Strata Investment Holdings Plc

CHIA:SRT Stock Report

Market Cap: AU$27.1m

Strata Investment Holdings Valuation

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

Below Fair Value: SRT (A$0.16) is trading below our estimate of fair value (A$1.64)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for SRT. This is calculated by dividing SRT's market cap by their current revenue.
What is SRT's PS Ratio?
PS Ratio3.9x
SalesUK£3.56m
Market CapUK£13.88m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SRT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average8.6x
MRC Mineral Commodities
0.6xn/aAU$25.6m
RDM Red Metal
20.7xn/aAU$37.8m
TNC True North Copper
12.9xn/aAU$30.9m
MGL Magontec
0.2x9.4%AU$17.1m
SRT Strata Investment Holdings
3.9xn/aAU$27.1m

Price-To-Sales vs Peers: SRT is good value based on its Price-To-Sales Ratio (3.9x) compared to the peer average (8.9x).

Price to Sales Ratio vs Industry

How does SRT's PS Ratio compare vs other companies in the AU Metals and Mining Industry?

121 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.58.6x2.6%
SRT Strata Investment Holdings
 3.9xn/aUS$17.50m
BHP BHP Group
2.3x-3.2%US$131.27b
FMG Fortescue
2x-5.6%US$36.55b
SRT 3.9xIndustry Avg. 58.6xNo. of Companies120PS020406080100+
121 CompaniesEstimated GrowthMarket Cap
Industry Avg.58.6x10.5%
SRT Strata Investment Holdings
 3.9xn/aUS$17.50m
No more companies

Price-To-Sales vs Industry: SRT is good value based on its Price-To-Sales Ratio (3.9x) compared to the Australian Metals and Mining industry average (61x).

Price to Sales Ratio vs Fair Ratio

What is SRT'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.

SRT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.9x
Fair PS Ration/a

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