Little Green Pharma Valuation

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

Below Fair Value: LGP (A$0.14) is trading below our estimate of fair value (A$0.17)

Significantly Below Fair Value: LGP is trading below fair value, but not by a significant amount.


Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for LGP. This is calculated by dividing LGP's market cap by their current revenue.
What is LGP's PS Ratio?
PS Ratio1.6x
SalesAU$25.63m
Market CapAU$39.23m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for LGP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average8.3x
SPL Starpharma Holdings
4.9xn/aAU$48.0m
VIT Vitura Health
0.5xn/aAU$57.0m
PER Percheron Therapeutics
26.4x45.3%AU$78.4m
MVP Medical Developments International
1.4x14.4%AU$47.3m
LGP Little Green Pharma
1.6x16.3%AU$39.2m

Price-To-Sales vs Peers: LGP is good value based on its Price-To-Sales Ratio (1.6x) compared to the peer average (8.3x).


Price to Sales Ratio vs Industry

How does LGP's PS Ratio compare vs other companies in the AU Pharmaceuticals Industry?

16 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.4.9x35.5%
LGP Little Green Pharma
1.6x16.3%US$25.49m
MYX Mayne Pharma Group
1x11.3%US$236.25m
PBP Probiotec
1.1x6.7%US$160.13m
LGP 1.6xIndustry Avg. 4.9xNo. of Companies16PS01224364860+
16 CompaniesEstimated GrowthMarket Cap
Industry Avg.4.9x47.8%
LGP Little Green Pharma
1.6x110.1%US$25.49m
No more companies

Price-To-Sales vs Industry: LGP is good value based on its Price-To-Sales Ratio (1.6x) compared to the Australian Pharmaceuticals industry average (4.9x).


Price to Sales Ratio vs Fair Ratio

What is LGP'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.

LGP PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.6x
Fair PS Ratio2.3x

Price-To-Sales vs Fair Ratio: LGP is good value based on its Price-To-Sales Ratio (1.6x) compared to the estimated Fair Price-To-Sales Ratio (2.3x).


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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