Eureka Group Holdings Limited

CHIA:EGH Stock Report

Market Cap: AU$250.3m

Eureka Group Holdings Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: EGH (A$0.59) is trading below our estimate of fair value (A$0.79)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for EGH. This is calculated by dividing EGH's market cap by their current earnings.
What is EGH's PE Ratio?
PE Ratio18.9x
EarningsAU$13.21m
Market CapAU$250.27m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for EGH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.9x
SRV Servcorp
11.9x11.7%AU$464.7m
SSL Sietel
32.5xn/aAU$78.1m
DGH Desane Group Holdings
21.4xn/aAU$35.2m
FRI Finbar Group
13.6xn/aAU$225.9m
EGH Eureka Group Holdings
18.9x11.3%AU$250.3m

Price-To-Earnings vs Peers: EGH is good value based on its Price-To-Earnings Ratio (18.9x) compared to the peer average (19.9x).

Price to Earnings Ratio vs Industry

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

95 CompaniesPrice / EarningsEstimated GrowthMarket Cap
EGH 18.9xIndustry Avg. 15.0xNo. of Companies168PE01224364860+
95 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: EGH is expensive based on its Price-To-Earnings Ratio (18.9x) compared to the Global Real Estate industry average (15x).

Price to Earnings Ratio vs Fair Ratio

What is EGH'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.

EGH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.9x
Fair PE Ratio11.9x

Price-To-Earnings vs Fair Ratio: EGH is expensive based on its Price-To-Earnings Ratio (18.9x) compared to the estimated Fair Price-To-Earnings Ratio (11.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst EGH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$0.59
AU$0.70
+19.2%
11.0%AU$0.80AU$0.61n/a3
Nov ’25AU$0.61
AU$0.69
+12.3%
10.9%AU$0.76AU$0.61n/a2
Feb ’24AU$0.45
AU$0.56
+25.8%
8.9%AU$0.61AU$0.51AU$0.462
Jan ’24AU$0.47
AU$0.56
+19.1%
8.9%AU$0.61AU$0.51AU$0.452
Dec ’23AU$0.43
AU$0.56
+28.7%
8.9%AU$0.61AU$0.51AU$0.422
Nov ’23AU$0.47
AU$0.63
+35.5%
3.2%AU$0.65AU$0.61AU$0.452

Analyst Forecast: Target price is less than 20% higher than the current share price.

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