EROAD Limited

CHIA:ERD Stock Report

Market Cap: AU$154.0m

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

Below Fair Value: ERD (A$0.85) is trading below our estimate of fair value (A$4.08)

Significantly Below Fair Value: ERD is trading below fair 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 Ratio0.9x
SalesNZ$189.00m
Market CapNZ$169.96m

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 Average14.2x
SMN Structural Monitoring Systems
2.3x10.1%AU$66.9m
NVX NOVONIX
34.6x110.3%AU$340.7m
ELS Elsight
18.6xn/aAU$56.1m
RWL Rubicon Water
1.4x16.0%AU$80.6m
ERD EROAD
0.9x6.8%AU$170.0m

Price-To-Sales vs Peers: ERD is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (13.5x).

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
0.7x15.0%US$977.39m
AMO Ambertech
0.2xn/aUS$9.92m
HIL Hills
0.3xn/aUS$7.88m
CLT Cellnet Group
0.09xn/aUS$4.07m
ERD 0.9xIndustry Avg. 1.6xNo. 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 (0.9x) compared to the Global Electronic industry average (1.6x).

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 Ratio0.9x
Fair PS Ratio0.6x

Price-To-Sales vs Fair Ratio: ERD is expensive based on its Price-To-Sales Ratio (0.9x) compared to the estimated Fair Price-To-Sales Ratio (0.6x).

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 ERD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$0.85
AU$1.19
+40.2%
20.8%AU$1.44AU$0.94n/a2
Nov ’25AU$0.82
AU$1.21
+46.9%
20.8%AU$1.46AU$0.96n/a2
Oct ’25AU$1.02
AU$1.21
+18.8%
20.8%AU$1.46AU$0.96n/a2
Sep ’25AU$1.15
AU$1.21
+5.4%
20.8%AU$1.46AU$0.96n/a2
Aug ’25AU$1.23
AU$1.21
-1.5%
20.8%AU$1.46AU$0.96n/a2
Jul ’25AU$0.96
AU$1.21
+25.6%
20.8%AU$1.46AU$0.96n/a2
Jun ’25AU$0.95
AU$1.22
+28.9%
20.8%AU$1.48AU$0.97n/a2
May ’25AU$0.81
AU$1.19
+46.4%
25.5%AU$1.49AU$0.88n/a2
Apr ’25AU$0.79
AU$1.19
+50.1%
25.5%AU$1.49AU$0.88n/a2
Mar ’25AU$0.76
AU$1.19
+57.1%
25.5%AU$1.49AU$0.88n/a2
Feb ’25AU$0.86
AU$1.19
+37.9%
25.5%AU$1.49AU$0.88n/a2
Jan ’25AU$0.94
AU$1.19
+26.8%
25.5%AU$1.49AU$0.88n/a2
Dec ’24AU$0.75
AU$1.19
+58.1%
25.5%AU$1.49AU$0.88n/a2
Jun ’24AU$0.63
AU$1.65
+163.4%
43.7%AU$2.36AU$0.93AU$0.952
May ’24AU$0.52
AU$1.60
+210.7%
30.4%AU$2.09AU$1.11AU$0.812
Apr ’24AU$0.59
AU$1.60
+169.0%
30.4%AU$2.09AU$1.11AU$0.792
Mar ’24AU$0.69
AU$2.04
+194.1%
34.8%AU$2.76AU$1.33AU$0.762
Feb ’24AU$0.85
AU$2.05
+140.9%
34.8%AU$2.76AU$1.33AU$0.862
Jan ’24AU$0.83
AU$2.10
+153.5%
34.8%AU$2.84AU$1.37AU$0.942
Dec ’23AU$1.08
AU$2.52
+133.7%
46.8%AU$3.70AU$1.34AU$0.752
Nov ’23AU$1.12
AU$3.05
+172.2%
18.5%AU$3.61AU$2.48AU$0.592

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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Dicker Data

AU$1.5b

Engages in the wholesale distribution of computer hardware, software, cloud, access control, surveillance, and technologies in Australia and New Zealand.

DDR

AU$8.32

7D

-1.3%

1Y

-28.3%

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AU$15.3m

Operates as a technology equipment distribution company in Australia and New Zealand.

AMO

AU$0.15

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1Y

-35.4%

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AU$10.2m

Develops and manufactures hardware and software video technology solutions in North America, Europe, the United Kingdom, the Asia Pacific, and Latin America.

BDT

AU$0.062

7D

-8.8%

1Y

-38.0%