Adairs Valuation

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

Below Fair Value: ADH (A$1.91) is trading below our estimate of fair value (A$7.87)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

ADH 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/Revenue1x
Enterprise Value/EBITDA8.4x
PEG Ratio0.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ADH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average44.7x
JYC Joyce
11.7xn/aAU$106.9m
TPW Temple & Webster Group
146.5x35.1%AU$1.3b
NCK Nick Scali
14.3x8.3%AU$1.2b
PWR Peter Warren Automotive Holdings
6.2x-5.9%AU$297.6m
ADH Adairs
10x13.2%AU$336.3m

Price-To-Earnings vs Peers: ADH is good value based on its Price-To-Earnings Ratio (10x) compared to the peer average (44.7x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a7.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a7.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: ADH is good value based on its Price-To-Earnings Ratio (10x) compared to the Australian Specialty Retail industry average (14.5x).


Price to Earnings Ratio vs Fair Ratio

What is ADH'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.

ADH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10x
Fair PE Ratio14.6x

Price-To-Earnings vs Fair Ratio: ADH is good value based on its Price-To-Earnings Ratio (10x) 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?

The above table shows the analyst ADH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$1.91
AU$2.12
+11.3%
7.9%AU$2.40AU$1.92n/a8
Jun ’25AU$1.73
AU$2.15
+24.5%
6.9%AU$2.40AU$2.00n/a8
May ’25AU$2.08
AU$2.15
+3.2%
6.9%AU$2.40AU$2.00n/a8
Apr ’25AU$2.58
AU$2.15
-16.8%
6.9%AU$2.40AU$2.00n/a8
Mar ’25AU$2.38
AU$2.15
-9.8%
6.9%AU$2.40AU$2.00n/a8
Feb ’25AU$1.66
AU$1.53
-7.9%
13.3%AU$1.80AU$1.10n/a8
Jan ’25AU$1.82
AU$1.53
-16.0%
13.3%AU$1.80AU$1.10n/a8
Dec ’24AU$1.53
AU$1.49
-2.5%
13.1%AU$1.80AU$1.10n/a8
Nov ’24AU$1.31
AU$1.57
+19.8%
18.9%AU$2.00AU$1.00n/a8
Oct ’24AU$1.42
AU$1.58
+10.9%
19.3%AU$2.00AU$1.00n/a8
Sep ’24AU$1.41
AU$1.58
+11.7%
19.3%AU$2.00AU$1.00n/a8
Aug ’24AU$1.80
AU$1.74
-3.2%
15.2%AU$2.10AU$1.20n/a8
Jul ’24AU$1.59
AU$1.71
+7.6%
15.5%AU$2.10AU$1.20n/a8
Jun ’24AU$1.90
AU$2.67
+40.6%
9.9%AU$3.10AU$2.40AU$1.739
May ’24AU$2.25
AU$2.72
+20.7%
10.9%AU$3.10AU$2.40AU$2.089
Apr ’24AU$2.04
AU$2.75
+34.9%
12.4%AU$3.31AU$2.40AU$2.589
Mar ’24AU$2.36
AU$2.86
+21.2%
16.1%AU$3.84AU$2.40AU$2.3810
Feb ’24AU$2.92
AU$2.88
-1.4%
16.9%AU$3.84AU$2.30AU$1.6610
Jan ’24AU$2.21
AU$2.80
+26.5%
17.8%AU$3.84AU$2.30AU$1.8210
Dec ’23AU$2.32
AU$2.80
+20.5%
17.8%AU$3.84AU$2.30AU$1.5310
Nov ’23AU$2.18
AU$2.80
+28.2%
17.8%AU$3.84AU$2.30AU$1.3110
Oct ’23AU$1.80
AU$2.94
+63.8%
18.1%AU$3.84AU$2.30AU$1.4210
Sep ’23AU$2.20
AU$2.89
+31.5%
20.2%AU$3.84AU$2.30AU$1.418
Aug ’23AU$2.45
AU$3.43
+40.1%
24.7%AU$4.90AU$2.30AU$1.808
Jul ’23AU$1.96
AU$3.87
+97.8%
20.8%AU$4.90AU$2.30AU$1.598
Jun ’23AU$2.23
AU$4.19
+88.0%
16.5%AU$5.20AU$3.30AU$1.908

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


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