Sigma Healthcare Limited

CHIA:SIG Stock Report

Market Cap: AU$4.2b

Sigma Healthcare Valuation

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

Below Fair Value: SIG (A$2.7) is trading below our estimate of fair value (A$14.87)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for SIG. This is calculated by dividing SIG's market cap by their current revenue.
What is SIG's PS Ratio?
PS Ratio1.2x
SalesAU$3.48b
Market CapAU$4.21b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SIG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.2x
PGC Paragon Care
0.3x9.9%AU$819.4m
REG Regis Healthcare
1.9x7.9%AU$2.0b
RHC Ramsay Health Care
0.5x4.4%AU$9.0b
ANN Ansell
1.9x6.7%AU$4.7b
SIG Sigma Healthcare
1.2x21.5%AU$4.2b

Price-To-Sales vs Peers: SIG is expensive based on its Price-To-Sales Ratio (1.2x) compared to the peer average (1.1x).

Price to Sales Ratio vs Industry

How does SIG's PS Ratio compare vs other companies in the AU Healthcare Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
FCG Freedom Care Group Holdings
0.1xn/aUS$2.59m
HHI Health House International
0.05xn/aUS$590.30k
TTB Total Brain
0.03xn/aUS$179.68k
No more companies available in this PS range
SIG 1.2xIndustry Avg. 1.4xNo. of Companies3PS00.81.62.43.24+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SIG is good value based on its Price-To-Sales Ratio (1.2x) compared to the Oceanic Healthcare industry average (1.4x).

Price to Sales Ratio vs Fair Ratio

What is SIG'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.

SIG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.2x
Fair PS Ratio1.7x

Price-To-Sales vs Fair Ratio: SIG is good value based on its Price-To-Sales Ratio (1.2x) compared to the estimated Fair Price-To-Sales Ratio (1.7x).

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 SIG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$2.70
AU$1.87
-30.9%
25.3%AU$2.50AU$1.00n/a7
Nov ’25AU$1.96
AU$1.24
-36.4%
20.5%AU$1.60AU$0.78n/a7
Oct ’25AU$1.79
AU$1.24
-30.5%
20.5%AU$1.60AU$0.78n/a7
Sep ’25AU$1.26
AU$1.13
-10.2%
18.4%AU$1.40AU$0.78n/a8
Aug ’25AU$1.28
AU$1.13
-11.6%
18.4%AU$1.40AU$0.78n/a8
Jul ’25AU$1.25
AU$1.11
-11.6%
16.3%AU$1.30AU$0.78n/a8
Jun ’25AU$1.26
AU$1.11
-12.3%
16.3%AU$1.30AU$0.78n/a8
May ’25AU$1.26
AU$1.12
-11.3%
16.9%AU$1.30AU$0.78n/a8
Apr ’25AU$1.29
AU$1.12
-13.4%
16.9%AU$1.30AU$0.78n/a8
Mar ’25AU$1.13
AU$0.89
-21.3%
10.0%AU$1.07AU$0.78n/a8
Feb ’25AU$1.02
AU$0.89
-12.2%
10.0%AU$1.07AU$0.78n/a8
Jan ’25AU$1.01
AU$0.83
-17.9%
6.6%AU$0.90AU$0.73n/a8
Dec ’24AU$0.71
AU$0.82
+15.8%
5.0%AU$0.90AU$0.75n/a8
Nov ’24n/a
AU$0.82
0%
5.4%AU$0.90AU$0.75AU$1.967
Oct ’24n/a
AU$0.82
0%
5.4%AU$0.90AU$0.75AU$1.797
Sep ’24n/a
AU$0.83
0%
4.2%AU$0.90AU$0.80AU$1.267
Aug ’24n/a
AU$0.83
0%
4.2%AU$0.90AU$0.80AU$1.287
Jul ’24n/a
AU$0.80
0%
11.7%AU$0.90AU$0.58AU$1.258
Jun ’24n/a
AU$0.57
0%
15.1%AU$0.65AU$0.38AU$1.268
May ’24n/a
AU$0.58
0%
15.9%AU$0.65AU$0.38AU$1.267
Apr ’24n/a
AU$0.58
0%
12.7%AU$0.65AU$0.43AU$1.298
Mar ’24n/a
AU$0.59
0%
14.3%AU$0.70AU$0.43AU$1.138
Feb ’24n/a
AU$0.59
0%
14.3%AU$0.70AU$0.43AU$1.028
Jan ’24n/a
AU$0.59
0%
14.3%AU$0.70AU$0.43AU$1.018
Dec ’23n/a
AU$0.59
0%
14.3%AU$0.70AU$0.43AU$0.718
Nov ’23n/a
AU$0.59
0%
14.3%AU$0.70AU$0.43n/a8

Analyst Forecast: Target price is lower than the current share price.

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