AVITA Medical Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: AVH (A$3.97) is trading below our estimate of fair value (A$19.22)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for AVH. This is calculated by dividing AVH's market cap by their current revenue.
What is AVH's PS Ratio?
PS Ratio	5.7x
Sales	US$60.04m
Market Cap	US$342.30m

AVH 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	5.7x
Enterprise Value/EBITDA	-5.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for AVH 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	31.8x
CUV Clinuvel Pharmaceuticals	7.5x	21.4%	AU$657.3m
IMU Imugene	55.4x	58.2%	AU$275.2m
ARX Aroa Biosurgery	3.6x	20.1%	AU$224.2m
RAC Race Oncology	60.9x	34.8%	AU$243.8m
AVH AVITA Medical	5.7x	26.6%	AU$342.3m

Price-To-Sales vs Peers: AVH is good value based on its Price-To-Sales Ratio (5.7x) compared to the peer average (31.8x).

Price to Sales Ratio vs Industry

How does AVH's PS Ratio compare vs other companies in the AU Biotechs Industry?

8 Companies	Price / Sales	Estimated Growth	Market Cap
ARX Aroa Biosurgery	3.6x	20.1%	US$146.13m
IMC Immuron	3.5x	59.7%	US$11.20m
ATH Alterity Therapeutics	4x	25.0%	US$10.40m
BNO Bionomics	2.4x	-5.3%	US$9.52m

8 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: AVH is good value based on its Price-To-Sales Ratio (5.7x) compared to the Australian Biotechs industry average (10x).

Price to Sales Ratio vs Fair Ratio

What is AVH'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.

AVH PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	5.7x
Fair PS Ratio	7.7x

Price-To-Sales vs Fair Ratio: AVH is good value based on its Price-To-Sales Ratio (5.7x) compared to the estimated Fair Price-To-Sales Ratio (7.7x).

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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