Sonargaon Textiles Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: SONARGAON (BDT20.8) is trading below our estimate of fair value (BDT127.49)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for SONARGAON. This is calculated by dividing SONARGAON's market cap by their current revenue.
What is SONARGAON's PS Ratio?
PS Ratio	2.9x
Sales	৳187.14m
Market Cap	৳550.51m

SONARGAON 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	6.5x
Enterprise Value/EBITDA	65.4x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SONARGAON 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	1.3x
TALLUSPIN Toyo Spinning Mills	1.6x	n/a	৳437.7m
ANLIMAYARN Anlima Yarn Dyeing	2.2x	n/a	৳368.1m
HRTEX H.R. Textile Mills	0.8x	n/a	৳713.0m
RAHIMTEXT Rahim Textile Mills	0.7x	n/a	৳1.1b
SONARGAON Sonargaon Textiles	2.9x	n/a	৳550.5m

Price-To-Sales vs Peers: SONARGAON is expensive based on its Price-To-Sales Ratio (2.9x) compared to the peer average (1.3x).

Price to Sales Ratio vs Industry

How does SONARGAON's PS Ratio compare vs other companies in the BD Luxury Industry?

2 Companies	Price / Sales	Estimated Growth	Market Cap
APEXFOOT Apex Footwear	0.2x	n/a	US$23.96m
APEXSPINN Apex Spinning & Knitting Mills	0.2x	n/a	US$6.83m

No more companies available in this PS range

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: SONARGAON is expensive based on its Price-To-Sales Ratio (2.9x) compared to the BD Luxury industry average (0.9x).

Price to Sales Ratio vs Fair Ratio

What is SONARGAON'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.

SONARGAON PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2.9x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate SONARGAON'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.