Embark Early Education Valuation

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

Below Fair Value: EVO (A$0.81) is trading below our estimate of fair value (A$3.28)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for EVO. This is calculated by dividing EVO's market cap by their current earnings.
What is EVO's PE Ratio?
PE Ratio	17.7x
Earnings	AU$8.38m
Market Cap	AU$148.62m

EVO 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	3.3x
Enterprise Value/EBITDA	14.3x
PEG Ratio	0.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for EVO 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	22.2x
KME Kip McGrath Education Centres	19x	n/a	AU$25.0m
GEM G8 Education	17.2x	14.8%	AU$1.1b
IEL IDP Education	28.4x	14.1%	AU$3.8b
SHJ Shine Justice	24.1x	28.1%	AU$149.5m
EVO Embark Early Education	17.7x	30.9%	AU$148.6m

Price-To-Earnings vs Peers: EVO is good value based on its Price-To-Earnings Ratio (17.7x) compared to the peer average (22.2x).

Price to Earnings Ratio vs Industry

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

27 Companies	Price / Earnings	Estimated Growth	Market Cap

27 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: EVO is expensive based on its Price-To-Earnings Ratio (17.7x) compared to the Global Consumer Services industry average (17.5x).

Price to Earnings Ratio vs Fair Ratio

What is EVO'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.

EVO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	17.7x
Fair PE Ratio	23.2x

Price-To-Earnings vs Fair Ratio: EVO is good value based on its Price-To-Earnings Ratio (17.7x) compared to the estimated Fair Price-To-Earnings Ratio (23.2x).

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.