We’ve recently updated our valuation analysis.

Best & Less Group Holdings Valuation

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

[object Object] Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

BST 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/Revenue0.7x
Enterprise Value/EBITDA7.9x
PEG Ratio0.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BST vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average18x
UNI Universal Store Holdings
19.2x16.9%AU$395.9m
CCX City Chic Collective
7.7x8.7%AU$171.1m
AX1 Accent Group
31x19.0%AU$975.1m
PMV Premier Investments
14.2x-0.9%AU$4.0b
BST Best & Less Group Holdings
7.9x9.6%AU$284.6m

Price-To-Earnings vs Peers: BST is good value based on its Price-To-Earnings Ratio (7.9x) compared to the peer average (18x).


Price to Earnings Ratio vs Industry

How does BST's PE Ratio compare vs other companies in the AU Specialty Retail Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a0.1%
n/an/an/a

Price-To-Earnings vs Industry: BST is good value based on its Price-To-Earnings Ratio (7.9x) compared to the Australian Specialty Retail industry average (10.4x)


Price to Earnings Ratio vs Fair Ratio

What is BST'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.

BST PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.9x
Fair PE Ratio13.2x

Price-To-Earnings vs Fair Ratio: BST is good value based on its Price-To-Earnings Ratio (7.9x) compared to the estimated Fair Price-To-Earnings Ratio (13.2x).


Share Price vs Fair Value

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

Below Fair Value: BST (A$2.27) is trading below our estimate of fair value (A$11.27)

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


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 BST forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$2.27
AU$2.40
+5.7%
8.3%AU$2.60AU$2.20n/a2
Nov ’23AU$2.61
AU$2.70
+3.4%
7.4%AU$2.90AU$2.50n/a2
Oct ’23AU$2.32
AU$2.50
+7.8%
0%AU$2.50AU$2.50n/a1
Sep ’23AU$2.24
AU$2.50
+11.6%
0%AU$2.50AU$2.50n/a1
Aug ’23AU$2.50
AU$2.40
-4.0%
0%AU$2.40AU$2.40n/a1
Jul ’23AU$2.21
AU$2.40
+8.6%
0%AU$2.40AU$2.40n/a1
Jun ’23AU$2.50
AU$4.10
+64.0%
0%AU$4.10AU$4.10n/a1
May ’23AU$3.19
AU$4.10
+28.5%
0%AU$4.10AU$4.10n/a1
Apr ’23AU$2.93
AU$4.05
+38.2%
1.2%AU$4.10AU$4.00n/a2
Mar ’23AU$3.37
AU$4.05
+20.2%
1.2%AU$4.10AU$4.00n/a2
Feb ’23AU$3.92
AU$3.85
-1.8%
1.3%AU$3.90AU$3.80n/a2
Jan ’23AU$4.10
AU$3.85
-6.1%
1.3%AU$3.90AU$3.80n/a2
Dec ’22AU$3.47
AU$3.85
+11.0%
1.3%AU$3.90AU$3.80AU$2.322
Nov ’22AU$3.51
AU$3.35
-4.6%
1.5%AU$3.40AU$3.30AU$2.612
Oct ’22AU$3.30
AU$3.35
+1.5%
1.5%AU$3.40AU$3.30AU$2.322
Sep ’22AU$2.78
AU$3.30
+18.7%
0%AU$3.30AU$3.30AU$2.241

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


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