ECP Emerging Growth Valuation

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

Below Fair Value: ECP (A$1.45) is trading below our estimate of fair value (A$3.39)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ECP. This is calculated by dividing ECP's market cap by their current earnings.
What is ECP's PE Ratio?
PE Ratio	3.8x
Earnings	AU$6.78m
Market Cap	AU$25.86m

ECP 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	43.2x
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ECP 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	34.6x
PFG Prime Financial Group	19.9x	n/a	AU$55.5m
DVR Diverger	90.3x	n/a	AU$49.5m
CAF Centrepoint Alliance	7.7x	n/a	AU$61.7m
ASW Advanced Share Registry	20.6x	n/a	AU$32.9m
ECP ECP Emerging Growth	3.8x	n/a	AU$25.9m

Price-To-Earnings vs Peers: ECP is good value based on its Price-To-Earnings Ratio (3.8x) compared to the peer average (34.6x).

Price to Earnings Ratio vs Industry

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

9 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	20.0x	12.4%
ECP ECP Emerging Growth	3.8x	n/a	US$16.81m
NGE NGE Capital	3.5x	n/a	US$26.13m
BPH BPH Energy	3.5x	n/a	US$9.49m

9 Companies		Estimated Growth	Market Cap
Industry Avg.	20.0x	12.4%
ECP ECP Emerging Growth	3.8x	n/a	US$16.81m

No more companies

Price-To-Earnings vs Industry: ECP is good value based on its Price-To-Earnings Ratio (3.8x) compared to the Australian Capital Markets industry average (20x).

Price to Earnings Ratio vs Fair Ratio

What is ECP'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.

ECP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	3.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ECP's Price-To-Earnings 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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