Duxton Water Valuation
Is D2O undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6Valuation Score 3/6
Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast
Share Price vs Fair Value
What is the Fair Price of D2O when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: D2O (A$1.37) is trading below our estimate of fair value (A$1.85)
Significantly Below Fair Value: D2O is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for D2O?
Key metric: As D2O is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is D2O's PE Ratio? | |
|---|---|
| PE Ratio | 18.6x |
| Earnings | AU$11.76m |
| Market Cap | AU$219.13m |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 10.3x |
| Enterprise Value/EBITDA | n/a |
| PEG Ratio | -4.6x |
Price to Earnings Ratio vs Peers
How does D2O's PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 23.8x | ||
TPC TPC Consolidated | 20.2x | n/a | AU$108.8m |
LGI LGI | 38.9x | 17.9% | AU$259.3m |
DEL Delorean | 8.8x | n/a | AU$41.9m |
EYAPS Thessaloniki Water Supply & Sewerage Co | 27.4x | n/a | €113.6m |
D2O Duxton Water | 18.6x | -4.1% | AU$219.1m |
Price-To-Earnings vs Peers: D2O is good value based on its Price-To-Earnings Ratio (18.6x) compared to the peer average (23.7x).
Price to Earnings Ratio vs Industry
How does D2O's PE Ratio compare vs other companies in the Global Water Utilities Industry?
| 3 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 3 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: D2O is expensive based on its Price-To-Earnings Ratio (18.6x) compared to the Global Water Utilities industry average (17.1x).
Price to Earnings Ratio vs Fair Ratio
What is D2O's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 18.6x |
| Fair PE Ratio | 14.2x |
Price-To-Earnings vs Fair Ratio: D2O is expensive based on its Price-To-Earnings Ratio (18.6x) compared to the estimated Fair Price-To-Earnings Ratio (14.2x).
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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