Matrix Composites & Engineering Valuation

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

MCE (A$0.23) is trading below our estimate of [[fair value]] (A$0.32)

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: MCE (A$0.23) is trading below our estimate of fair value (A$0.32)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MCE. This is calculated by dividing MCE's market cap by their current earnings.
What is MCE's PE Ratio?
PE Ratio	14.1x
Earnings	AU$3.65m
Market Cap	AU$51.48m

MCE 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	0.8x
Enterprise Value/EBITDA	6.9x
PEG Ratio	0.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MCE 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	13.9x
BRK Brookside Energy	3.1x	49.1%	AU$45.3m
JPR Jupiter Energy	24.8x	n/a	AU$45.9m
CUE Cue Energy Resources	4.9x	n/a	AU$69.2m
ECH Echelon Resources	22.9x	n/a	AU$80.6m
MCE Matrix Composites & Engineering	14.1x	26.6%	AU$51.5m

Price-To-Earnings vs Peers: MCE is expensive based on its Price-To-Earnings Ratio (14.1x) compared to the peer average (13.9x).

Price to Earnings Ratio vs Industry

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

17 Companies	Price / Earnings	Estimated Growth	Market Cap

17 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: MCE is expensive based on its Price-To-Earnings Ratio (14.1x) compared to the Global Energy Services industry average (12x).

Price to Earnings Ratio vs Fair Ratio

What is MCE'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.

MCE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	14.1x
Fair PE Ratio	9.9x

Price-To-Earnings vs Fair Ratio: MCE is expensive based on its Price-To-Earnings Ratio (14.1x) compared to the estimated Fair Price-To-Earnings Ratio (9.9x).

Analyst Price Targets

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

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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