ikeGPS Group Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: IKE (A$0.48) is trading below our estimate of fair value (A$2.05)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for IKE. This is calculated by dividing IKE's market cap by their current revenue.
What is IKE's PS Ratio?
PS Ratio	4.5x
Sales	NZ$21.10m
Market Cap	NZ$96.45m

IKE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	4.1x
Enterprise Value/EBITDA	-6.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for IKE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	5.9x
SMN Structural Monitoring Systems	2.5x	12.0%	AU$69.1m
ELS Elsight	18.6x	n/a	AU$60.6m
RWL Rubicon Water	1.3x	16.0%	AU$86.7m
AVA AVA Risk Group	1.3x	25.5%	AU$36.3m
IKE ikeGPS Group	4.5x	23.5%	AU$96.4m

Price-To-Sales vs Peers: IKE is good value based on its Price-To-Sales Ratio (4.5x) compared to the peer average (6.5x).

Price to Sales Ratio vs Industry

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

7 Companies	Price / Sales	Estimated Growth	Market Cap
DDR Dicker Data	0.7x	15.0%	US$981.70m
AMO Ambertech	0.2x	n/a	US$9.30m
HIL Hills	0.3x	n/a	US$7.88m
CLT Cellnet Group	0.09x	n/a	US$4.07m

7 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: IKE is expensive based on its Price-To-Sales Ratio (4.5x) compared to the Global Electronic industry average (1.6x).

Price to Sales Ratio vs Fair Ratio

What is IKE'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.

IKE PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	4.5x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate IKE's Price-To-Sales Fair Ratio for valuation analysis.

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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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$8.37

-5.4%

-24.3%

Ambertech

AU$14.3m

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

AMO

AU$0.15

-9.1%

-37.5%

BirdDog Technology

AU$10.3m

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

BDT

AU$0.068

-32.0%