Dexus Convenience Retail REIT

CHIA:DXC Stock Report

Market Cap: AU$413.3m

Dexus Convenience Retail REIT Valuation

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

Below Fair Value: DXC (A$2.99) is trading below our estimate of fair value (A$4.18)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for DXC. This is calculated by dividing DXC's market cap by their current revenue.
What is DXC's PS Ratio?
PS Ratio7.2x
SalesAU$57.26m
Market CapAU$413.27m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for DXC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average8.7x
CDP Carindale Property Trust
6.5x-9.2%AU$378.1m
WPR Waypoint REIT
7.3x-6.1%AU$1.7b
RGN Region Group
6.8x5.3%AU$2.5b
BWP BWP Trust
14.2x5.8%AU$2.5b
DXC Dexus Convenience Retail REIT
7.2x-3.1%AU$413.3m

Price-To-Sales vs Peers: DXC is good value based on its Price-To-Sales Ratio (7.2x) compared to the peer average (8.7x).

Price to Sales Ratio vs Industry

How does DXC's PS Ratio compare vs other companies in the Global Retail REITs Industry?

5 CompaniesPrice / SalesEstimated GrowthMarket Cap
DXC 7.2xIndustry Avg. 6.2xNo. of Companies16PS03.26.49.612.816+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: DXC is expensive based on its Price-To-Sales Ratio (7.2x) compared to the Global Retail REITs industry average (6.3x).

Price to Sales Ratio vs Fair Ratio

What is DXC'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.

DXC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio7.2x
Fair PS Ratio6.5x

Price-To-Sales vs Fair Ratio: DXC is expensive based on its Price-To-Sales Ratio (7.2x) compared to the estimated Fair Price-To-Sales Ratio (6.5x).

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 DXC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$2.99
AU$3.26
+9.2%
3.1%AU$3.39AU$3.11n/a4
Nov ’25AU$2.99
AU$3.24
+8.3%
4.3%AU$3.39AU$3.01n/a4
Oct ’25AU$3.01
AU$3.19
+5.9%
4.6%AU$3.39AU$3.01n/a4
Sep ’25AU$2.82
AU$3.20
+13.5%
4.1%AU$3.39AU$3.01n/a5
Aug ’25AU$2.84
AU$3.14
+10.6%
6.5%AU$3.40AU$2.82n/a5
Jul ’25AU$2.65
AU$3.14
+18.5%
6.5%AU$3.40AU$2.82n/a5
Jun ’25AU$2.66
AU$3.14
+18.1%
6.5%AU$3.40AU$2.82n/a5
May ’25AU$2.70
AU$3.14
+16.2%
6.7%AU$3.40AU$2.80n/a5
Apr ’25AU$2.77
AU$3.14
+13.2%
6.7%AU$3.40AU$2.80n/a5
Mar ’25AU$2.73
AU$3.14
+14.9%
6.7%AU$3.40AU$2.80n/a5
Feb ’25AU$2.65
AU$3.12
+17.9%
7.5%AU$3.40AU$2.79n/a5
Jan ’25AU$2.60
AU$3.11
+19.8%
7.9%AU$3.40AU$2.79n/a5
Dec ’24AU$2.50
AU$3.09
+23.7%
7.6%AU$3.40AU$2.79n/a5
Nov ’24AU$2.25
AU$3.21
+42.4%
4.5%AU$3.40AU$3.00AU$2.994
Oct ’24AU$2.35
AU$3.21
+36.4%
4.5%AU$3.40AU$3.00AU$3.014
Sep ’24AU$2.53
AU$3.15
+24.4%
5.5%AU$3.40AU$2.92AU$2.825
Aug ’24AU$2.54
AU$3.23
+27.0%
8.4%AU$3.55AU$2.92AU$2.845
Jul ’24AU$2.55
AU$3.34
+31.0%
7.5%AU$3.55AU$2.92AU$2.655
Jun ’24AU$2.57
AU$3.38
+31.6%
8.2%AU$3.69AU$2.92AU$2.665
May ’24AU$2.65
AU$3.38
+27.7%
8.2%AU$3.69AU$2.92AU$2.705
Apr ’24AU$2.67
AU$3.38
+26.7%
8.2%AU$3.69AU$2.92AU$2.775
Mar ’24AU$2.76
AU$3.38
+22.6%
8.2%AU$3.69AU$2.92AU$2.735
Feb ’24AU$2.90
AU$3.59
+23.7%
5.9%AU$3.76AU$3.24AU$2.654
Jan ’24AU$2.87
AU$3.62
+26.1%
4.4%AU$3.76AU$3.37AU$2.604
Dec ’23AU$2.82
AU$3.67
+30.2%
4.8%AU$3.83AU$3.37AU$2.504
Nov ’23AU$2.89
AU$3.67
+27.0%
4.8%AU$3.83AU$3.37AU$2.254

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

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