ’25	AU$3.05	AU$3.25 +6.5%	6.1%	AU$3.58	AU$3.10	n/a	4
Apr ’25	AU$2.95	AU$3.25 +10.1%	6.1%	AU$3.58	AU$3.10	n/a	4
Mar ’25	AU$2.77	AU$3.25 +17.2%	6.1%	AU$3.58	AU$3.10	n/a	4
Feb ’25	AU$2.37	AU$3.03 +27.6%	8.6%	AU$3.43	AU$2.70	n/a	4
Jan ’25	AU$2.35	AU$3.03 +28.7%	8.6%	AU$3.43	AU$2.70	n/a	4
Dec ’24	AU$2.25	AU$3.18 +41.2%	12.0%	AU$3.78	AU$2.70	n/a	5
Nov ’24	AU$2.58	AU$3.18 +23.1%	12.0%	AU$3.78	AU$2.70	AU$2.68	5
Oct ’24	AU$2.46	AU$3.18 +29.1%	12.0%	AU$3.78	AU$2.70	AU$2.50	5
Sep ’24	AU$2.58	AU$3.18 +23.1%	12.0%	AU$3.78	AU$2.70	AU$2.99	5
Aug ’24	AU$2.65	AU$3.06 +15.5%	13.9%	AU$3.78	AU$2.50	AU$3.16	5
Jul ’24	AU$2.30	AU$2.99 +29.8%	16.1%	AU$3.78	AU$2.50	AU$3.18	5
Jun ’24	AU$2.02	AU$2.99 +47.8%	16.1%	AU$3.78	AU$2.50	AU$2.95	5
May ’24	AU$2.11	AU$2.79 +32.1%	10.8%	AU$3.23	AU$2.50	AU$3.05	4
Apr ’24	AU$2.07	AU$2.79 +34.7%	10.8%	AU$3.23	AU$2.50	AU$2.95	4
Mar ’24	AU$2.17	AU$2.87 +32.1%	10.9%	AU$3.23	AU$2.50	AU$2.77	5
Feb ’24	AU$2.07	AU$3.08 +48.7%	7.9%	AU$3.51	AU$2.90	AU$2.37	5
Jan ’24	AU$1.83	AU$3.08 +68.2%	7.9%	AU$3.51	AU$2.90	AU$2.35	5
Dec ’23	AU$1.82	AU$3.08 +69.1%	7.9%	AU$3.51	AU$2.90	AU$2.25	5
Nov ’23	AU$1.95	AU$3.08 +57.8%	7.9%	AU$3.51	AU$2.90	AU$2.58	5

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.