The Lion Electric Company

TSX:LEV Stock Report

Market Cap: CA$108.6m

Lion Electric Valuation

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

Below Fair Value: Insufficient data to calculate LEV's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate LEV's fair value for valuation analysis.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for LEV. This is calculated by dividing LEV's market cap by their current revenue.
What is LEV's PS Ratio?
PS Ratio0.4x
SalesUS$176.81m
Market CapUS$77.07m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for LEV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.7x
TGH Tornado Global Hydrovacs
1.2x21.0%CA$159.6m
WPRT Westport Fuel Systems
0.2x4.7%CA$101.0m
GPV GreenPower Motor
1.1x47.4%CA$33.3m
KLS Kelso Technologies
0.4xn/aCA$7.9m
LEV Lion Electric
0.4x29.4%CA$108.6m

Price-To-Sales vs Peers: LEV is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (0.7x).

Price to Sales Ratio vs Industry

How does LEV's PS Ratio compare vs other companies in the CA Machinery Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.1.0x8.2%
LEV Lion Electric
 0.4x29.4%US$77.07m
WPRT Westport Fuel Systems
0.2x4.7%US$71.69m
BUI Buhler Industries
0.3xn/aUS$51.10m
LEV 0.4xIndustry Avg. 1.0xNo. of Companies8PS01.63.24.86.48+
6 CompaniesEstimated GrowthMarket Cap
Industry Avg.1.0x49.8%
LEV Lion Electric
 0.4x19.3%US$77.07m
No more companies

Price-To-Sales vs Industry: LEV is good value based on its Price-To-Sales Ratio (0.4x) compared to the Canadian Machinery industry average (1x).

Price to Sales Ratio vs Fair Ratio

What is LEV'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.

LEV PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ratio0.2x

Price-To-Sales vs Fair Ratio: LEV is expensive based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (0.2x).

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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