Servcorp Valuation

Is SRV 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-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SRV when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SRV (A$4.97) is trading below our estimate of fair value (A$30.02)

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


Key Valuation Metric

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

Key metric: As SRV is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SRV. This is calculated by dividing SRV's market cap by their current earnings.
What is SRV's PE Ratio?
PE Ratio12.6x
EarningsAU$39.04m
Market CapAU$485.43m

Price to Earnings Ratio vs Peers

How does SRV's PE Ratio compare to its peers?

The above table shows the PE ratio for SRV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.9x
EGH Eureka Group Holdings
18.8x11.3%AU$248.1m
SSL Sietel
32.5xn/aAU$78.1m
DGH Desane Group Holdings
21.4xn/aAU$35.2m
CWP Cedar Woods Properties
11x13.1%AU$453.8m
SRV Servcorp
12.6x11.7%AU$485.4m

Price-To-Earnings vs Peers: SRV is good value based on its Price-To-Earnings Ratio (12.6x) compared to the peer average (20.9x).


Price to Earnings Ratio vs Industry

How does SRV's PE Ratio compare vs other companies in the Global Real Estate Industry?

99 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SRV 12.6xIndustry Avg. 14.9xNo. of Companies172PE01224364860+
99 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SRV is good value based on its Price-To-Earnings Ratio (12.6x) compared to the Global Real Estate industry average (14.9x).


Price to Earnings Ratio vs Fair Ratio

What is SRV's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SRV PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.6x
Fair PE Ratio14.6x

Price-To-Earnings vs Fair Ratio: SRV is good value based on its Price-To-Earnings Ratio (12.6x) compared to the estimated Fair Price-To-Earnings Ratio (14.6x).


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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