Rubicon Water Limited

ASX:RWL Stock Report

Market Cap: AU$86.7m

Rubicon Water Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: Insufficient data to calculate RWL's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate RWL's fair value for valuation analysis.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for RWL. This is calculated by dividing RWL's market cap by their current revenue.
What is RWL's PS Ratio?
PS Ratio1.5x
SalesAU$58.40m
Market CapAU$86.65m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for RWL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average6.1x
SMN Structural Monitoring Systems
2.5x12.0%AU$69.1m
ELS Elsight
19.3xn/aAU$60.6m
AVA AVA Risk Group
1.2x25.5%AU$36.3m
TZL TZ
1.3xn/aAU$18.1m
RWL Rubicon Water
1.5x16.0%AU$86.7m

Price-To-Sales vs Peers: RWL is good value based on its Price-To-Sales Ratio (1.5x) compared to the peer average (6.1x).

Price to Sales Ratio vs Industry

How does RWL's PS Ratio compare vs other companies in the AU Electronic Industry?

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
DDR Dicker Data
0.7x15.0%US$981.70m
AMO Ambertech
0.1xn/aUS$9.30m
HIL Hills
0.3xn/aUS$7.88m
CLT Cellnet Group
0.09xn/aUS$4.07m
RWL 1.5xIndustry Avg. 1.6xNo. of Companies7PS03.26.49.612.816+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: RWL is good value based on its Price-To-Sales Ratio (1.5x) compared to the Global Electronic industry average (1.6x).

Price to Sales Ratio vs Fair Ratio

What is RWL'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.

RWL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.5x
Fair PS Ratio1.2x

Price-To-Sales vs Fair Ratio: RWL is expensive based on its Price-To-Sales Ratio (1.5x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).

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.

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