Novatti Group Limited

CHIA:NOV Stock Report

Market Cap: AU$13.0m

Novatti Group Valuation

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

Below Fair Value: NOV (A$0.03) is trading below our estimate of fair value (A$0.38)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for NOV. This is calculated by dividing NOV's market cap by their current revenue.
What is NOV's PS Ratio?
PS Ratio0.3x
SalesAU$42.90m
Market CapAU$13.00m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for NOV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.3x
ASV Asset Vision Co
3.8xn/aAU$15.5m
NET Netlinkz
0.6xn/aAU$11.6m
Z2U Zoom2u Technologies
2.5xn/aAU$14.7m
CF1 Complii FinTech Solutions
2.2xn/aAU$16.0m
NOV Novatti Group
0.3x9.4%AU$13.0m

Price-To-Sales vs Peers: NOV is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (2.3x).

Price to Sales Ratio vs Industry

How does NOV's PS Ratio compare vs other companies in the AU Software Industry?

16 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.2.9x15.8%
NOV Novatti Group
 0.3x9.4%US$8.40m
ADA Adacel Technologies
0.6x10.4%US$17.99m
MOQ MOQ
0.3xn/aUS$15.57m
NOV 0.3xIndustry Avg. 2.9xNo. of Companies18PS02.85.68.411.214+
16 CompaniesEstimated GrowthMarket Cap
Industry Avg.2.9x27.6%
NOV Novatti Group
 0.3x103.6%US$8.40m
No more companies

Price-To-Sales vs Industry: NOV is good value based on its Price-To-Sales Ratio (0.3x) compared to the Australian Software industry average (3x).

Price to Sales Ratio vs Fair Ratio

What is NOV'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.

NOV PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ratio0.4x

Price-To-Sales vs Fair Ratio: NOV is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Pureprofile

AU$37.1m

A data and insights organization, engages in the provision of online research solutions for agencies, marketers, researchers, publishers, and brands and businesses in Australasia, Europe, and the United States.

PPL

AU$0.032

7D

14.3%

1Y

14.3%

COSOL

AU$164.1m

Provides information technology services in the Asia Pacific, North America, Europe, the Middle East, Africa, and internationally.

COS

AU$0.93

7D

0.5%

1Y

10.1%

Pureprofile

AU$37.1m

A data and insights organization, engages in the provision of online research solutions for agencies, marketers, researchers, publishers, and brands and businesses in Australasia, Europe, and the United States.

PPL

AU$0.034

7D

21.4%

1Y

25.9%