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$4.8) is trading below our estimate of fair value (A$28.91)

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 Ratio	12.1x
Earnings	AU$39.04m
Market Cap	AU$473.59m

SRV 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	2.3x
Enterprise Value/EBITDA	9.9x
PEG Ratio	1x

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.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	21x
EGH Eureka Group Holdings	18.9x	9.7%	AU$250.3m
SSL Sietel	32.5x	n/a	AU$78.1m
DGH Desane Group Holdings	21.4x	n/a	AU$35.2m
CWP Cedar Woods Properties	11.3x	13.1%	AU$458.8m
SRV Servcorp	12.1x	11.7%	AU$473.6m

Price-To-Earnings vs Peers: SRV is good value based on its Price-To-Earnings Ratio (12.1x) compared to the peer average (21x).

Price to Earnings Ratio vs Industry

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

96 Companies	Price / Earnings	Estimated Growth	Market Cap

96 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: SRV is good value based on its Price-To-Earnings Ratio (12.1x) 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 Ratio	12.1x
Fair PE Ratio	14.6x

Price-To-Earnings vs Fair Ratio: SRV is good value based on its Price-To-Earnings Ratio (12.1x) 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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