MotorCycle Holdings Limited

ASX:MTO Stock Report

Market Cap: AU$119.6m

MotorCycle Holdings Valuation

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

Below Fair Value: MTO (A$1.62) is trading below our estimate of fair value (A$2.79)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MTO. This is calculated by dividing MTO's market cap by their current earnings.
What is MTO's PE Ratio?
PE Ratio8.5x
EarningsAU$14.13m
Market CapAU$119.57m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MTO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.5x
PWR Peter Warren Automotive Holdings
8.4x4.5%AU$301.9m
ASG Autosports Group
6.8x0.5%AU$410.9m
APE Eagers Automotive
11.4x1.8%AU$2.9b
JYC Joyce
15.5xn/aAU$137.2m
MTO MotorCycle Holdings
8.5x9.4%AU$119.6m

Price-To-Earnings vs Peers: MTO is good value based on its Price-To-Earnings Ratio (8.5x) compared to the peer average (10.5x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
MTO 8.5xIndustry Avg. 17.4xNo. of Companies3PE0816243240+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MTO is good value based on its Price-To-Earnings Ratio (8.5x) compared to the Australian Specialty Retail industry average (17.4x).

Price to Earnings Ratio vs Fair Ratio

What is MTO'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.

MTO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.5x
Fair PE Ratio14.5x

Price-To-Earnings vs Fair Ratio: MTO is good value based on its Price-To-Earnings Ratio (8.5x) compared to the estimated Fair Price-To-Earnings Ratio (14.5x).

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 MTO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$1.62
AU$1.91
+18.0%
19.3%AU$2.37AU$1.47n/a3
Nov ’25AU$1.65
AU$1.91
+16.2%
19.3%AU$2.37AU$1.47n/a3
Oct ’25AU$1.64
AU$1.91
+16.6%
19.3%AU$2.37AU$1.47n/a3
Sep ’25AU$1.30
AU$1.65
+27.2%
14.3%AU$1.97AU$1.40n/a3
Aug ’25AU$1.32
AU$1.65
+25.7%
14.3%AU$1.97AU$1.40n/a3
Jul ’25AU$1.06
AU$1.65
+55.8%
14.5%AU$1.97AU$1.40n/a3
Jun ’25AU$1.39
AU$1.82
+30.9%
9.1%AU$1.97AU$1.59n/a3
May ’25AU$1.50
AU$1.82
+21.3%
9.1%AU$1.97AU$1.59n/a3
Apr ’25AU$1.56
AU$1.82
+17.0%
9.1%AU$1.97AU$1.59n/a3
Mar ’25AU$1.64
AU$1.82
+11.0%
9.1%AU$1.97AU$1.59n/a3
Feb ’25AU$1.92
AU$2.08
+8.3%
9.5%AU$2.36AU$1.93n/a3
Jan ’25AU$2.00
AU$2.12
+6.2%
8.1%AU$2.36AU$1.95n/a3
Dec ’24AU$2.06
AU$2.49
+20.7%
12.5%AU$2.80AU$2.06n/a3
Nov ’24AU$2.00
AU$2.49
+24.6%
12.5%AU$2.80AU$2.06AU$1.653
Oct ’24AU$2.10
AU$2.49
+18.5%
12.5%AU$2.80AU$2.06AU$1.643
Sep ’24AU$2.21
AU$2.44
+10.3%
15.7%AU$2.80AU$1.91AU$1.303
Aug ’24AU$1.80
AU$2.30
+28.0%
18.6%AU$2.90AU$1.91AU$1.323
Jul ’24AU$1.45
AU$2.55
+76.0%
17.8%AU$2.90AU$1.91AU$1.063
Jun ’24AU$1.62
AU$2.55
+58.1%
17.8%AU$2.90AU$1.91AU$1.393
May ’24AU$1.79
AU$2.55
+42.6%
17.8%AU$2.90AU$1.91AU$1.503
Apr ’24AU$1.66
AU$2.73
+64.5%
18.3%AU$3.26AU$1.91AU$1.564
Mar ’24AU$1.88
AU$2.73
+45.2%
18.3%AU$3.26AU$1.91AU$1.644
Feb ’24AU$2.27
AU$3.04
+33.9%
12.7%AU$3.42AU$2.40AU$1.924
Jan ’24AU$2.39
AU$3.04
+27.2%
12.7%AU$3.42AU$2.40AU$2.004
Dec ’23AU$2.39
AU$3.04
+27.2%
12.7%AU$3.42AU$2.40AU$2.064
Nov ’23AU$2.57
AU$3.04
+18.3%
12.7%AU$3.42AU$2.40AU$2.004

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

Discover undervalued companies

Super Retail Group

AU$3.3b

Engages in the retail of auto, sports, and outdoor leisure products in Australia and New Zealand.

SUL

AU$14.50

7D

-1.4%

1Y

6.7%

MotorCycle Holdings

AU$119.6m

Owns and operates motorcycle dealerships in Australia.

MTO

AU$1.62

7D

0%

1Y

-22.1%

Michael Hill International

AU$227.0m

Owns and operates jewelry stores and provides related services in Australia, New Zealand, and Canada.

MHJ

AU$0.61

7D

5.2%

1Y

-24.2%