Pengana Capital Group Valuation

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

PCG (A$0.87) is trading below our estimate of [[fair value]] (A$1.48)

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

Below Fair Value: PCG (A$0.87) is trading below our estimate of fair value (A$1.48)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for PCG. This is calculated by dividing PCG's market cap by their current revenue.
What is PCG's PS Ratio?
PS Ratio	1.8x
Sales	AU$40.48m
Market Cap	AU$72.20m

PCG 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	1.6x
Enterprise Value/EBITDA	40.6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for PCG 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	13.7x
MAM Microequities Asset Management Group	5.3x	n/a	AU$68.1m
BWF BlackWall	36.2x	n/a	AU$70.5m
SB2 Salter Brothers Emerging Companies	8x	n/a	AU$64.3m
SNC Sandon Capital Investments	5.4x	n/a	AU$111.7m
PCG Pengana Capital Group	1.8x	n/a	AU$72.2m

Price-To-Sales vs Peers: PCG is good value based on its Price-To-Sales Ratio (1.8x) compared to the peer average (13.7x).

Price to Sales Ratio vs Industry

How does PCG's PS Ratio compare vs other companies in the AU Capital Markets Industry?

22 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	5.7x	5.7%
PCG Pengana Capital Group	1.8x	n/a	US$46.94m
PPT Perpetual	1.7x	2.9%	US$1.52b
IFL Insignia Financial	1.1x	-7.0%	US$1.37b

22 Companies		Estimated Growth	Market Cap
Industry Avg.	5.7x	12.3%
PCG Pengana Capital Group	1.8x	95.4%	US$46.94m

No more companies

Price-To-Sales vs Industry: PCG is good value based on its Price-To-Sales Ratio (1.8x) compared to the Australian Capital Markets industry average (5.6x).

Price to Sales Ratio vs Fair Ratio

What is PCG'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.

PCG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.8x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate PCG'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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