EROAD Limited

CHIA:ERD Stock Report

Market Cap: AU$170.6m

EROAD Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

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

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: ERD (A$0.89) is trading below our estimate of future cash flow value (A$2.43)

Significantly Below Future Cash Flow Value: ERD is trading below future cash flow value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for ERD. This is calculated by dividing ERD's market cap by their current revenue.
What is ERD's PS Ratio?
PS Ratio1x
SalesNZ$197.60m
Market CapNZ$198.84m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for ERD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average10.3x
NVX NOVONIX
33.9xn/aAU$288.1m
SMN Structural Monitoring Systems
2.3xn/aAU$64.6m
RWL Rubicon Water
0.6xn/aAU$43.3m
RKT RocketDNA
4.3xn/aAU$30.8m
ERD EROAD
1x4.37%AU$198.8m

Price-To-Sales vs Peers: ERD is good value based on its Price-To-Sales Ratio (1x) compared to the peer average (10.3x).

Historical Price to Sales Ratio

Historical Price to Sales Ratio compares a stock's price to its sales over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Sales Ratio vs Industry

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

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
DDR Dicker Data
0.7x11.67%US$1.24b
RWL Rubicon Water
0.6xn/aUS$30.41m
AVA AVA Risk Group
0.6x16.49%US$12.20m
AMO Ambertech
0.1xn/aUS$10.00m
ERD 1.0xIndustry Avg. 1.9xNo. of Companies7PS03.26.49.612.816+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ERD is good value based on its Price-To-Sales Ratio (1x) compared to the Global Electronic industry average (1.9x).

Price to Sales Ratio vs Fair Ratio

What is ERD'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.

ERD PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1x
Fair PS Ratio0.7x

Price-To-Sales vs Fair Ratio: ERD is expensive based on its Price-To-Sales Ratio (1x) compared to the estimated Fair Price-To-Sales Ratio (0.7x).

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 ERD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$0.89
AU$1.72
+93.21%
40.00%AU$2.41AU$1.03n/a2
Jan ’27AU$1.07
AU$1.89
+77.53%
28.74%AU$2.43AU$1.35n/a2
Dec ’26AU$1.25
AU$1.89
+51.86%
28.74%AU$2.43AU$1.35n/a2
Nov ’26AU$1.70
AU$2.05
+21.08%
20.43%AU$2.47AU$1.63n/a2
Oct ’26AU$2.29
AU$1.92
-16.33%
42.86%AU$2.74AU$1.09n/a2
Sep ’26AU$2.17
AU$1.92
-11.71%
42.86%AU$2.74AU$1.09n/a2
Aug ’26AU$1.41
AU$1.47
+4.04%
25.00%AU$1.83AU$1.10n/a2
Jul ’26AU$1.30
AU$1.48
+14.34%
25.00%AU$1.85AU$1.11n/a2
Jun ’26AU$1.40
AU$1.48
+6.15%
25.00%AU$1.85AU$1.11n/a2
May ’26AU$0.83
AU$1.19
+42.71%
20.75%AU$1.44AU$0.94n/a2
Apr ’26AU$0.86
AU$1.19
+37.76%
20.75%AU$1.44AU$0.94n/a2
Mar ’26AU$0.95
AU$1.19
+25.43%
20.75%AU$1.44AU$0.94n/a2
Feb ’26AU$0.97
AU$1.19
+22.85%
20.75%AU$1.44AU$0.94AU$1.012
Jan ’26AU$0.99
AU$1.19
+20.36%
20.75%AU$1.44AU$0.94AU$1.072
Dec ’25AU$0.83
AU$1.19
+43.57%
20.75%AU$1.44AU$0.94AU$1.252
Nov ’25AU$0.82
AU$1.21
+46.86%
20.75%AU$1.46AU$0.96AU$1.702
Oct ’25AU$1.02
AU$1.21
+18.79%
20.75%AU$1.46AU$0.96AU$2.292
Sep ’25AU$1.15
AU$1.21
+5.36%
20.75%AU$1.46AU$0.96AU$2.172
Aug ’25AU$1.23
AU$1.21
-1.50%
20.75%AU$1.46AU$0.96AU$1.412
Jul ’25AU$0.96
AU$1.21
+25.56%
20.75%AU$1.46AU$0.96AU$1.302
Jun ’25AU$0.95
AU$1.22
+28.91%
20.75%AU$1.48AU$0.97AU$1.402
May ’25AU$0.81
AU$1.19
+46.39%
25.49%AU$1.49AU$0.88AU$0.832
Apr ’25AU$0.79
AU$1.19
+50.10%
25.49%AU$1.49AU$0.88AU$0.862
Mar ’25AU$0.76
AU$1.19
+57.05%
25.49%AU$1.49AU$0.88AU$0.952
Feb ’25AU$0.86
AU$1.19
+37.88%
25.49%AU$1.49AU$0.88AU$0.972
AU$1.68
Fair Value
47.0% undervalued intrinsic discount
2
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/02/06 10:51
End of Day Share Price 2026/02/06 00:00
Earnings2025/09/30
Annual Earnings2025/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

EROAD Limited is covered by 4 analysts. 4 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Owen HumphriesCanaccord Genuity
Guy Edward HooperJarden Limited
Sinclair CurrieMA Moelis Australia Securities Pty Ltd