EROAD Limited

CHIA:ERD Stock Report

Market Cap: AU$246.1m

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.

Discounted Cash Flow
Simply Wall St
AU$2.16
Fair Value
41.2% undervalued intrinsic discount
2
Number of Analysts

Below Fair Value: ERD (A$1.27) is trading below our estimate of fair value (A$2.16)

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 barely profitable 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 Ratio1.4x
SalesNZ$194.40m
Market CapNZ$265.57m

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 Average18.4x
SMN Structural Monitoring Systems
2.3x24.73%AU$60.2m
NVX NOVONIX
31.1x133.45%AU$289.4m
ELS Elsight
39.2xn/aAU$112.7m
RWL Rubicon Water
0.9x19.40%AU$50.5m
ERD EROAD
1.3x5.87%AU$252.5m

Price-To-Sales vs Peers: ERD is good value based on its Price-To-Sales Ratio (1.3x) compared to the peer average (17.7x).

Price to Sales Ratio vs Industry

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

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
AMO Ambertech
0.2xn/aUS$9.20m
HIL Hills
0.3xn/aUS$7.88m
CLT Cellnet Group
0.09xn/aUS$4.07m
SP3 Spectur
0.5xn/aUS$2.58m
ERD 1.4xIndustry Avg. 1.5xNo. of Companies6PS02.44.87.29.612+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ERD is good value based on its Price-To-Sales Ratio (1.3x) compared to the Global Electronic industry average (1.5x).

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 Ratio1.4x
Fair PS Ratio0.6x

Price-To-Sales vs Fair Ratio: ERD is expensive based on its Price-To-Sales Ratio (1.3x) 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$1.33
AU$1.48
+11.75%
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$0.94n/a2
Jan ’26AU$0.99
AU$1.19
+20.36%
20.75%AU$1.44AU$0.94n/a2
Dec ’25AU$0.83
AU$1.19
+43.57%
20.75%AU$1.44AU$0.94n/a2
Nov ’25AU$0.82
AU$1.21
+46.86%
20.75%AU$1.46AU$0.96n/a2
Oct ’25AU$1.02
AU$1.21
+18.79%
20.75%AU$1.46AU$0.96n/a2
Sep ’25AU$1.15
AU$1.21
+5.36%
20.75%AU$1.46AU$0.96n/a2
Aug ’25AU$1.23
AU$1.21
-1.50%
20.75%AU$1.46AU$0.96n/a2
Jul ’25AU$0.96
AU$1.21
+25.56%
20.75%AU$1.46AU$0.96n/a2
Jun ’25AU$0.95
AU$1.22
+28.91%
20.75%AU$1.48AU$0.97n/a2
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
Jan ’25AU$0.94
AU$1.19
+26.82%
25.49%AU$1.49AU$0.88AU$0.992
Dec ’24AU$0.75
AU$1.19
+58.10%
25.49%AU$1.49AU$0.88AU$0.832
Jun ’24AU$0.63
AU$1.65
+163.40%
43.66%AU$2.36AU$0.93AU$0.952
May ’24AU$0.52
AU$1.60
+210.75%
30.43%AU$2.09AU$1.11AU$0.812
AnalystConsensusTarget
Consensus Narrative from 2 Analysts
AU$1.51
Fair Value
15.6% undervalued intrinsic discount
2
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/05/29 16:34
End of Day Share Price 2025/05/29 00:00
Earnings2025/03/31
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. 3 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
Wassim KisirwaniCredit Suisse
Guy Edward HooperJarden Limited