Medical Developments International Limited

CHIA:MVP Stock Report

Market Cap: AU$47.3m

Medical Developments International Valuation

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

Below Fair Value: MVP (A$0.42) is trading below our estimate of fair value (A$2.44)

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


Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for MVP. This is calculated by dividing MVP's market cap by their current revenue.
What is MVP's PS Ratio?
PS Ratio1.4x
SalesAU$33.15m
Market CapAU$47.32m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for MVP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.3x
SPL Starpharma Holdings
4.9xn/aAU$48.0m
LGP Little Green Pharma
1.5x16.3%AU$39.2m
NYR Nyrada
6.5xn/aAU$21.0m
VIT Vitura Health
0.5xn/aAU$57.0m
MVP Medical Developments International
1.4x14.4%AU$47.3m

Price-To-Sales vs Peers: MVP is good value based on its Price-To-Sales Ratio (1.4x) compared to the peer average (3.3x).


Price to Sales Ratio vs Industry

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

17 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.4.9x35.5%
MVP Medical Developments International
1.4x14.4%US$30.75m
MYX Mayne Pharma Group
0.9x11.3%US$236.25m
PBP Probiotec
1.1x6.7%US$160.13m
MVP 1.4xIndustry Avg. 4.9xNo. of Companies16PS01224364860+
17 CompaniesEstimated GrowthMarket Cap
Industry Avg.4.9x47.8%
MVP Medical Developments International
1.4x93.1%US$30.75m
No more companies

Price-To-Sales vs Industry: MVP is good value based on its Price-To-Sales Ratio (1.4x) compared to the Australian Pharmaceuticals industry average (4.9x).


Price to Sales Ratio vs Fair Ratio

What is MVP'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.

MVP PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.4x
Fair PS Ratio2.3x

Price-To-Sales vs Fair Ratio: MVP is good value based on its Price-To-Sales Ratio (1.4x) 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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