SomnoMed Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: Insufficient data to calculate SOM's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate SOM's fair value for valuation analysis.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for SOM. This is calculated by dividing SOM's market cap by their current revenue.
What is SOM's PS Ratio?
PS Ratio	0.9x
Sales	AU$91.65m
Market Cap	AU$85.36m

SOM 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	-11.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SOM 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	2.4x
CMP Compumedics	1x	n/a	AU$47.8m
AHC Austco Healthcare	1.6x	n/a	AU$91.0m
UBI Universal Biosensors	5.5x	n/a	AU$38.7m
EYE Nova Eye Medical	1.5x	26.3%	AU$35.5m
SOM SomnoMed	0.9x	9.0%	AU$85.4m

Price-To-Sales vs Peers: SOM is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (2.4x).

Price to Sales Ratio vs Industry

How does SOM's PS Ratio compare vs other companies in the AU Medical Equipment Industry?

9 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	4.1x	10.5%
SOM SomnoMed	0.9x	9.0%	US$55.47m
SDI SDI	1.2x	5.4%	US$85.35m
CMP Compumedics	1x	n/a	US$31.05m

9 Companies		Estimated Growth	Market Cap
Industry Avg.	4.1x	16.2%
SOM SomnoMed	0.9x	n/a	US$55.47m

No more companies

Price-To-Sales vs Industry: SOM is good value based on its Price-To-Sales Ratio (0.9x) compared to the Australian Medical Equipment industry average (4.1x).

Price to Sales Ratio vs Fair Ratio

What is SOM'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.

SOM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.9x
Fair PS Ratio	1.5x

Price-To-Sales vs Fair Ratio: SOM is good value based on its Price-To-Sales Ratio (0.9x) compared to the estimated Fair Price-To-Sales Ratio (1.5x).

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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