Velan Inc.

TSX:VLN Stock Report

Market Cap: CA$227.7m

Velan Valuation

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

Below Fair Value: VLN (CA$10.55) is trading below our estimate of fair value (CA$309.46)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for VLN. This is calculated by dividing VLN's market cap by their current revenue.
What is VLN's PS Ratio?
PS Ratio0.4x
SalesUS$374.99m
Market CapUS$158.57m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for VLN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.5x
SIS Savaria
1.7x7.1%CA$1.5b
SHRC Sharc International Systems
10.9xn/aCA$24.0m
REKO Reko International Group
0.4xn/aCA$18.0m
TMG Thermal Energy International
1.2x28.2%CA$33.7m
VLN Velan
0.4xn/aCA$227.7m

Price-To-Sales vs Peers: VLN is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (3.5x).

Price to Sales Ratio vs Industry

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

5 CompaniesPrice / SalesEstimated GrowthMarket Cap
WPRT Westport Fuel Systems
0.2x6.3%US$59.75m
BUI Buhler Industries
0.3xn/aUS$50.14m
VMC Vicinity Motor
0.08xn/aUS$2.46m
CAG Composite Alliance Group
0.2xn/aUS$1.15m
VLN 0.4xIndustry Avg. 1.3xNo. of Companies8PS01.22.43.64.86+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: VLN is good value based on its Price-To-Sales Ratio (0.4x) compared to the North American Machinery industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

What is VLN'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.

VLN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate VLN'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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/26 13:23
End of Day Share Price 2024/12/23 00:00
Earnings2024/08/31
Annual Earnings2024/02/29

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 here.

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 .

Analyst Sources

Velan Inc. is covered by 1 analysts. 0 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Claude ProulxBMO Capital Markets Equity Research