We’ve recently updated our valuation analysis.

EML Payments Valuation

Is EML 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales 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 EML?

Other financial metrics that can be useful for relative valuation.

EML 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/Revenue1.2x
Enterprise Value/EBITDA9.1x
PEG Ration/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for EML vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average4.2x
SZL Sezzle
0.6x7.1%AU$118.5m
TYR Tyro Payments
2.4x12.0%AU$823.0m
SPT Splitit Payments
6.4xn/aAU$101.1m
WRK Wrkr
6.9xn/aAU$33.1m
EML EML Payments
1x7.7%AU$252.4m

Price-To-Sales vs Peers: EML is good value based on its Price-To-Sales Ratio (1x) compared to the peer average (4.2x).


Price to Earnings Ratio vs Industry

How does EML's PE Ratio compare vs other companies in the AU IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a26.4%
n/an/an/a

Price-To-Sales vs Industry: EML is good value based on its Price-To-Sales Ratio (1x) compared to the Australian IT industry average (1.4x)


Price to Sales Ratio vs Fair Ratio

What is EML'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.

EML PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1x
Fair PS Ratio2x

Price-To-Sales vs Fair Ratio: EML is good value based on its Price-To-Sales Ratio (1x) compared to the estimated Fair Price-To-Sales Ratio (2x).


Share Price vs Fair Value

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

Below Fair Value: EML (A$0.65) is trading below our estimate of fair value (A$2.55)

Significantly Below Fair Value: EML 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 EML forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$0.65
AU$1.19
+83.4%
40.7%AU$2.00AU$0.63n/a8
Nov ’23AU$0.53
AU$1.32
+148.6%
29.7%AU$2.00AU$0.80n/a8
Oct ’23AU$0.80
AU$1.63
+103.7%
45.6%AU$3.40AU$0.93n/a8
Sep ’23AU$0.88
AU$1.63
+86.3%
45.6%AU$3.40AU$0.93n/a8
Aug ’23AU$1.02
AU$2.04
+101.0%
45.5%AU$3.65AU$0.97n/a10
Jul ’23AU$1.25
AU$2.71
+117.4%
35.8%AU$4.50AU$1.23n/a10
Jun ’23AU$1.45
AU$2.71
+87.3%
35.8%AU$4.50AU$1.23n/a10
May ’23AU$1.60
AU$2.86
+79.0%
38.0%AU$4.50AU$1.23n/a10
Apr ’23AU$2.91
AU$4.09
+40.6%
8.4%AU$4.55AU$3.50n/a9
Mar ’23AU$2.66
AU$4.09
+53.8%
8.4%AU$4.55AU$3.50n/a9
Feb ’23AU$3.07
AU$4.25
+38.4%
5.8%AU$4.62AU$3.90n/a9
Jan ’23AU$3.23
AU$4.25
+31.5%
5.8%AU$4.62AU$3.90n/a9
Dec ’22AU$3.47
AU$4.25
+22.4%
5.8%AU$4.62AU$3.90AU$0.669
Nov ’22AU$2.94
AU$4.28
+45.4%
9.7%AU$4.80AU$3.50AU$0.539
Oct ’22AU$3.75
AU$4.39
+17.1%
8.7%AU$4.80AU$3.50AU$0.808
Sep ’22AU$4.19
AU$4.39
+4.8%
8.7%AU$4.80AU$3.50AU$0.888
Aug ’22AU$3.55
AU$4.33
+21.9%
11.9%AU$5.30AU$3.50AU$1.027
Jul ’22AU$3.63
AU$4.07
+12.2%
15.4%AU$5.30AU$3.50AU$1.256
Jun ’22AU$3.28
AU$4.08
+24.4%
15.4%AU$5.30AU$3.50AU$1.456
May ’22AU$5.71
AU$5.89
+3.1%
17.6%AU$6.75AU$3.24AU$1.608
Apr ’22AU$4.91
AU$5.32
+8.4%
15.0%AU$5.80AU$3.24AU$2.918
Mar ’22AU$5.09
AU$5.32
+4.6%
15.0%AU$5.80AU$3.24AU$2.668
Feb ’22AU$3.88
AU$4.23
+9.1%
11.6%AU$5.00AU$3.24AU$3.077
Jan ’22AU$4.18
AU$4.24
+1.3%
10.8%AU$5.00AU$3.24AU$3.238
Dec ’21AU$3.94
AU$4.24
+7.5%
10.8%AU$5.00AU$3.24AU$3.478

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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